The federal court fight over marijuana's partial move to Schedule III would not be fully briefed until February 2027 under a schedule both sides proposed this month. That means a ruling is unlikely before next spring at the earliest. Until then, the April reclassification stays in effect, and New York's cannabis industry keeps operating under a split federal status.
What was filed
On Oct. 9, the Justice Department and the 11 challengers filed a joint proposed briefing schedule with the U.S. Court of Appeals for the D.C. Circuit. The case is SAM, Inc. v. U.S. Department of Justice, No. 26-1106, consolidated with Nos. 26-1130 and 26-1136.
The petitioners challenge Attorney General Order No. 6754-2026, published April 28, 2026 (91 Fed. Reg. 22714). That order moved certain categories of marijuana from Schedule I to Schedule III of the Controlled Substances Act. It covers FDA-approved products and marijuana subject to a state medical marijuana license.
The 11 challengers are:
- Smart Approaches to Marijuana (SAM) and the National Drug and Alcohol Screening Association
- the states of Indiana and Nebraska
- Cannabis Industry Victims Educating Litigators, New Directions Addiction Recovery Services, three MMJ companies developing a cannabis drug for FDA approval, and two doctors
The timeline
The parties proposed:
- Nov. 24, 2026: challengers' consolidated opening brief
- Dec. 1: supporting amicus briefs
- Jan. 13, 2027: government's response
- Jan. 20: amicus briefs for the government
- Feb. 5: challengers' reply
- Feb. 19: final briefs
The challengers asked the court to schedule oral argument "as soon as reasonably practicable" after briefing ends, so it can happen before the court's summer recess. The filing notes that the court typically schedules argument at least 45 days after briefing is complete. On that timeline, argument would come in April 2027 at the earliest, and a decision would follow later.
The filing also signals a fight over standing, meaning whether the challengers have a legal right to sue at all. The government has already contested it, and the challengers asked for 2,000 extra words to make their case. If the court finds they lack standing, it could dismiss the case without deciding whether the reclassification was lawful.
Two tracks, both slow
The court case is one of two federal tracks, and both have stalled this fall:
- The court challenge covers the April order for medical marijuana. According to Marijuana Moment, the D.C. Circuit refused last month to pause the order while the case proceeds, so it remains in force.
- The DEA hearing covers rescheduling all marijuana, including adult-use. On Sept. 29, DEA's chief administrative law judge paused it to consider adding a new Government Accountability Office report on the agency's scheduling procedures to the record. DEA's response was due Oct. 13.
Meanwhile, state regulators in California, Vermont and Georgia said in early October that DEA has not answered their questions about how the change will work in practice, Marijuana Moment reported.
What it means for New York
The April order applies to marijuana under a state medical license. In New York, that points most directly to the companies licensed to run the state's medical program, called registered organizations. Nearly all of the 700-plus adult-use dispensaries where New Yorkers shop remain under Schedule I. That keeps them subject to the federal Section 280E tax rule, which bars deductions for ordinary business costs such as rent and payroll.
The schedule above means two things:
- Medical operators get more certainty, for now. The order stays in place at least through the briefing period. Any company counting on Schedule III tax treatment still faces the risk that the court could undo it in 2027.
- Adult-use relief depends on the DEA track, which is paused. Ending 280E for the broader market depends on that hearing producing a final rule, and no date for that has been set.
Nothing changes at the counter. Federal rescheduling does not alter New York's purchase limits, its age-21 rule or where you can legally buy. For background, see our earlier coverage of the lawsuit to block rescheduling and the final briefs in the DEA hearing. For adults 21+.