diff --git a/tests/core/block/e2e/test_correctness.py b/tests/core/block/e2e/test_correctness.py
index 8502eab0f8da0..e0dee43f500a0 100644
--- a/tests/core/block/e2e/test_correctness.py
+++ b/tests/core/block/e2e/test_correctness.py
@@ -183,7 +183,7 @@ def test_v1_v2_greedy_equality_with_cow(baseline_llm_generator,
 
             # Allow only 2 sequences of ~128 tokens in worst case.
             # Note 16 = 128/block_size
-            "num_gpu_blocks_override": 2 * (16 + 1),
+            "num_gpu_blocks_override": 2 * (16 + 2),
         }
     ])
 @pytest.mark.parametrize("baseline_llm_kwargs", [{
diff --git a/tests/core/test_scheduler.py b/tests/core/test_scheduler.py
index 4ca2260b5e017..447e8f8a586f6 100644
--- a/tests/core/test_scheduler.py
+++ b/tests/core/test_scheduler.py
@@ -1,13 +1,12 @@
 import time
 from collections import deque
-from typing import Deque, List, Set, Tuple
+from typing import List, Set, Tuple
 from unittest.mock import MagicMock
 
 import pytest  # noqa
 
 from vllm.config import CacheConfig, LoRAConfig, SchedulerConfig
 from vllm.core.interfaces import AllocStatus
-from vllm.core.policy import PolicyFactory
 from vllm.core.scheduler import Scheduler, SchedulingBudget
 from vllm.lora.request import LoRARequest
 from vllm.sequence import Logprob, SequenceGroup, SequenceStatus
@@ -348,10 +347,10 @@ def test_prefill_schedule_max_prompt_len():
     """
     scheduler = initialize_scheduler(max_model_len=30)
     _, seq_group = create_dummy_prompt("0", prompt_length=60)
-    waiting = deque([seq_group])
+    scheduler.add_seq_group(seq_group)
     budget = create_token_budget()
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 1
     assert len(output.seq_groups) == 0
     assert budget.num_batched_tokens == 0
@@ -364,15 +363,14 @@ def test_prefill_schedule_token_budget():
     Test token budget respected.
     """
     scheduler = initialize_scheduler()
-    waiting: Deque[SequenceGroup] = deque()
     budget = create_token_budget(token_budget=0)
     for i in range(2):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
-        waiting.append(seq_group)
+        scheduler.add_seq_group(seq_group)
 
     # 0 token budget == nothing is scheduled.
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 0
     assert budget.num_batched_tokens == 0
@@ -381,8 +379,8 @@ def test_prefill_schedule_token_budget():
 
     # 60 token budget == 1 request scheduled.
     budget = create_token_budget(token_budget=60)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 1
     assert budget.num_batched_tokens == 60
@@ -391,14 +389,13 @@ def test_prefill_schedule_token_budget():
 
     # Test when current_batched_tokens respected.
     scheduler = initialize_scheduler()
-    waiting = deque()
     budget = create_token_budget(token_budget=60)
     add_token_budget(budget, 30, 0)
     _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
     # Cannot schedule a prompt that doesn't fit the budget.
-    waiting.append(seq_group)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    scheduler.add_seq_group(seq_group)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 0
     assert budget.num_batched_tokens == 30
@@ -406,8 +403,8 @@ def test_prefill_schedule_token_budget():
     assert len(remaining_waiting) == 1
     budget = create_token_budget(token_budget=90)
     add_token_budget(budget, 30, 0)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.seq_groups) == 1
     assert budget.num_batched_tokens == 90
     assert budget.num_curr_seqs == 1
@@ -419,13 +416,12 @@ def test_prefill_schedule_max_seqs():
     Test max seq respected.
     """
     scheduler = initialize_scheduler()
-    waiting: Deque[SequenceGroup] = deque()
     budget = create_token_budget(max_num_seqs=2)
     for i in range(3):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
-        waiting.append(seq_group)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+        scheduler.add_seq_group(seq_group)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 2
     assert budget.num_batched_tokens == 120
@@ -433,13 +429,13 @@ def test_prefill_schedule_max_seqs():
     assert len(remaining_waiting) == 1
 
