DEA registers 900 Texas and state marijuana dispensaries

The Drug Enforcement Administration issued federal registrations to more than 900 state-licensed medical marijuana dispensaries on Friday. The Department of Justice confirmed the move in a statement, listing Alabama, Florida, Mississippi, South Dakota, Texas, Virginia, and West Virginia as the states where these businesses operate. The agency has not yet published the names of the specific companies that received approval.

This action marks the first time the DEA has registered medical marijuana dispensaries under the new federal rules. Attorney General Todd Blanche signed an order in April to move state-licensed medical marijuana from Schedule I to Schedule III. Schedule I includes drugs with no accepted medical use and a high potential for abuse, such as heroin. Schedule III subjects substances to less strict regulation. Blanche stated in the Friday release that regulated distribution from these locations helps ensure broader access to chronic pain treatment and protects public safety.

The reclassification changed how federal tax law applies to the industry. For years, state-licensed cannabis companies could not deduct ordinary business expenses, such as rent, advertising, and labor costs, from their federal taxes. This was because the drug was classified as illegal at the federal level. Many in the sector described this tax treatment as financially devastating. The new registration process is expected to allow these businesses to claim those standard deductions, reducing their tax burden.

The DEA published a list on Friday showing that nearly 7,000 other cannabis dispensers, manufacturers, and distributors across the country have also applied for registration. The new system requires companies to pass a pre-registration investigation and maintain specific security and inventory controls. These safeguards align with the rules governing other Schedule III substances.

Steph Sherer, founder of the organization Americans for Safe Access, noted that the registrations came just days before the 30th anniversary of California becoming the first state to legalize medical marijuana. Sherer said in a statement that the federal government is finally recognizing dispensaries that patients worked to establish. She called the move a major victory for patient access and a chance to build on three decades of progress.

Questions remain about how the DEA will regulate these businesses in practice. State laws often allow people with certain criminal histories to run licensed marijuana businesses, a flexibility that federal regulators may or may not adopt. It is also unclear how the agency will treat companies that handle both recreational and medical cannabis. Many states have merged their recreational and medical industries, and the Trump administration has attempted broader reclassification, but the specific rules for adult-use cannabis are still being defined.

Chris Lindsey, vice president of policy and state advocacy for the American Cannabis and Hemp Trade Association, described the development as a positive step. He noted that the industry is now waiting to see what specific operational requirements the DEA will impose on companies operating in this new category.