When the Controlled Substances Act was signed in 1970, it put marijuana in Schedule I, the strictest federal category, and adult-use marijuana is still there. That listing still shapes cannabis in Michigan, from how dispensaries are taxed to why you shouldn't carry cannabis across state lines. Here's how the law works and what has changed as of October 2026.
What the Controlled Substances Act does
President Nixon signed the act on October 27, 1970, as part of a larger federal drug law. It sorts drugs into five schedules and ties federal controls and penalties to each one. States can legalize cannabis under their own laws, but they can't change the federal list, and that gap explains a lot.
The five schedules and what they mean
The statute sets three findings for each schedule. The first two are always potential for misuse and accepted medical use in this country. The third is a lack of accepted safety under medical supervision for Schedule I and the risk of dependence for the rest.
| Schedule | Potential for misuse | Accepted medical use? | Third finding |
|---|---|---|---|
| I | High | No | Lacks accepted safety even under medical supervision |
| II | High | Yes, sometimes with severe restrictions | Dependence can be severe |
| III | Lower than I and II | Yes | Moderate or low physical, or high psychological, dependence |
| IV | Low compared with III | Yes | Limited dependence compared with III |
| V | Low compared with IV | Yes | Limited dependence compared with IV |
The original lists put heroin and LSD in Schedule I and cocaine in Schedule II.
1970: the Controlled Substances Act, marijuana and Schedule I
Congress listed marijuana in Schedule I in the text of the law itself, so federal law regarded the plant as having a high potential for misuse and no accepted medical use. Changing that takes new legislation or a formal federal rescheduling process, and marijuana stayed in Schedule I for more than five decades.
The 1972 commission report and why its advice went unheeded
President Nixon appointed the National Commission on Marihuana and Drug Abuse, known as the Shafer Commission after its chairman, Raymond P. Shafer. Its 1972 report, Marihuana: A Signal of Misunderstanding, recommended moving away from criminal penalties for personal use and discouraging use in other ways.
The administration didn't follow it. The report landed less than a year after the President called drug abuse "public enemy number one," and policy kept moving toward enforcement. Our War on Drugs history picks up from there, and our look at anti-cannabis propaganda covers the messaging.
Decades of consequences: arrests, research limits, banking and tax rules
- Arrests: at the peak, hundreds of thousands of marijuana arrests a year.
- Research: Schedule I research runs under its own federal rules, and researchers have said those restrictions kept potent legal-market products out of their studies.
- Taxes: Section 280E of the tax code bars businesses trafficking in Schedule I or II substances from deducting normal expenses.
- Banking: because federal law still prohibits most marijuana sales, banks that serve cannabis businesses take on extra federal reporting duties, even for state-licensed stores.
- Borders: federal law applies across state lines and on federal land.
States go their own way: medical and adult-use laws, Michigan included
Michigan voters approved a medical marijuana program in 2008 and adult-use legalization in 2018, and the state's Cannabis Regulatory Agency licenses the businesses. Our Michigan cannabis law guide covers the state's requirements, and our hemp vs. marijuana explainer shows why hemp follows a separate federal track.
Rescheduling: what has happened and what it would change
- October 2022: the President asked federal officials to review marijuana's scheduling.
- August 2023: federal health officials recommended Schedule III.
- May 2024: the Justice Department proposed Schedule III.
- April 28, 2026: a final federal order moved marijuana covered by a state medical license, and marijuana drugs approved by the FDA, to Schedule III. Everything else, including adult-use, stays in Schedule I.
- Summer 2026: a DEA administrative law judge heard testimony from June 29 to July 15 on moving all marijuana. As of late October 2026, the recommended decision was still pending.
Because 280E covers only Schedules I and II, the April order says state medical licensees are no longer subject to it. Schedule III is still a controlled schedule, so it wouldn't make adult-use sales federally legal. Our rescheduling explainer tracks each step.
What it means for Michigan shoppers today
Michigan stores still check a valid ID before every sale, for adults 21 and older or registered medical patients 18 and older. At High Society, cash works, and other payment options vary by store. And since adult-use marijuana is still Schedule I, don't travel across state lines with cannabis or bring it onto federal land.