     # Verify curr_num_seqs respected.
-    waiting = deque()
+    scheduler.waiting = deque()
     budget = create_token_budget(max_num_seqs=2)
     add_token_budget(budget, 0, 2)
     _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
-    waiting.append(seq_group)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    scheduler.add_seq_group(seq_group)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 0
     assert budget.num_batched_tokens == 0
@@ -453,7 +449,6 @@ def test_prefill_schedule_max_lora():
     """
     lora_config = LoRAConfig(max_lora_rank=8, max_loras=1)
     scheduler = initialize_scheduler(lora_config=lora_config)
-    waiting: Deque[SequenceGroup] = deque()
     budget = create_token_budget(token_budget=120)
     curr_loras: Set[int] = set()
     for i in range(2):
@@ -463,7 +458,7 @@ def test_prefill_schedule_max_lora():
                                                lora_name=str(i),
                                                lora_int_id=i + 1,
                                                lora_path="abc"))
-        waiting.append(seq_group)
+        scheduler.add_seq_group(seq_group)
     # Add two more requests to verify lora is prioritized.
     # 0: Lora, 1: Lora, 2: regular, 3: regular
     # In the first iteration, index 0, 2 is scheduled.
@@ -471,10 +466,10 @@ def test_prefill_schedule_max_lora():
     # prioritized. Verify that.
     for i in range(2, 4):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
-        waiting.append(seq_group)
+        scheduler.add_seq_group(seq_group)
     # Schedule 2 requests (0 and 2)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, curr_loras)
+    output = scheduler._schedule_prefills(budget, curr_loras)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 2
     assert budget.num_batched_tokens == 120
@@ -485,8 +480,8 @@ def test_prefill_schedule_max_lora():
     # Reset curr_loras so that it can be scheduled.
     curr_loras = set()
     budget = create_token_budget(token_budget=60)
-    remaining_waiting, output = scheduler._schedule_prefills(
-        remaining_waiting, budget, curr_loras)
+    output = scheduler._schedule_prefills(budget, curr_loras)
+    remaining_waiting = scheduler.waiting
     assert len(output.seq_groups) == 1
     assert output.seq_groups[0].seq_group.request_id == "1"
     assert len(remaining_waiting) == 1
@@ -499,31 +494,29 @@ def test_prefill_schedule_no_block_manager_capacity():
     Test sequence cannot be scheduled due to block manager has no capacity.
     """
     scheduler = initialize_scheduler()
-    waiting: Deque[SequenceGroup] = deque()
     budget = create_token_budget()
     for i in range(3):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
-        waiting.append(seq_group)
+        scheduler.add_seq_group(seq_group)
     scheduler.block_manager.can_allocate = MagicMock()
     scheduler.block_manager.can_allocate.return_value = AllocStatus.LATER
-    remainig_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 0
     assert len(output.seq_groups) == 0
     assert budget.num_batched_tokens == 0
     assert budget.num_curr_seqs == 0
-    assert len(remainig_waiting) == 3
+    assert len(remaining_waiting) == 3
 
     scheduler = initialize_scheduler()
-    waiting = deque()
     budget = create_token_budget()
     for i in range(3):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
-        waiting.append(seq_group)
+        scheduler.add_seq_group(seq_group)
     scheduler.block_manager.can_allocate = MagicMock()
     scheduler.block_manager.can_allocate.return_value = AllocStatus.NEVER
-    remaining_waiting, output = scheduler._schedule_prefills(
-        waiting, budget, None)
+    output = scheduler._schedule_prefills(budget, None)
+    remaining_waiting = scheduler.waiting
     assert len(output.ignored_seq_groups) == 3
     assert len(output.seq_groups) == 0
     assert budget.num_batched_tokens == 0
@@ -536,14 +529,12 @@ def test_decode_schedule_preempted():
     Test decodes cannot be scheduled and preempted.
     """
     scheduler = initialize_scheduler()
-    running: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     for i in range(3):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60)
         scheduler._allocate_and_set_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
-        running.append(seq_group)
+        scheduler._add_seq_group_to_running(seq_group)
     scheduler.block_manager.can_append_slots = MagicMock()
 
