This has been a whirlwind year in Washington, D.C., with the inauguration of President Donald Trump and the swearing in of a new Republican majority in the U.S. Senate. The “Republican trifecta” of the House, Senate, and administration has led to stalled progress with cannabis legalization, specifically the effort to reschedule cannabis from Schedule I to Schedule III.

In 2023, the Biden administration set the ball rolling on rescheduling cannabis by asking for an analysis and recommendation from the Department of Health and Human Services and the Drug Enforcement Administration. HHS subsequently recommended that cannabis be rescheduled to Schedule III, and in 2024, the DEA published a notice of proposed rulemaking moving cannabis from Schedule I to Schedule III. However, the DEA process to finalize the rule has been stalled since January, with no particular movement in sight.

Fast forward to today: The federal government has been operating under a lapse of appropriations and has been shut down since October 1. Trump has mentioned in statements that his administration is “looking at” reclassifying cannabis and has posted to social media about it, but federal agencies have shown very little momentum on rescheduling. With midterm elections on the horizon, 2026 will be an interesting year for policymaking in D.C. Many are questioning whether the administration will undertake rescheduling, as it could be considered a hot-button political issue. If we know anything about the Trump administration, however, it is that it keeps everyone guessing.

Ohio’s Legal Medical Marijuana and Adult-Use Cannabis: What Is the Status, and What Changes Could Be on the Horizon?

We are nearly two years out from the effective date of Issue 2, the voter-initiated statute that legalized adult-use marijuana in Ohio in November of 2023 through the enactment of Chapter 3780 of the Ohio Revised Code. The statute became effective on December 7, 2023, and legal adult-use sales commenced in August 2025. Since that time, the state has seen over $900 million in adult-use sales.

Some key metrics for the program to date include:

• 24 active Level I (large) cultivation licenses
• 15 active Level II (small) cultivation licenses
• 46 active processing licenses
• 6 active testing labs
• 179 active dispensary licenses (with an additional 109 in development)

The Division of Cannabis Control is actively engaged in the rulemaking process to implement regulations pursuant to Chapter 3780. This process, initially scheduled to be completed by September 7, 2024 —just one year after the statute’s effective date —is now nearing completion. As part of this process, the DCC recently approved the sale of pre-rolls in licensed marijuana dispensaries in the state, a major milestone for the program. Until this time, marijuana flower was not permitted to be consumed through combustion in Ohio, dating back to the beginning of Ohio’s medical marijuana program in 2017. Rules Package 7, which addresses testing standards among other items, is expected to be released for industry stakeholder feedback within the next several weeks.

Recently, the Ohio House passed Sub Bill 56, a comprehensive overhaul of Ohio’s regulatory framework for adult-use marijuana, hemp, and intoxicating hemp products, consolidating oversight under the state’s Division of Cannabis Control and Department of Agriculture.

The bill would make the following changes to the existing adult-use marijuana law in Ohio:

• Transfer adult-use marijuana regulation from repealed Chapter 3780 to an expanded Chapter 3796 (the existing law that legalized medical marijuana).
• Establish unified licensing, enforcement, and operational standards for medical, adult-use, and homegrown marijuana.
• Address potency limitations for marijuana concentrates.
• Limit delivery of licensed marijuana products to medical patients only.
• Retain the home-grow limits of six plants per person and 12 plants per household; clarify the legality of homegrown marijuana for adults 21 and over; and enact possession, transfer, and transportation restrictions applicable to homegrown marijuana.
• Cap the total number of licensed marijuana dispensaries in the state at 400 and retain the cap on ownership of licensed marijuana dispensaries at eight.
• Clarify transportation, packaging, and consumption rules for marijuana and marijuana paraphernalia.
• Revise licensing procedures for licensed cannabis businesses.
• Update patient and caregiver rights for medical marijuana.
• Expand the enforcement authority of the Department of Public Safety and the Ohio Investigative Unit to assist in the enforcement of adult-use and medical marijuana laws.

The bill also contemplates comprehensive updates to the state’s management of hemp and intoxicating hemp products.

The bill now goes to the Ohio Senate, where it is expected to be met with some objection. The bill will then likely go to a conference committee, where the two chambers will attempt to reach a consensus on what should be included in a final version of the bill.

Key Cases Affecting Ohio’s Cannabis Landscape and Other Cannabis Litigation Updates

 Ancient Roots LLC, et al. v. Ohio Division of Cannabis Control

On September 17, a group of Ohio dual-use licensed cannabis cultivators, processors, and dispensaries brought suit against the DCC. The plaintiffs argue that DCC guidance regarding packaging, advertising, and new product approvals for Ohio’s dual-use licensees was adopted without authority and without following proper rulemaking procedures under Ohio law. The suit asks the court to declare the DCC’s advertising and product-approval rules invalid and to prevent the DCC from issuing any new guidance unless it follows the proper rulemaking steps.

The plaintiffs also filed a motion for a temporary restraining order seeking to immediately halt the contested rules. The DCC opposed the motion for a temporary restraining order by challenging the court’s ability to hear the case altogether. The DCC argued that dual-use licensees, like the plaintiffs in this case, agreed that the DCC alone has the power to handle licensing, make rules, and decide discipline when they signed their dual-use agreements. Therefore, only the DCC, not the courts, can resolve disputes about those rules.

The court denied the motion for a temporary restraining order on October 9, finding that the plaintiffs did not meet the legal standards for emergency relief. But the court did, however, express concern that the DCC could not point to an administrative appeal process for the businesses’ complaints about the advertising rules.

The plaintiffs have since filed an amended that clarifies and expands their claims. The DCC filed its opposition to the amended complaint on November 3.

Titan Logistics Group LLC, et al. v. Mike DeWine et al.

On October 8, Ohio Governor Mike DeWine issued Executive Order 2025-05D, requiring intoxicating hemp products to be removed from public display and prohibiting the sale of such products for 90 days. That same day, Titan Logistics Group LLC, along with several other sellers of hemp-derived products, sued to challenge the order. The plaintiffs also filed a motion for a temporary restraining order and preliminary injunction, both of which sought to immediately block the order from going into effect.

On October 14, the court granted a temporary restraining order, which lets sellers keep selling intoxicating hemp products while the lawsuit continues. That order will remain in effect through December 2, when the court will hear argument on the plaintiffs’ motion for preliminary injunction. In the meantime, Executive Order 2025-05D is on pause.

Recent developments in the Ohio legislature, as discussed above, may render this case moot before the court decides the preliminary injunction. If the Ohio Legislature is successful in passing a bill regulating sales of intoxicating hemp products prior to the December 2 hearing, the parties will likely dismiss this lawsuit.

Other Litigation

General business litigation continues to affect Ohio’s licensed cannabis operators. In the past month, disputes have arisen from contracts related to the purchase of companies and assets. Ohio cannabis operators have also seen the beginnings of labor disputes regarding working conditions, pay, and overtime hours.

The end of 2025 and the beginning of 2026 promise more changes in the ever-evolving field of cannabis law. Those working in the market should expect some shifts, but also greater clarity, in Ohio’s cannabis regulations. Legal challenges will also continue to shape the market as regulators and market participants respond to new regulations and their enforcement.

The post The State of Ohio’s Cannabis Legal Landscape appeared first on Cannabis Industry Journal.