WASHINGTON DC — The federal government spent the opening day of historic marijuana rescheduling hearings Monday making arguments that would have been almost unimaginable just a few years ago: cannabis has accepted medical use, carries lower abuse potential than drugs in Schedule I and II, and presents a lower overdose risk than opioids and alcohol.
The hearing, held at DEA headquarters in Arlington, Va., is part of an expedited federal process to determine whether marijuana more broadly should move from Schedule I to Schedule III under the Controlled Substances Act. The hearing began June 29 and is scheduled to conclude no later than July 15, with a July 3-6 recess.
For Michigan, the timing is deeply ironic.
Just as Washington is preparing to formally recognize marijuana’s medical value, Michigan’s once-booming medical marijuana market has nearly disappeared.
According to the Michigan Cannabis Regulatory Agency, licensed medical marijuana facilities reported just $322,350 in sales during May. By comparison, Michigan consumers purchased nearly $258 million worth of recreational marijuana during the same month, putting the state’s cannabis industry on pace for another year of more than $3 billion in sales.
That means more than 99.8 percent of Michigan’s regulated cannabis sales now come from the adult-use market.
Federal Government Builds The Safety Case
One of Monday’s key witnesses was Dominic Chiapperino of the Food and Drug Administration’s controlled-substance staff.
According to Marijuana Moment and Cannabis Business Times, Chiapperino defended the federal scientific review supporting Schedule III treatment, including findings that marijuana has accepted medical use, lower abuse potential than Schedule I and II drugs, and lower overdose risk than opioids and alcohol.
Another witness, Dr. Corey Burchman, a New Hampshire anesthesiologist, testified about using cannabis with pain patients, including as an alternative to opioids.
For decades, the federal government argued marijuana had no accepted medical use and belonged in Schedule I, the same category as heroin. Monday’s testimony showed how dramatically the government’s position has shifted.
This Does Not Legalize Recreational Marijuana
The hearing does not federally legalize recreational marijuana.
That point is critical for consumers and cannabis businesses to understand.
Earlier this year, the Justice Department issued an order moving FDA-approved cannabis products and state-licensed medical cannabis into Schedule III. But all other cannabis, including recreational marijuana, remains federally illegal unless the broader rescheduling process now underway is completed.
In plain English: medical cannabis has received federal recognition, but adult-use marijuana has not.
That matters enormously in Michigan, where adult-use sales dominate the market.
Michigan’s Medical Market Has Nearly Vanished
Michigan voters approved medical marijuana in 2008, eventually creating one of the nation’s largest patient programs with roughly 350,000 registered cardholders.
But after recreational marijuana became legal, consumers steadily migrated away from the medical system. They no longer needed physician certifications, registry cards or annual renewals to purchase cannabis.
The result is a medical market that now represents only a tiny fraction of Michigan cannabis sales.
Michigan Cannabis: Then And Now
Category Figure Medical marijuana approved 2008 Peak medical marijuana cardholders ~350,000 Medical marijuana sales, May 2026 $322,350 Adult-use marijuana sales, May 2026 Nearly $258 million Adult-use share of sales More than 99.8%
Ohio Could Feel Rescheduling Differently
The federal shift could play out very differently across the border in Ohio.
Ohio has a much larger active medical marijuana structure than Michigan, and many dispensaries operate as dual-use facilities serving both registered medical patients and recreational customers.
That means federal recognition of marijuana’s medical use could have more immediate practical significance in Ohio than in Michigan, where the medical market has largely faded.
Michigan operators still have a major stake in the broader rescheduling fight. If marijuana as a whole is moved to Schedule III, cannabis businesses expect potential relief from IRS Section 280E, which currently prevents businesses trafficking in Schedule I or II substances from deducting ordinary expenses. But the timing, scope and tax guidance remain issues for follow-up reporting.
For now, the clearest distinction is this: Ohio’s active dual-use system may benefit more directly from medical cannabis recognition, while Michigan’s much larger adult-use industry must wait to see whether broader rescheduling reaches recreational sales.
What Happens Next
The DEA hearing is scheduled to run through July 15. Administrative Law Judge Derek Julius will compile the hearing record, which will help determine whether the federal government’s broader Schedule III proposal can survive legal challenges.
Opponents are expected to challenge the rule, meaning the process may continue in federal court even after the hearing concludes.
Still, opening day marked a historic moment in U.S. drug policy.
For the first time in modern federal cannabis history, government witnesses spent the day defending—not denying—the medical value of marijuana.
For Michigan, that recognition arrives almost 18 years after voters approved medical cannabis, and after most consumers have already moved on to the recreational market.