     def cannot_append_second_group(seq_group, num_lookahead_slots):
@@ -555,8 +546,8 @@ def cannot_append_second_group(seq_group, num_lookahead_slots):
     # 1 cannot be scheduled, and the lowest priority (request 2)
     # should be preempted. 1 will also be preempted.
     budget = create_token_budget()
-    remainig_running, output = scheduler._schedule_running(
-        running, budget, curr_loras, policy)
+    output = scheduler._schedule_running(budget, curr_loras)
+    remainig_running = scheduler.running
     assert len(remainig_running) == 0
     assert len(output.decode_seq_groups) == 1
     assert len(output.prefill_seq_groups) == 0
@@ -577,14 +568,12 @@ def test_decode_swap_beam_search():
     Test best_of > 1 swap out blocks
     """
     scheduler = initialize_scheduler()
-    running: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     budget = create_token_budget()
     for i in range(3):
         _, seq_group = create_dummy_prompt(str(i), prompt_length=60, best_of=2)
         scheduler._allocate_and_set_running(seq_group)
-        running.append(seq_group)
+        scheduler._add_seq_group_to_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
         budget.add_num_seqs(seq_group.request_id,
                             seq_group.get_max_num_running_seqs())
@@ -603,8 +592,8 @@ def cannot_append_second_group(seq_group, num_lookahead_slots):
     expected_swap_mapping = [("5", "7")]
     scheduler.block_manager.swap_out.return_value = expected_swap_mapping
 
-    remainig_running, output = scheduler._schedule_running(
-        running, budget, curr_loras, policy)
+    output = scheduler._schedule_running(budget, curr_loras)
+    remainig_running = scheduler.running
     assert len(remainig_running) == 0
     assert len(output.decode_seq_groups) == 2
     assert len(output.prefill_seq_groups) == 0
@@ -628,20 +617,18 @@ def test_schedule_decode_blocks_to_copy_update():
     """
     scheduler = initialize_scheduler()
     _, seq_group = create_dummy_prompt("1", prompt_length=60, best_of=2)
-    running: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     scheduler._allocate_and_set_running(seq_group)
     append_new_token_seq_group(60, seq_group, 1)
-    running.append(seq_group)
+    scheduler._add_seq_group_to_running(seq_group)
 
     # The last request should be swapped out.
     scheduler.block_manager.append_slots = MagicMock()
     scheduler.block_manager.append_slots.return_value = [(2, 3)]
 
     budget = create_token_budget()
-    remaining_running, output = scheduler._schedule_running(
-        running, budget, curr_loras, policy)
+    output = scheduler._schedule_running(budget, curr_loras)
+    remaining_running = scheduler.running
     assert len(remaining_running) == 0
     assert len(output.decode_seq_groups) == 1
     assert len(output.prefill_seq_groups) == 0
@@ -656,19 +643,17 @@ def test_schedule_decode_blocks_to_copy_update():
 
 def test_schedule_swapped_simple():
     scheduler = initialize_scheduler()
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     blocks_to_swap_out: List[Tuple[int, int]] = []
     _, seq_group = create_dummy_prompt("1", prompt_length=60, best_of=2)
     scheduler._allocate_and_set_running(seq_group)
     append_new_token_seq_group(60, seq_group, 1)
     scheduler._swap_out(seq_group, blocks_to_swap_out)
-    swapped.append(seq_group)
+    scheduler._add_seq_group_to_swapped(seq_group)
 
     budget = create_token_budget()
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 0
     assert budget.num_batched_tokens == 1
     assert budget.num_curr_seqs == 2
@@ -683,8 +668,6 @@ def test_schedule_swapped_simple():
 
 def test_schedule_swapped_max_token_budget():
     scheduler = initialize_scheduler()
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     blocks_to_swap_out: List[Tuple[int, int]] = []
     for _ in range(2):
@@ -692,11 +675,11 @@ def test_schedule_swapped_max_token_budget():
         scheduler._allocate_and_set_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
         scheduler._swap_out(seq_group, blocks_to_swap_out)
-        swapped.append(seq_group)
+        scheduler._add_seq_group_to_swapped(seq_group)
 
