DOJ Signals Deprioritization of Federal Cannabis Policy

Though this recent development is consistent with the federal government’s deregulatory initiatives — such as those under Executive Orders (EOs) Unleashing Prosperity Through Deregulation and Ensuring Lawful Governance and Implementing the President’s “Department of Government Efficiency” Deregulatory Initiative — it may also signal the DOJ’s deprioritization of cannabis-related rulemaking and policy development.

Effective September 11, 16 proposed rulemaking actions included in the Federal Register and the Spring 2025 Unified Agenda were officially withdrawn from consideration by the US Drug Enforcement Administration. This move is part of a broader deregulatory initiative under various EOs issued earlier this year. Among other things, the EOs require executive agencies repeal at least 10 existing regulations for every new regulation proposed, evaluate all potential new regulations, and develop a Unified Regulatory Agenda that seeks to rescind or modify any regulations that potentially constitute “federal overreach.” In response, the DOJ conducted a comprehensive review of proposed rules and identified those it considered not in alignment with the agency’s priorities and objectives. Among the withdrawn rules are two related to the cannabis industry.

The first EO, titled Analytical Labs and Hemp, aimed to address regulatory burdens created by the Agriculture Improvement Act of 2018, which created the US Department of Agriculture (USDA) Domestic Hemp Production Program and set requirements for labs conducting analytical testing of THC concentration levels. Under Section 990.27, plants over 0.3% THC are treated as Schedule I Controlled Substances, requiring labs to remediate or dispose of the non-compliant plants and submit documentation to the USDA verifying such remediation and disposal. The withdrawn rule would have reduced these burdens on testing labs.

The second, titled Medical Marijuana and Cannabidiol Research Expansion, sought to limit restrictions governing medical research involving cannabis under the Medical Marijuana and Cannabidiol Research Expansion Act passed in 2022.

While this development aligns with the current Administration’s deregulatory agenda, it may also signal that cannabis policy is a low priority.

ArentFox Schiff’s Cannabis Industry team regularly partners with clients to anticipate changes, identify potential issues early, and craft strategic, tailored solutions that help navigate the intricate web of regulations unique to the cannabis sector. For more information, contact one of the authors, a member of our Cannabis team, or the AFS attorney with whom you normally work.