Marijuana Reclassified To Schedule III Drug, Duggan: Tax Cut Possible

(Source: MIRS.news, Published 04/23/2026) President Donald Trump’s acting attorney general signed an order reclassifying state-licensed medical marijuana as a less-dangerous drug.

The order doesn’t legalize medical or recreational marijuana use under federal law, but it does change how it’s regulated, shifting it from a Schedule I drug to a Schedule III.

The order, in accordance with Trump’s December executive order Increasing Medical Marijuana and Cannabidiol Research, also gives licensed medical marijuana operators a major tax break and eases some barriers to researching cannabis.

The administration will consider broader changes, including a formal reclassification of cannabis at the federal level, at a June 29 hearing.

The Michigan Cannabis Industry Association applauded the move, saying rescheduling state-licensed medical cannabis “is a move in the right direction.”

Independent gubernatorial candidate Mike Duggan applauded the “long-overdue move” and urged the Legislature to "move immediately to align state law with this new federal change, which will have the effect of cutting certain federal taxes by about 70 percent.

“For many, that is the difference between surviving and shutting down,” Duggan said. “We can deliver real tax relief, protect jobs and treat the industry with fairness.”