What marijuana reclassification means for Illinois

State of play: Federal officials this week took a key step toward reclassifying marijuana to a less restrictive drug category, a shift that would ease tax burdens and expand research opportunities.

• "These actions will enable more targeted, rigorous research into marijuana's safety and efficacy, expanding patients' access to treatments and empowering doctors to make better-informed healthcare decisions," Acting U.S. Attorney General Todd Blanche said in a statement.

What they're saying: "It's probably more symbolic than anything," Grown In founder Brad Spirrison tells Axios.

• "People have been waiting for the federal government to recognize cannabis for its medicinal properties for over 50 years."

Zoom in: This move could give larger corporations access to federal tax deductions they hadn't had previously, Spirrison adds.

• Some industry insiders estimate that marijuana businesses currently face effective tax rates as high as 70%.

Reality check: While the federal government is reclassifying medical-use marijuana, it hasn't moved to reclassify recreational marijuana, which remains a Schedule I drug.

• This means marijuana growers and sellers don't have access to the federal banking system.
• "It's not just banks," Spirrison adds. "Corporations have been wary to transact with the cannabis industry, whether that's special services, accounting, or advertising. If the banks are authorized to do it, everyone will follow."

Zoom out: Illinois recreational-use cannabis retailers sold a record amount of product in 2025, but the state saw a $200 million year-over-year drop in sales revenue.

• Still, revenue was $1.5 billion and the state captured almost $500 million in taxes.

• The drop is attributed to price decreases to meet customer demands and the emerging hemp-derived THC market.

Friction point: Local lawmakers have struggled to enact regulations for the unlicensed THC and hemp products. The city passed an ordinance earlier this year, but Mayor Johnson vetoed it.

• Congress has until the fall to regulate those products or they will become illegal. President Trump is urging Capitol Hill to move quickly.

Flashback: It's been a bumpy ride for the fledgling recreational marijuana industry in Illinois. The state made it legal in 2019, but dispensary licenses were hung up in court with lawsuits over the license lottery.

• The last of the lawsuits is expected to be resolved in May.

What's next: The Trump administration has signaled it will consider reclassifying adult-use recreational marijuana later this year.

• The Department of Justice said its review would begin June 29 and finish by July 15. The result could loosen restrictions on the drug.