🌿 DEA releases full rescheduling transcript, Gallup finds cannabis use at record high, and cannabis arrests climb despite legalization

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Rescheduling record. The U.S. Drug Enforcement Administration (DEA) has released the full 2,533-page transcript of its 11-day hearing on the proposed federal rescheduling of cannabis from Schedule I to Schedule III under the Controlled Substances Act.

The transcript captures the government’s case that cannabis has a currently accepted medical use and that its safety and abuse profile are more consistent with Schedule III substances.

Opponents, including several states, drug-testing organizations, and anti-legalization groups, argued that cannabis lacks accepted medical value and that rescheduling could undermine workplace drug-testing requirements.

The release comes as DEA Administrative Law Judge Derek Julius prepares his recommended decision after reviewing the hearing record and final briefs. The DEA has asked the judge to recommend rescheduling, citing an extensive Department of Health and Human Services review and the millions of patients receiving medical cannabis across U.S. jurisdictions.

While Julius’s recommendation will be an important next step, the ultimate decision rests with the DEA administrator. The outcome remains particularly significant for the cannabis industry because Schedule III status would remove cannabis businesses from the federal tax burden imposed by IRC Section 280E, potentially allowing state-licensed operators to claim ordinary federal business deductions.

Cannabis consumption. Gallup’s latest annual Consumption Habits poll indicates that cannabis consumption remains at historically high levels in the United States, while cigarette use continues to decline.

Seventeen percent of U.S. adults report that they currently smoke cannabis, matching the record high recorded in 2023 and more than doubling the 7% reported when Gallup first measured the behavior in 2013. Cannabis use is most prevalent among younger adults, with 23% of those ages 18 to 29 and 25% of those ages 30 to 49 reporting cannabis smoking, compared with 5% among adults 65 and older.

Edibles also remain widely used, with 15% of adults reporting consumption, up from 12% in 2024.

At the same time, Americans remain nearly evenly divided over the overall effect of cannabis on users, with 47% viewing its impact as positive and 46% as negative.

The findings, based on Gallup’s July 2026 survey, underscore the continued normalization of cannabis consumption and the growing relevance of alternative product formats such as edibles within the broader U.S. consumer market.

Enforcement evolution. More than 200,000 people were arrested for cannabis possession in the United States in 2025, according to the FBI’s latest annual crime data, underscoring the continued gap between expanding state-level legalization and federal and local cannabis enforcement.

The FBI recorded 200,960 cannabis possession arrests, up from 187,792 in 2024, while another 17,192 people were arrested for allegedly selling or growing cannabis. Cannabis-related arrests represented roughly one-quarter of all drug arrests, with possession accounting for 92% of cannabis cases.

Although the year-over-year increase is notable, cannabis arrests have generally declined over the past decade as more states have legalized and regulated adult use. The data may not reflect the full scope either, as roughly 13% of state and local law-enforcement agencies did not report data for 2025, meaning the FBI’s figures do not capture every arrest nationwide.

The figures nevertheless underscore the continued role of cannabis in drug-related law enforcement, even as federal officials consider rescheduling.

Arkansas: Proposed new rules would require medical cannabis businesses to disclose and obtain approval for management contracts, aiming to increase transparency.

Illinois: The medical cannabis program has expanded to include two additional qualifying conditions, bringing the total number of eligible conditions to 58.

Maryland: Local communities are deciding how to use $131 million in cannabis tax revenue, including potential funding for housing assistance, job training, and reentry programs for formerly incarcerated residents.

Massachusetts: Former Cannabis Control Commission chair Shannon O’Brien is suing Treasurer Deb Goldberg and the commission, alleging whistleblower retaliation and other violations; Goldberg’s office calls the claims baseless and a rehash of previously litigated disputes.

Missouri: Cannabis sales hit a record $139.19 million in July, up 7.37% from June and 7.35% year-over-year, driven by adult-use sales while medical sales continued to decline.

New Mexico: The legal cannabis market has surpassed $2.35 billion in sales, underscoring the industry’s rapid growth since recreational cannabis became legal in 2022.

Tennessee: A ban on THCA and other smokable hemp products has caused hemp-tax revenue to plunge more than 90%, putting the state on pace for an estimated $110 million budget shortfall this fiscal year.

U.S. Eagle Federal Credit Union sunsetting cannabis operations

The New Mexico-based financial institution will shut down its cannabis banking division in November after seven years, citing growing competition and industry consolidation; it hasn’t ruled out returning to the market at a later date as the industry transforms.

JARS Cannabis agrees to acquire Sonoran Roots

The Arizona cannabis operator has signed an agreement to acquire the competing vertically integrated cannabis company, adding eight dispensaries to create the state’s largest retail network with 27 locations while expanding cultivation, production, wholesale, and distribution capabilities.

Kiva Sales & Service and Petalfast complete combination

The two cannabis sales, marketing, and distribution platforms have finalized their merger, creating a larger California-based operation with expanded distribution services, a broader brand roster, and plans to enter New York and New Jersey.

Vireo Growth grabs C21 Investments

The multi-state cannabis operator has closed its purchase of the vertically integrated Nevada cannabis company, adding three dispensaries and approximately 104,000 square feet of cultivation and production capacity to strengthen its Nevada footprint.

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The Pre Roll Team

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