Trump wants to loosen federal weed laws. Here’s what that actually means for Michigan stoners

Marijuana could soon be reclassified under federal law. It’s a big deal for cannabis businesses and researchers. But for many Michigan consumers, the change may go unnoticed.

MICHIGAN—Weed has been legal in Michigan for years. So, when federal officials start talking about “reclassifying” marijuana, it’s fair to wonder whether any of this stuff actually affects us. 

The short answer is yes—but it’s mostly behind the scenes.

Here’s a quick rundown:

Is weed about to be legal everywhere?

Not quite. But something genuinely historic is happening.

President Donald Trump is expected to sign an order directing federal agencies to reclassify marijuana from Schedule I (the same bucket as heroin) to Schedule III (where drugs like Tylenol with codeine live). And if it happens, it would mark the biggest shift in federal cannabis policy since the 1970s—and finish a process that actually began under the Biden administration.

What does Schedule III actually mean?

Right now, marijuana is classified as a Schedule I drug, which, according to federal law, means it has no accepted medical use and a high potential for abuse. Moving cannabis to Schedule III would officially acknowledge that marijuana does have some medical value and poses less risk than drugs listed in the top tier, which include heroin, LSD, MDMA, and methamphetamine.

Moving a drug to Schedule III would not legalize it nationwide. But it would loosen federal restrictions enough to change how cannabis is taxed, researched, and treated by regulators. 

For Michigan consumers, the change is mostly symbolic. 

But for businesses, it’s a much bigger deal.

What is changing for Michigan businesses?

If you want to understand why cannabis companies are popping champagne over this news, you need to know about IRS rule 280E—the tax rule that’s quietly wrecking weed businesses.

Because marijuana is still considered a Schedule I controlled substance under federal law, rule 280E effectively bans cannabis companies from deducting their normal business expenses on their federal taxes. That means dispensaries in Michigan often pay tax rates north of 70%.

Reclassifying cannabis to Schedule III would effectively kill 280E for marijuana businesses, which would translate into immediate relief for Michigan growers, processors, and retailers who are barely hanging on in an oversaturated market. For some operators, it could be the difference between layoffs and reinvestment, or between closing shop and another year of cheap ounces.

And at the very least, it could help offset a new 24% state wholesale tax taking effect in January. 

Will this matter for Michigan consumers?

The short answer: Not really, at least not right away.

If cannabis moves to Schedule III, Michigan dispensaries would still operate under state law, weed would still be considered illegal at the federal level, and Michiganders still technically couldn’t bring their edibles through TSA—even if nobody’s really checking your gummy stash.

Reclassification also won’t suddenly expand where or how you can buy weed in Michigan. It won’t override local bans. And it won’t make crossing state lines with weed any less illegal.

But over time, Michigan’s cannabis industry might gain a new sense of stability from the tax relief, with fewer dispensary closures, more research into weed as medicine, and—maybe—a more normalized industry that isn’t forced to exist in a weird state of perpetual legal limbo.

The bottom line

Even the biggest cheerleaders for rescheduling admit this is only a partial victory, not the finish line. Reclassification doesn’t fix industry access to banking. It doesn’t allow interstate commerce or create a new, national regulatory framework. And definitely doesn’t end the patchwork of conflicting state and federal laws that cannabis businesses have been navigating for years.

But it does crack the door open to more reform. Once the federal government formally acknowledges that marijuana has medical value, it also becomes harder to justify treating it like contraband forever. That’s why advocates see this as a stepping stone, not a full solution.

READ MORE: 6 quick hits of cannabis news from across Michigan

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