     budget = create_token_budget(token_budget=1)
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 1
     assert budget.num_batched_tokens == 1
     assert budget.num_curr_seqs == 2
@@ -706,8 +689,8 @@ def test_schedule_swapped_max_token_budget():
     # Verify num_batched_tokens are respected.
     budget = create_token_budget(token_budget=1)
     add_token_budget(budget, 1, 0)
-    remaining_swapped, output = scheduler._schedule_swapped(
-        remaining_swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 1
     assert budget.num_batched_tokens == 1
     assert budget.num_curr_seqs == 0
@@ -717,8 +700,6 @@ def test_schedule_swapped_max_token_budget():
 
 def test_schedule_swapped_max_seqs():
     scheduler = initialize_scheduler()
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     blocks_to_swap_out: List[Tuple[int, int]] = []
     for i in range(4):
@@ -726,11 +707,11 @@ def test_schedule_swapped_max_seqs():
         scheduler._allocate_and_set_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
         scheduler._swap_out(seq_group, blocks_to_swap_out)
-        swapped.append(seq_group)
+        scheduler._add_seq_group_to_swapped(seq_group)
 
     budget = create_token_budget(max_num_seqs=2)
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 2
     assert budget.num_batched_tokens == 2
     assert budget.num_curr_seqs == 2
@@ -738,8 +719,8 @@ def test_schedule_swapped_max_seqs():
     assert len(output.prefill_seq_groups) == 0
 
     # Verify num_curr_seqs are respected.
-    remaining_swapped, output = scheduler._schedule_swapped(
-        remaining_swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 2
     assert budget.num_batched_tokens == 2
     assert budget.num_curr_seqs == 2
@@ -750,8 +731,6 @@ def test_schedule_swapped_max_seqs():
 def test_schedule_swapped_max_loras():
     lora_config = LoRAConfig(max_lora_rank=8, max_loras=1)
     scheduler = initialize_scheduler(lora_config=lora_config)
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras: Set[int] = set()
     blocks_to_swap_out: List[Tuple[int, int]] = []
     for i in range(2):
@@ -764,11 +743,11 @@ def test_schedule_swapped_max_loras():
         scheduler._allocate_and_set_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
         scheduler._swap_out(seq_group, blocks_to_swap_out)
-        swapped.append(seq_group)
+        scheduler._add_seq_group_to_swapped(seq_group)
 
     budget = create_token_budget()
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 1
     assert budget.num_batched_tokens == 1
     assert budget.num_curr_seqs == 1
@@ -779,8 +758,6 @@ def test_schedule_swapped_max_loras():
 
 def test_schedule_swapped_cannot_swap_in():
     scheduler = initialize_scheduler()
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     blocks_to_swap_out: List[Tuple[int, int]] = []
     for _ in range(2):
@@ -788,15 +765,15 @@ def test_schedule_swapped_cannot_swap_in():
         scheduler._allocate_and_set_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
         scheduler._swap_out(seq_group, blocks_to_swap_out)
-        swapped.append(seq_group)
+        scheduler._add_seq_group_to_swapped(seq_group)
 
     # The last request should be swapped out.
     scheduler.block_manager.can_swap_in = MagicMock()
     scheduler.block_manager.can_swap_in.return_value = AllocStatus.LATER
     # Since we cannot swap in, none of the requests are swapped in.
     budget = create_token_budget()
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 2
     assert budget.num_batched_tokens == 0
     assert budget.num_curr_seqs == 0
@@ -806,8 +783,6 @@ def test_schedule_swapped_cannot_swap_in():
 
 def test_infeasible_swap():
     scheduler = initialize_scheduler()
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     blocks_to_swap_out: List[Tuple[int, int]] = []
     for _ in range(2):
@@ -815,15 +790,15 @@ def test_infeasible_swap():
         scheduler._allocate_and_set_running(seq_group)
         append_new_token_seq_group(60, seq_group, 1)
         scheduler._swap_out(seq_group, blocks_to_swap_out)
-        swapped.append(seq_group)
+        scheduler._add_seq_group_to_swapped(seq_group)
 
