If you have been scrolling through the news lately, you have likely seen the massive headlines: The President signed an Executive Order on December 18, 2025, directing the Attorney General to move “expeditiously” to reschedule marijuana.
This is a historic moment. Moving cannabis from Schedule I (defined as having no medical use, like heroin) to Schedule III (accepted medical use, like Tylenol with codeine) is the biggest shift in federal drug policy in decades.
But, as with everything in the cannabis world, the devil is in the details. We know there is a lot of confusion out there about whether weed is now “legal” nationwide or if you can fly with it (spoiler: not yet). Based on a recent briefing from the Cannabis Regulators Association (CANNRA), here is the real talk on what Schedule III does—and doesn’t—mean for us in Grand Rapids.
The Big Win: Taxes and Local Survival
The most immediate impact of this change isn’t something you will see on the shelf, but it’s huge for keeping local shops like Pharmhouse Wellness alive.
For years, cannabis businesses have been crushed by a federal tax code called 280E. Under Schedule I, dispensaries cannot deduct standard business expenses—like rent, payroll, or utilities—on their federal taxes. Imagine trying to run a household where you are taxed on your gross income without being allowed to deduct your mortgage!
Moving to Schedule III removes this burden. This allows 100% locally owned shops like ours to operate like normal businesses, reinvest in our community, and keep bringing you the best products Michigan has to offer.
The Reality Check: What Stays the Same (For Now)
While the headlines sound like “legalization,” Schedule III is not the same as full descheduling. Until new rules are written, here is what will not change overnight:
- We Are Not a Pharmacy: Even under Schedule III, recreational dispensaries are not selling FDA-approved drugs. Technically, state-regulated markets like Michigan’s remain “non-compliant” with federal law. You won’t be picking up your pre-rolls at a CVS anytime soon.
- No Interstate Commerce: We still cannot ship our locally grown flower across state lines. Shipping cannabis is still a violation of federal law unless you have specific FDA and DEA approval.
- Drug Testing Persists: If you are a federal employee or work in a “safety-sensitive” job (like trucking or aviation) regulated by the Department of Transportation, don’t celebrate just yet. Drug testing requirements for THC are not automatically removed by rescheduling.
- Banking is Still Tricky: While we hope this encourages banks to work with us, current federal banking guidance remains in place until the Treasury Department says otherwise.
What Happens Next?
The Attorney General has been ordered to move fast, but the government’s definition of “fast” is different from yours and mine. Marijuana technically remains Schedule I until the Department of Justice issues a Final Rule. There could also be litigation or court challenges that slow things down.
At Pharmhouse Wellness, we are optimistic. This is a step forward for legitimacy and a huge win for the sustainability of local businesses. We will keep you updated as the rules are finalized. Until then, we are open, compliant, and ready to serve you right here on Wealthy Street!
