Federal Judge Halts Marijuana Reclassification Following Government Audit Findings

2026-09-30 politics

Washington, Wednesday, 30 September 2026.
A federal administrative judge paused proceedings to reclassify marijuana after a government audit revealed both the DEA and FDA lack formal written policies for evaluating controlled substances.

Judicial Stay and Procedural Deficiencies

On September 29, 2026, DEA Chief Administrative Law Judge Derek C. Julius issued an order staying all proceedings regarding the broader rescheduling of marijuana [1][2]. This judicial stay halts the administrative process just as the industry anticipated a final recommendation following hearings that concluded on July 15, 2026 [1][6]. The decision comes in direct response to a critical Government Accountability Office (GAO) report, released on September 23, 2026, which exposed significant deficiencies in how federal agencies evaluate controlled substances [1][6]. Judge Julius found merit in the argument that the record should be extended to include the GAO report, warranting a pause to allow for briefing on the matter [2][5]. The stay remains in effect pending the resolution of a motion filed by the National Drug & Alcohol Screening Association, DUID Victim Voices, and Kenneth Finn, M.D., to admit the GAO report into the official record [1][5].

Agency Protocols Under Scrutiny

The GAO audit, identified as GAO-26-108623, highlighted that the Drug Enforcement Administration (DEA) lacks comprehensive, written policies and procedures to guide staff in conducting scheduling evaluations [1][6]. Similarly, the Food and Drug Administration (FDA) was found to lack written procedures for eight-factor analyses and abuse-potential criteria [1][6]. During previous testimony, FDA official Dr. David Chiapperino acknowledged that the FDA did not complete a five-part medical-use analysis in its marijuana evaluation [1]. Furthermore, DEA pharmacologist Dr. Luli Akinfiresoye questioned the scientific adequacy of the two-part framework used, noting it lacked chemistry, safety, and efficacy requirements compared to the traditional five-part test [1][6]. Both agencies have concurred with the report’s recommendations to address these deficiencies, though the immediate impact is a halt in the current regulatory timeline [1].

Political Context and Industry Implications

This regulatory pause introduces uncertainty for the Trump administration’s rescheduling effort, which faces consolidated lawsuits from state attorneys general and legalization opponents [2][6]. While former U.S. Attorney General Merrick Garland signed the proposed rule in 2024 under the Biden administration, the current process is being defended by Attorney General Todd Blanche [2][6]. The DEA is required to submit a response to the motion to admit the GAO report by October 13, 2026, a deadline that industry leaders warn could cause significant delays [1][5]. Duane Boise, CEO of MMJ International Holdings, noted that while the hearing was completed and briefs filed, the next anticipated step was a recommendation, which is now interrupted [1]. A separate order from April 2026, placing marijuana in Schedule III specifically for FDA-approved products and state-licensed medical marijuana, remains in effect and is not impacted by the current stay [1].

Sources

Cannabis Regulation GAO Report