     # The last request should be swapped out.
     scheduler.block_manager.can_swap_in = MagicMock()
     scheduler.block_manager.can_swap_in.return_value = AllocStatus.NEVER
     # Since we cannot swap in, none of the requests are swapped in.
     budget = create_token_budget()
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 0
     assert len(output.infeasible_seq_groups) == 2
     assert budget.num_batched_tokens == 0
@@ -834,23 +809,21 @@ def test_infeasible_swap():
 
 def test_schedule_swapped_blocks_to_copy():
     scheduler = initialize_scheduler()
-    swapped: Deque[SequenceGroup] = deque()
-    policy = PolicyFactory.get_policy(policy_name="fcfs")
     curr_loras = None
     _, seq_group = create_dummy_prompt("1", prompt_length=60, best_of=2)
     scheduler._allocate_and_set_running(seq_group)
     append_new_token_seq_group(60, seq_group, 1)
     blocks_to_swap_out: List[Tuple[int, int]] = []
     scheduler._swap_out(seq_group, blocks_to_swap_out)
-    swapped.append(seq_group)
+    scheduler._add_seq_group_to_swapped(seq_group)
 
     # The last request should be swapped out.
     scheduler.block_manager.append_slots = MagicMock()
     scheduler.block_manager.append_slots.return_value = [(2, 3)]
 
     budget = create_token_budget()
-    remaining_swapped, output = scheduler._schedule_swapped(
-        swapped, budget, curr_loras, policy)
+    output = scheduler._schedule_swapped(budget, curr_loras)
+    remaining_swapped = scheduler.swapped
     assert len(remaining_swapped) == 0
     assert len(output.decode_seq_groups) == 1
     assert len(output.prefill_seq_groups) == 0
diff --git a/vllm/core/policy.py b/vllm/core/policy.py
deleted file mode 100644
index a4463ac0f340e..0000000000000
--- a/vllm/core/policy.py
+++ /dev/null
@@ -1,45 +0,0 @@
-from collections import deque
-from typing import Deque
-
-from vllm.sequence import SequenceGroup
-
-
-class Policy:
-
-    def get_priority(
-        self,
-        now: float,
-        seq_group: SequenceGroup,
-    ) -> float:
-        raise NotImplementedError
-
-    def sort_by_priority(
-        self,
-        now: float,
-        seq_groups: Deque[SequenceGroup],
-    ) -> Deque[SequenceGroup]:
-        return deque(
-            sorted(
-                seq_groups,
-                key=lambda seq_group: self.get_priority(now, seq_group),
-                reverse=True,
-            ))
-
-
-class FCFS(Policy):
-
-    def get_priority(
-        self,
-        now: float,
-        seq_group: SequenceGroup,
-    ) -> float:
-        return now - seq_group.metrics.arrival_time
-
-
-class PolicyFactory:
-
-    _POLICY_REGISTRY = {'fcfs': FCFS}
-
-    @classmethod
-    def get_policy(cls, policy_name: str, **kwargs) -> Policy:
-        return cls._POLICY_REGISTRY[policy_name](**kwargs)
diff --git a/vllm/core/scheduler.py b/vllm/core/scheduler.py
index 5cdf1d15c31e1..11d020be0c940 100644
--- a/vllm/core/scheduler.py
+++ b/vllm/core/scheduler.py
@@ -8,7 +8,6 @@
 
 from vllm.config import CacheConfig, LoRAConfig, SchedulerConfig
 from vllm.core.interfaces import AllocStatus, BlockSpaceManager
-from vllm.core.policy import Policy, PolicyFactory
 from vllm.logger import init_logger
 from vllm.lora.request import LoRARequest
 from vllm.prompt_adapter.request import PromptAdapterRequest
@@ -345,6 +344,16 @@ def add_seq_group(self, seq_group: SequenceGroup) -> None:
         # Add sequence groups to the waiting queue.
         self.waiting.append(seq_group)
 
+    def _add_seq_group_to_running(self, seq_group: SequenceGroup) -> None:
+        # Add sequence groups to the running queue.
+        # Only for testing purposes.
+        self.running.append(seq_group)
+
+    def _add_seq_group_to_swapped(self, seq_group: SequenceGroup) -> None:
+        # Add sequence groups to the swapped queue.
+        # Only for testing purposes.
+        self.swapped.append(seq_group)
+
     def abort_seq_group(self, request_id: Union[str, Iterable[str]]) -> None:
         """Aborts a sequence group with the given ID.
 
