U.S. Justice Department Begins Federal Registration of More Than 900 Medical Cannabis Dispensaries

Key Facts

On October 30, the U.S. Justice Department announced the start of issuing initial federal registrations to more than 900 state-licensed medical cannabis dispensaries, opening a regulated federal path for some eligible medical activities. The first group includes facilities in Alabama, Florida, Mississippi, South Dakota, Texas, Virginia and West Virginia. The department said registrations would be issued in phases and that state licensing alone does not give a dispensary federal registration. Each facility must meet federal requirements and pass a pre-registration investigation conducted by the U.S. Drug Enforcement Administration. The department did not identify the companies that received initial registrations, so the available information does not establish that Trulieve was part of the group.

Trulieve said on April 29 that it had submitted applications to the Drug Enforcement Administration to register its licensed medical operations in Florida, Georgia, Pennsylvania and West Virginia, according to its quarterly report. The company said at the time that it operated more than 200 dispensaries serving medical patients only. In its second-quarter results, it said it operated 207 retail stores and had 3.5 million square feet of cultivation and processing capacity in the United States. The applications show that the company sought registration, but do not confirm that they were accepted or that its locations were included in the department’s initial group. In August, Trulieve reported second-quarter revenue of $271 million, down 10% from $302 million in the same period of 2025. The quarter’s results included Trulieve and Harvest operations through Harvest’s deconsolidation on June 3.

The current path extends from an April 23 order issued by the Justice Department and the Drug Enforcement Administration, which placed FDA-approved products and medical products covered by a qualifying state license in Schedule III. The order established a registration mechanism for facilities handling those products, alongside a separate hearing process to consider broader rescheduling that began on June 29. When Trulieve submitted its applications, it said operators applying within the first 60 days could be deemed to have authorization to manufacture, distribute and dispense medical Schedule III products unless notified otherwise. Chief Executive Kim Rivers described registering the company’s medical businesses with the administration as a "historic step" for the company and the patients it serves. The order remains limited to eligible medical activities; it does not authorize recreational marijuana, and products and activities outside its scope remain subject to Schedule I controls.

Dispensaries that receive registration are subject to federal requirements covering security, recordkeeping, inventory control and other safeguards for handling controlled substances. Attorney General Todd Blanche said regulated distribution of medical marijuana "will help ensure expanded access to chronic pain treatment," while illegal trafficking would continue to be prosecuted. The registrations could have financial significance for operators: The Associated Press reported that state-licensed cannabis companies historically have been unable to deduct ordinary operating expenses, such as rent, labor and advertising, from their federal taxes. The agency did not resolve details of how the Drug Enforcement Administration would apply oversight requirements to registered medical cannabis companies, noting that their regulation differs from that of most companies handling Schedule III substances. The tax and compliance effects of registration therefore remain tied to how the rules are applied to facilities.

Trulieve shares closed at $10.28 on October 30, after session closes declined from $10.82 on October 26 to $10.67 on October 27, $10.62 on October 28 and $10.60 on October 29. Those prices alone do not establish a link between the share movement and the federal registration announcement, which came the same day. Across the sector, the Associated Press said about 7,000 other dispensaries, manufacturers and distributors had applied for registration with the administration. The Drug Enforcement Administration continues to process applications from eligible dispensaries and issue registrations in phases. Applications from producers and distributors face additional review, including facility inspections, production controls and quota-setting. The next milestone in the broader rescheduling process is the continuation of its separate hearings, while the September Job Openings and Labor Turnover report is due on November 3 at 10:00 a.m. Eastern time.