Trump seeks to cut restrictions on marijuana through planned order

OG article by Jacob Bogage and Dan Diamond

December 12, 2025

A Michigan judge has denied a request to halt the state's new 24% wholesale cannabis tax, set to begin on January 1, 2026. The Michigan Court of Claims, presided over by Judge Sima G. Patel, rejected preliminary injunction motions from Holistic Research Group, the Michigan Cannabis Industry Association (MCIA), and PF Manufacturing. The court determined that the plaintiffs failed to prove their business harm outweighed public benefits for infrastructure funding. A scheduling conference is planned for January 13, with appeals likely to higher courts. The plaintiffs claimed the tax violates the voter-approved Michigan Regulation and Taxation of Marihuana Act (MRTMA) and the state's Title-Object Clause, arguing laws must have a single purpose. However, Judge Patel ruled the Comprehensive Road Funding Tax Act imposes a separate tax, not amending MRTMA, and aligns with allowances for additional taxes. Industry concerns about driving consumers to illicit markets and straining thin margins were dismissed as speculative. Combined with the existing 10% retail excise tax, this makes Michigan's cannabis among the most heavily taxed in the U.S. MCIA Executive Director Robin Schneider expressed worries that the tax could hinder regulated market growth. Michigan's cannabis sales reached $3.2 billion last year, ranking second nationally behind California, but are now declining amid these challenges.