@@ -398,32 +407,26 @@ def get_and_reset_finished_requests_ids(self) -> List[str]:
 
     def _schedule_running(
         self,
-        running_queue: deque,
         budget: SchedulingBudget,
         curr_loras: Optional[Set[int]],
-        policy: Policy,
         enable_chunking: bool = False,
-    ) -> Tuple[deque, SchedulerRunningOutputs]:
+    ) -> SchedulerRunningOutputs:
         """Schedule sequence groups that are running.
 
         Running queue should include decode and chunked prefill requests.
 
         Args:
-            running_queue: The queue that contains running requests (i.e.,
-                decodes). The given arguments are NOT in-place modified.
             budget: The scheduling budget. The argument is in-place updated
                 when any decodes are preempted.
             curr_loras: Currently batched lora request ids. The argument is
                 in-place updated when any decodes are preempted.
-            policy: The sorting policy to sort running_queue.
             enable_chunking: If True, seq group can be chunked and only a
                 chunked number of tokens are scheduled  if
                 `budget.num_batched_tokens` has not enough capacity to schedule
                 all tokens.
     
         Returns:
-            A tuple of remaining running queue (should be always 0) after
-            scheduling and SchedulerRunningOutputs.
+            SchedulerRunningOutputs.
         """
         # Blocks that need to be swapped or copied before model execution.
         blocks_to_swap_out: List[Tuple[int, int]] = []
@@ -436,10 +439,9 @@ def _schedule_running(
 
         # NOTE(woosuk): Preemption happens only when there is no available slot
         # to keep all the sequence groups in the RUNNING state.
-        # In this case, the policy is responsible for deciding which sequence
-        # groups to preempt.
-        now = time.time()
-        running_queue = policy.sort_by_priority(now, running_queue)
+
+        running_queue = self.running
+
         while running_queue:
             seq_group = running_queue[0]
             num_running_tokens = self._get_num_new_tokens(
@@ -503,7 +505,7 @@ def _schedule_running(
                 if curr_loras is not None and seq_group.lora_int_id > 0:
                     curr_loras.add(seq_group.lora_int_id)
 
-        return running_queue, SchedulerRunningOutputs(
+        return SchedulerRunningOutputs(
             decode_seq_groups=decode_seq_groups,
             prefill_seq_groups=prefill_seq_groups,
             preempted=preempted,
@@ -515,12 +517,10 @@ def _schedule_running(
 
     def _schedule_swapped(
         self,
-        swapped_queue: deque,
         budget: SchedulingBudget,
         curr_loras: Optional[Set[int]],
-        policy: Policy,
         enable_chunking: bool = False,
-    ) -> Tuple[deque, SchedulerSwappedInOutputs]:
+    ) -> SchedulerSwappedInOutputs:
         """Schedule sequence groups that are swapped out.
 
         It schedules swapped requests as long as it fits `budget` and
@@ -528,20 +528,16 @@ def _schedule_swapped(
         `budget` and `curr_loras` are updated based on scheduled seq_groups.
 
         Args:
-            swapped_queue: The queue that contains swapped out requests.
-                The given arguments are NOT in-place modified.
             budget: The scheduling budget. The argument is in-place updated
                 when any requests are swapped in.
             curr_loras: Currently batched lora request ids. The argument is
                 in-place updated when any requests are swapped in.
-            policy: The sorting policy to sort swapped_queue.
             enable_chunking: If True, seq group can be chunked and only a
                 chunked number of tokens are scheduled  if
                 `budget.num_batched_tokens` has not enough capacity to schedule
                 all tokens.
 
