Nebraska tribe moving forward with medical marijuana, despite state pushback
By Grant Winterer, All Things Considered host Nebraska Public Media
March 2, 2026, 6 a.m. ·
The Omaha tribe is moving forward with its plan to bring medical marijuana to the state.
The tribe officially legalized medical and recreational cannabis in July.
Since then, it has faced pushback from the state over a tobacco tax compact. The tribe and state disagree about how to best split tax dollars from tobacco sales.
The tribe is asking for 90% of tax revenue from tobacco sold on the reservation; other tribes receive 75%.
Nebraska Gov. Jim Pillen has also weighed in, holding up those negotiations due to his opposition to medical and recreational marijuana on tribal land. A bill has been introduced in the legislature this session to push the issue forward.
The Omaha Tribe’s Attorney General John Cartier said that focusing on building and operating a cannabis dispensary would go a long way toward alleviating some of the financial concerns if tobacco money dries up.
“While that would be hundreds of thousands of dollars in revenue from the tobacco tax compact side,” he reasoned, “we’re talking millions, tens of millions of dollars in revenue from the medical cannabis side.
“So when you’re comparing those numbers, it’s obvious which is going to be better for the tribe long term.”
Cartier added that the tribe’s focus will first be on medical marijuana, leaving recreational sales for a later date. He said the shift from tobacco to medical marijuana is a big one for the tribe’s image into the future.
“There’s also something to be said for instead of working in the tobacco industry, which has killed hundreds of thousands of people, shifting to specifically medical cannabis, which heals people and gives them the relief they need," he said.
The plans for medical marijuana on the reservation include a dispensary and testing facility, which would be the first in Nebraska.
Cartier said that building the infrastructure alone would create sorely needed jobs for those living on the reservation and in Thurston County.
“Any sort of industry that we can create jobs with is instrumental in the success of the tribe moving forward,” Cartier said. “So a cannabis operation requires, at the size we’re looking at, at least a hundred jobs. That right there is going to be a massive economic boon not just for the workers, but through the revenue we generate, to tribal members.”
The reservation is currently dealing with an estimated 60% unemployment rate.
Cartier said development of the dispensary, cultivation and testing facility is well underway, and anticipates the tribe will have it up and running by the end of 2026.