Short answer
Cannabis is illegal under federal law. It sits in Schedule I of the Controlled Substances Act, 21 U.S.C. Section 812. Schedule I is the strictest tier. The Drug Enforcement Administration placed marijuana there in 1970 and Congress left it there. State laws that permit medical or adult use do not change federal law. A person can follow state law and still violate federal law.
What Schedule I means
Schedule I has three criteria: high potential for abuse, no accepted medical use in the United States, and no accepted safety data for use under medical supervision. Federal penalties follow from that tier.
- Simple possession, first offense: up to 1 year in prison and a $1,000 minimum fine under 21 U.S.C. Section 844.
- Manufacture, distribution, or possession with intent to distribute: up to 5 years for small quantities, longer for higher weights and prior convictions.
- Section 280E of the Internal Revenue Code bars businesses that traffic in Schedule I substances from deducting ordinary business expenses.
Hemp is the exception
The Agriculture Improvement Act of 2018 removed hemp from the Controlled Substances Act definition of marijuana. Hemp is cannabis with a delta-9 tetrahydrocannabinol concentration of 0.3 percent or less on a dry weight basis. Hemp is legal at the federal level. Marijuana is not. The two plants are the same species. The legal line is a THC number.
marijuana schedule 1 status and legal challenges
State law versus federal law
As of early 2025, 24 states plus the District of Columbia allow adult use. 38 states plus the District of Columbia run medical cannabis programs. Federal prosecutors have limited resources and prioritize other cases. Since 2014, an appropriations rider has barred the Department of Justice from spending funds to stop states from carrying out medical marijuana programs. The rider does not cover adult use. A 2013 memo known as the Cole Memorandum told prosecutors to leave state-legal programs alone. Then-Attorney General Jeff Sessions withdrew it in January 2018.
Rescheduling status
The Department of Health and Human Services recommended moving marijuana to Schedule III in August 2023. The DEA published a proposed rule on May 21, 2024, at 89 FR 44597. Public comment closed. The DEA then sent the question to an administrative law judge for hearings. The rule is not final. Schedule III requires a prescription, so rescheduling alone would not create a legal adult-use market. It would change tax treatment under 280E and ease some research barriers. Developments after early 2025 are outside what I can confirm here.
Federal status and convenience
Federal illegality shapes how easy cannabis is to buy. State-licensed shops still operate in legal states. Federal law limits the rest of the chain.
- Card networks and most banks stay out because of Bank Secrecy Act and deposit insurance rules. Many shops run on cash.
- Interstate transport is a federal offense, even between two legal states.
- Delivery, curbside pickup, and shop count are set by state and local rules, not by federal policy.
- Federal employees, commercial drivers, and people with security clearances face consequences that state law does not touch.
Cannabis remains a Schedule I controlled substance. Full federal legalization would take an act of Congress.