Drug Testing Group And Pharma Firm Ask Court To Halt US Marijuana Rescheduling Push

A drug-testing trade group and a pharmaceutical company are urging a federal appeals court to freeze the Trump administration's marijuana rescheduling effort while litigation proceeds, warning that "marijuana abuse has dangerous, lifelong consequences—especially for adolescents and pregnant women." The Thursday filing argues that reduced taxes on cannabis firms "will stimulate the industry and increase marijuana abuse." The brief responds to a Department of Justice filing opposing a stay motion from the National Drug and Alcohol Screening Association (NDASA) and MMJ International Holdings. DOJ had argued the challengers hold mere "pocketbook interests served by keeping all marijuana in schedule I" and aren't intended beneficiaries of the Controlled Substances Act. The groups called that argument a "meritless diversion," insisting standing doesn't require being an "intended beneficiary" of the CSA. The U.S. Court of Appeals for the D.C. Circuit is reviewing three consolidated suits against moving marijuana from Schedule I to Schedule III: one from Smart Approaches to Marijuana (SAM) and NDASA; another from anti-marijuana activists, doctors and a biopharmaceutical firm; and a third from the attorneys general of Indiana and Nebraska (Louisiana withdrew). NDASA claims new costs for medical review officers verifying legitimate THC use "will force some to go out of business," and that testing price hikes could expose employers to Americans with Disabilities Act liability. MMJ argues rescheduling erases its "first-mover advantage," built on "eight years of hard work and $10 million of investment" toward FDA-approved cannabis medicine, by legitimizing untested state-market competitors. The filing calls the rescheduling rule unlawful for skipping formal rulemaking, calling it an "egregious violation" of federal law, and says "the public interest plainly supports a stay." The filing follows the DEA's conclusion of hearing testimony on rescheduling, with the presiding judge outlining next steps toward a recommendation. Acting Attorney General Todd Blanche's April order already reclassified state-licensed medical marijuana and FDA-approved cannabis products to Schedule III; a separate order triggered the broader hearing. Two medical marijuana companies have sought to intervene defending the government's position, opposed by SAM and NDASA. SAM's suit was filed by Torridon Law PLLC, where former Attorney General William Barr is a partner; SAM announced hiring the firm in January. The House Appropriations Committee voted to block further rescheduling steps, though bipartisan lawmakers said in an interview they doubt the measure will succeed. Separately, a related lawsuit by SAM, MMJ and others challenging Medicare coverage of hemp-derived products was dismissed in May and is now under appeal.