On December 18, 2025 the President signed an executive order directing federal agencies to move marijuana from Schedule I to Schedule III under the Controlled Substances Act.

While the headline traveled fast, the details matter far more than the announcement itself, especially for Michigan. This action does not legalize cannabis federally. It does not override Michigan law. It does not eliminate testing requirements or compliance rules.

What it does do is shift the federal government’s posture toward cannabis in a way that could materially affect how Michigan’s legal market operates over the next year.

Sponsored Content
Key Takeaways for Michigan Residents

• Federal marijuana rescheduling is real, but nothing changes at the dispensary counter today. Michigan’s adult use market continues to operate exactly as it did before the announcement.

• The most meaningful impact is not legalization. It is the potential end of punitive federal tax treatment for licensed cannabis businesses once final rules take effect.

• Consumers should expect gradual change in 2026, not overnight disruption. Better research access, stronger compliance expectations, and a more financially stable legal market are the likely outcomes.

• Any claim that cannabis is now federally legal or that banks are suddenly rushing in is inaccurate at this stage.

Major Changes expected for the Michigan Marijuana Market

Federal action to move marijuana toward Schedule III status marked a pivotal moment for Michigan’s cannabis market, signaling a shift toward medical legitimacy and regulatory normalization without changing day-to-day legality for consumers.

While marijuana remains Schedule I until final federal rules take effect, the move has major long-term implications for Michigan operators, particularly around federal tax treatment, research access, and business stability.

Stability in the short term, followed by gradual market maturation, increased research credibility, and stronger emphasis on compliant, licensed cannabis operations.

For Michigan consumers, the practical takeaway is: Stability in the short term, followed by gradual market maturation, increased research credibility, and stronger emphasis on compliant, licensed cannabis operations.

Media coverage shows broad agreement that the change does not equal federal legalization, instant banking access, or immediate price shifts, but it does indicate a meaningful change in direction that could reshape the industry throughout 2026.

What Is Actually in Effect Right Now

The executive order instructs the Attorney General to advance the administrative rulemaking process required to change marijuana’s federal schedule. That process is real, but it is not instantaneous.

As of today, marijuana remains a Schedule I substance under federal law. Michigan’s Cannabis Regulatory Agency publicly reinforced this point within 24 hours of the announcement, making it clear that state enforcement and compliance expectations remain unchanged until a final federal rule is issued and effective.

The next true milestone is not another headline. It is the publication of a final rule with an effective date. That is when real operational consequences begin.

Under current law, cannabis operators are subject to Internal Revenue Code 280E, which prevents many standard business deductions.

Why Schedule III Matters More Than It Sounds

For Michigan businesses, the biggest implication of Schedule III is federal tax treatment. Under current law, cannabis operators are subject to Internal Revenue Code 280E, which prevents many standard business deductions.

This results in effective tax rates that can cripple otherwise successful companies. If marijuana is ultimately treated as Schedule III for federal tax purposes, licensed Michigan operators could deduct ordinary business expenses for the first time. That does not fix oversupply or competition, but it does change survival math.

This is why coverage from business outlets focused so heavily on taxation rather than legalization. For operators, this is about cash flow, reinvestment, and staying alive in a difficult market.

What Consumers Should Expect in Michigan

For now, your buying experience does not change. Products are still tracked. Testing still matters. Licensed dispensaries remain the only legal place to purchase adult use cannabis in Michigan.

Over time, if tax pressure eases, consumers may see increased investment in quality, consistency, and product variety. Brands with strong compliance records and stable operations are better positioned to innovate when margins are no longer strangled by federal policy.

Pricing may shift, but not immediately. Michigan’s market realities will still be shaped by supply, demand, and competition far more than by federal headlines in the short term.

If marijuana is ultimately treated as Schedule III for federal tax purposes, licensed Michigan operators could deduct ordinary business expenses for the first time.

What This Means for Michigan’s Cannabis Industry

Rescheduling does not relax compliance expectations. If anything, it raises the bar. As cannabis moves closer to mainstream regulatory treatment, scrutiny increases rather than decreases.

Michigan regulators have been clear that enforcement will continue at current intensity. Businesses that relied on shortcuts or gray areas should not expect relief. Businesses that invested in transparency and process are best positioned for what comes next.

This moment favors stability, patience, and legitimacy. It does not reward hype.

What to Watch Next

The coming months will bring more commentary than clarity. The signals worth paying attention to are administrative, not political.

Watch for the publication of a final federal rule. Watch for IRS guidance. Watch for CRA updates that interpret how federal changes intersect with Michigan’s regulatory framework.

Until those things happen, any claim of instant transformation should be treated with skepticism.

Stay Grounded. Stay Informed. Stay Frosty.

• Michigan’s cannabis market is evolving, not exploding. The direction of travel matters more than the noise.

• If you care about buying clean, tested, compliant cannabis, the advice remains simple. Shop licensed. Follow credible sources. Ignore viral misinformation.

• Glacier will continue tracking regulatory developments and translating what they actually mean for Michigan consumers and the legal market.

• Use our Store Finder to locate Glacier products near you and stay connected as 2026 approaches.

You can count on Glacier to cover the story as it evolves and to always put the customer first when it comes to product quality, purity, and potency.

We’ve always priced our products in a sweet spot between premium and economy. Our products could easily sell at the very top of the shelf and at the same time, we also don’t want to undervalue our amazing product by selling it as cheaply as possible either.

However, when you do nail that perfect balance, it allows you to put all that back into the product to help maintain it’s amazing quality, all while still being able to price it competitively in a range that allows most of the market to participate. It’s chess, not checkers!

We truly care about the Michigan toker as we continue to adapt to market conditions and you can count on us to keep that ethos alive as the Michigan tax becomes effective next year. Any thoughts, questions, or comments, reach out via our Contact Form. We have the healthiest market in the nation with room to grow and adjust.

Get Lost in the Frost!

-Joe ‘Magic Plants’ Montgomery

Glacier Staff

Sources

White House, Presidential Action (December 2025)
https://www.whitehouse.gov/presidential-actions/2025/12/increasing-medical-marijuana-and-cannabidiol-research/

Michigan Cannabis Regulatory Agency Statement (December 19, 2025)
https://www.michigan.gov/lara/news-releases/2025/12/19/dec-19-2025-statement-from-cra-executive-director-brian-hanna

Bridge Michigan Reporting (December 2025)
https://bridgemi.com/business-watch/what-trumps-marijuana-rescheduling-means-for-michigan/

Reuters Analysis (December 19, 2025)
https://www.reuters.com/legal/government/cannabis-companies-face-hurdles-accessing-big-banks-despite-reclassification-2025-12-19/