The DEA has approved 900 medical cannabis dispensaries but is closing the door on others

The Drug Enforcement Administration (DEA) The U.S. government has just granted federal approval to more than 900 medical cannabis dispensaries spread across seven states. This is a significant step forward, but one that does not benefit everyone: businesses holding licenses that authorize the sale of both medical and recreational cannabis remain excluded from the program.

This decision, which is part of the cannabis reclassification policy initiated by the Trump administration, marks a new phase in the Federal recognition of medical cannabis in the United States, while maintaining a strict separation from the recreational market.

More than 900 cannabis dispensaries have obtained federal registration

The Department of Justice (DOJ) confirmed that the first round of registrations involved clinics located in Alabama, in Florida, at Mississippi, in the South Dakota, at Texas, in Virginie and in West Virginia.

These authorizations stem from an executive order dated April 23, 2026, which classified certain activities related to medical cannabis under Category III regulations of the U.S. Controlled Substances Act (CSA). This reclassification marks a major shift in U.S. federal policy: it officially recognizes the medical use of cannabis and paves the way for the legal regulation of its production and distribution, under certain conditions.

The Attorney General Todd Blanche presented this initiative as a measure aimed at improving access to medical treatment, particularly for patients suffering from chronic pain.

«The American people deserve access to the best medical treatments in the world,» Mr. Blanche said.

Unlike state licenses, federal registration requires companies to meet additional DEA requirements, including background checks, security measures, inventory controls, and record-keeping obligations.

Nearly 7,000 additional clinics and manufacturers are reported to have filed an application for registration. Manufacturers and distributors are subject to increased oversight, including, in particular, inspections of their facilities and production checks.

Minnesota's dual-use cannabis licenses may be rejected at the federal level

While these registrations represent a step forward for some operators in the medical sector, the DEA has explicitly rejected applications from companies located in states that allow combined licenses for medical and recreational cannabis.

According to Marijuana Moment, the agency reported In-Store, a Minneapolis-based cannabis retailer, that the framework for’Minnesota licensing did not meet the requirements for federal registration.

The DEA argued that the «state’s dual-use cannabis license, which authorizes both medical and non-medical distribution, does not meet the recently enacted definition of a “state medical license.”».

Federal authorities argue that allowing companies to distribute cannabis for recreational purposes under a single license would conflict with the CSA and the United States’ obligations under international treaties. Several MSOs—these cannabis giants that operate in multiple U.S. states—, have already spun off their operations «recreational» aspects of medical activities.

The agency also expressed concerns about Minnesota’s medical cannabis regulations, particularly the provisions allowing eligible veterans to access treatment without a written medical certificate. The DEA also cited the state’s authorization of certain hemp-derived cannabinoid products as an obstacle.

A Growing Gap Between the Medical and Recreational Cannabis Markets

The federal government’s approach creates a regulatory distinction between states that maintain separate systems for medical cannabis and those that integrate medical and adult-use activities.

The seven states that have received initial registrations prohibit the sale of cannabis for recreational purposes, although the Virginia has passed legislation allowing sales to adults without having yet established a retail licensing system.

At the same time, states such as Minnesota and the Missouri, where the medical and recreational markets coexist, are facing uncertainty. The Minnesota Office of Cannabis Management has explained that the DEA’s decision does not invalidate existing state programs.

«Medical cannabis remains available to patients in the state,» the agency said.

For companies excluded from federal registration, the consequences could extend beyond mere regulatory recognition. They also risk missing out on potential federal tax benefits and legal protections related to the reclassification of cannabis.

Federal cannabis reform remains limited

Despite these records, the’The Trump administration did not legalize recreational cannabis at the federal level. Activities outside the medical context remain subject to Class I restrictions, and federal authorities, of course, continue to crack down on illegal trafficking.

A separate administrative proceeding by the DEA is still considering a broader reclassification of cannabis, leaving the sector’s long-term regulatory future up in the air.

For now, Washington’s new framework provides federal recognition to a limited segment of the’U.S. medical cannabis industry, further complicating the relationship between state legalization policies and federal drug laws.