President Donald Trump signed an executive order lowering marijuana from a Schedule I to a Schedule III controlled substance. This change comes with the statement, "It opens the door to further research, and further research is going to allow us to know what the benefits are." Tessa Holtsberry, manager of Premier Cannabis – East, said, "Hearing that news is absolutely amazing" and mentioned it will help understand "what the harms are," as reported by WNEM.
Despite marijuana remaining illegal under federal law, its reclassification could affect Michigan’s cannabis market, including potentially lowering some tax burdens. Brian Yono, founder of Hyde Cannabis, said, "We get to operate like a level playing business," according to CBS News Detroit. However, with the state planning a new 24% marijuana tax, some business owners remain uncertain about 2026.
The executive order could advance medical research on marijuana, helping study its effects on conditions like anxiety and PTSD, and may lead to improvements in products for patients with various ailments. It also modifies Section 280-E of the IRS tax code, giving cannabis companies major tax relief.
Nick Hannawa, chief legal counsel at Puff Cannabis Company, said, "Millions and millions of dollars that companies were paying that now they won't have to pay anymore because they will be treated like every other business in this country," as per WXYZ. Despite these changes, banking challenges remain, and some political leaders, including Senators Lummis, Hoeven, and Graham, have expressed reservations about the federal policy shift.
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