         Returns:
-            A tuple of remaining swapped_queue after scheduling and
             SchedulerSwappedInOutputs.
         """
         # Blocks that need to be swapped or copied before model execution.
@@ -549,10 +545,10 @@ def _schedule_swapped(
         blocks_to_copy: List[Tuple[int, int]] = []
         decode_seq_groups: List[ScheduledSequenceGroup] = []
         prefill_seq_groups: List[ScheduledSequenceGroup] = []
-        now = time.time()
-        swapped_queue = policy.sort_by_priority(now, swapped_queue)
         infeasible_seq_groups: List[SequenceGroup] = []
 
+        swapped_queue = self.swapped
+
         leftover_swapped: Deque[SequenceGroup] = deque()
         while swapped_queue:
             seq_group = swapped_queue[0]
@@ -617,7 +613,7 @@ def _schedule_swapped(
 
         swapped_queue.extendleft(leftover_swapped)
 
-        return swapped_queue, SchedulerSwappedInOutputs(
+        return SchedulerSwappedInOutputs(
             decode_seq_groups=decode_seq_groups,
             prefill_seq_groups=prefill_seq_groups,
             blocks_to_swap_in=blocks_to_swap_in,
@@ -644,11 +640,10 @@ def _get_prompt_limit(self, seq_group: SequenceGroup) -> int:
 
     def _schedule_prefills(
         self,
-        waiting_queue: deque,
         budget: SchedulingBudget,
         curr_loras: Optional[Set[int]],
         enable_chunking: bool = False,
-    ) -> Tuple[deque, SchedulerPrefillOutputs]:
+    ) -> SchedulerPrefillOutputs:
         """Schedule sequence groups that are in prefill stage.
 
         Note that the current scheduler treats PREEMPTED_FOR_RECOMPUTE
@@ -660,8 +655,6 @@ def _schedule_prefills(
         `budget` and `curr_loras` are updated based on scheduled seq_groups.
 
         Args:
-            waiting_queue: The queue that contains prefill requests.
-                The given arguments are NOT in-place modified.
             budget: The scheduling budget. The argument is in-place updated
                 when any requests are scheduled.
             curr_loras: Currently batched lora request ids. The argument is
@@ -672,14 +665,12 @@ def _schedule_prefills(
                 all tokens.
 
         Returns:
-            A tuple of remaining waiting_queue after scheduling and
             SchedulerSwappedInOutputs.
         """
         ignored_seq_groups: List[SequenceGroup] = []
         seq_groups: List[SequenceGroup] = []
-        # We don't sort waiting queue because we assume it is sorted.
-        # Copy the queue so that the input queue is not modified.
-        waiting_queue = deque([s for s in waiting_queue])
+
+        waiting_queue = self.waiting
 
         leftover_waiting_sequences: Deque[SequenceGroup] = deque()
         while self._passed_delay(time.time()) and waiting_queue:
@@ -758,7 +749,7 @@ def _schedule_prefills(
         if len(seq_groups) > 0:
             self.prev_prompt = True
 
-        return waiting_queue, SchedulerPrefillOutputs(
+        return SchedulerPrefillOutputs(
             seq_groups=seq_groups,
             ignored_seq_groups=ignored_seq_groups,
             num_lookahead_slots=self._get_num_lookahead_slots(is_prefill=True))
@@ -785,53 +776,43 @@ def _schedule_default(self) -> SchedulerOutputs:
             seq_group.lora_int_id for seq_group in self.running
             if seq_group.lora_int_id > 0) if self.lora_enabled else None
 
-        remaining_waiting, prefills = (self.waiting,
-                                       SchedulerPrefillOutputs.create_empty())
-        remaining_running, running_scheduled = (
-            self.running, SchedulerRunningOutputs.create_empty())
-        remaining_swapped, swapped_in = (
-            self.swapped, SchedulerSwappedInOutputs.create_empty())
+        prefills = SchedulerPrefillOutputs.create_empty()
+        running_scheduled = SchedulerRunningOutputs.create_empty()
+        swapped_in = SchedulerSwappedInOutputs.create_empty()
 
         # If any requests are swapped, prioritized swapped requests.
         if not self.swapped:
-            remaining_waiting, prefills = self._schedule_prefills(
-                self.waiting, budget, curr_loras, enable_chunking=False)
+            prefills = self._schedule_prefills(budget,
+                                               curr_loras,
+                                               enable_chunking=False)
 
-        fcfs_policy = PolicyFactory.get_policy(policy_name="fcfs")
         # Don't schedule decodes if prefills are scheduled.
         # NOTE: If `_schedule_prefills` doesn't enable chunking, self.running
         # only contains decode requests, not chunked prefills.
         if len(prefills.seq_groups) == 0:
-            remaining_running, running_scheduled = self._schedule_running(
-                self.running,
-                budget,
-                curr_loras,
-                fcfs_policy,
-                enable_chunking=False)
+            running_scheduled = self._schedule_running(budget,
+                                                       curr_loras,
+                                                       enable_chunking=False)
 
             # If any sequence group is preempted, do not swap in any sequence
             # group. because it means there's no slot for new running requests.
             if len(running_scheduled.preempted) + len(
                     running_scheduled.swapped_out) == 0:
-                remaining_swapped, swapped_in = self._schedule_swapped(
-                    self.swapped, budget, curr_loras, fcfs_policy)
+                swapped_in = self._schedule_swapped(budget, curr_loras)
 
         assert (budget.num_batched_tokens <=
                 self.scheduler_config.max_num_batched_tokens)
         assert budget.num_curr_seqs <= self.scheduler_config.max_num_seqs
 
         # Update waiting requests.
-        self.waiting = remaining_waiting
         self.waiting.extendleft(running_scheduled.preempted)
         # Update new running requests.
-        self.running = remaining_running
         self.running.extend([s.seq_group for s in prefills.seq_groups])
         self.running.extend(
             [s.seq_group for s in running_scheduled.decode_seq_groups])
         self.running.extend(
             [s.seq_group for s in swapped_in.decode_seq_groups])
         # Update swapped requests.
-        self.swapped = remaining_swapped
         self.swapped.extend(running_scheduled.swapped_out)
         preempted = (len(running_scheduled.preempted) +
                      len(running_scheduled.swapped_out))
@@ -877,42 +858,32 @@ def _schedule_chunked_prefill(self):
         )
         curr_loras: Set[int] = set()
 
-        remaining_waiting, prefills = (self.waiting,
-                                       SchedulerPrefillOutputs.create_empty())
-        remaining_running, running_scheduled = (
-            self.running, SchedulerRunningOutputs.create_empty())
-        remaining_swapped, swapped_in = (
-            self.swapped, SchedulerSwappedInOutputs.create_empty())
+        prefills = SchedulerPrefillOutputs.create_empty()
+        swapped_in = SchedulerSwappedInOutputs.create_empty()
 
         # Decoding should be always scheduled first by fcfs.
-        fcfs_policy = PolicyFactory.get_policy(policy_name="fcfs")
-        remaining_running, running_scheduled = self._schedule_running(
-            self.running,
-            budget,
-            curr_loras,
-            fcfs_policy,
-            enable_chunking=True)
+        running_scheduled = self._schedule_running(budget,
+                                                   curr_loras,
+                                                   enable_chunking=True)
 
         # Schedule swapped out requests.
         # If preemption happens, it means we don't have space for swap-in.
         if len(running_scheduled.preempted) + len(
                 running_scheduled.swapped_out) == 0:
-            remaining_swapped, swapped_in = self._schedule_swapped(
-                self.swapped, budget, curr_loras, fcfs_policy)
+            swapped_in = self._schedule_swapped(budget, curr_loras)
 
         # Schedule new prefills.
-        remaining_waiting, prefills = self._schedule_prefills(
-            self.waiting, budget, curr_loras, enable_chunking=True)
+        prefills = self._schedule_prefills(budget,
+                                           curr_loras,
+                                           enable_chunking=True)
 
         assert (budget.num_batched_tokens <=
                 self.scheduler_config.max_num_batched_tokens)
         assert budget.num_curr_seqs <= self.scheduler_config.max_num_seqs
 
         # Update waiting requests.
-        self.waiting = remaining_waiting
         self.waiting.extendleft(running_scheduled.preempted)
         # Update new running requests.
-        self.running = remaining_running
         self.running.extend([s.seq_group for s in prefills.seq_groups])
         self.running.extend(
             [s.seq_group for s in running_scheduled.decode_seq_groups])
@@ -923,7 +894,6 @@ def _schedule_chunked_prefill(self):
         self.running.extend(
             [s.seq_group for s in swapped_in.prefill_seq_groups])
         # Update swapped requests.
-        self.swapped = remaining_swapped
         self.swapped.extend(running_scheduled.swapped_out)
         return SchedulerOutputs(
             scheduled_seq_groups=(prefills.seq_groups +