Maryland Waitlist: 142 Cannabis Firms Miss First Federal Round

The Drug Enforcement Administration issued its first federal registrations to more than 900 medical marijuana dispensaries on Friday, October 30. Maryland was not included in this first group. For patients and the 142 Maryland businesses that applied, daily operations continue, but the companies now face a complex timeline to align with new federal rules.

The Justice Department announced the move as the first phase of an order signed by Attorney General Todd Blanche on April 23. That order moved state-licensed medical marijuana from Schedule I to Schedule III of the Controlled Substances Act. The first registrations went to dispensaries in Alabama, Florida, Mississippi, South Dakota, Texas, Virginia, and West Virginia.

The department did not explain why those seven states were selected. It stated that the DEA will continue reviewing applications in phases. Manufacturer and distributor applications require additional steps, including facility inspections and production controls. Applicants had to file within an initial 60-day window, operate under state laws that match federal requirements, and pass a pre-registration investigation.

A DEA applicant list, which the agency updates daily, shows 6,983 applicants nationwide. Maryland holds 142 of those spots. Oklahoma, Florida, and California have the highest numbers. The list does not identify specific companies behind each location.

Maryland medical cannabis patients can still purchase products at dispensaries. The Justice Department said that pending applicants who filed within the 60-day period may continue transactions with other qualified applicants and newly registered businesses. The Maryland Cannabis Administration said state law remains fully operative and unchanged while the federal process proceeds. Medical cannabis has been legal in Maryland since 2014, with the first sales starting in 2017.

Maryland's situation is distinct because it runs both a medical program and an adult-use market. Many businesses hold licenses for both. The federal order covers only medical marijuana. Adult-use cannabis remains in Schedule I. The Maryland Cannabis Administration is evaluating options, including potential split licenses, to help the state's dual-license structure meet federal requirements. The agency has not made a final decision. Businesses that choose not to register with the DEA will not face state action, though they would be barred from buying and selling Schedule III medical cannabis.

The DEA issued separate guidance on Friday requiring businesses to buy and sell Schedule III medical marijuana only with other timely applicants or registered entities. Companies must set up compliant supply chains by November 29. Dealing with others could lead to a denied application or revoked registration. Businesses must verify trading partners and keep records of those checks. They may continue selling inventory acquired before the guidance was issued.

Registration is expected to bring tax benefits because Schedule I status had blocked businesses from deducting ordinary expenses like rent and labor. The Maryland Cannabis Administration said its FAQ indicates medical licensees will not face those deduction disallowances for the 2026 tax year regardless of DEA registration. Treasury guidance is still to come.

Reactions to the April order were mixed. Steph Sherer, founder of Americans for Safe Access, said the federal government is recognizing the dispensaries that patients fought to establish. Maryland Rep. Andy Harris, a Republican, called the move bad policy, stating that rescheduling minimizes the risks of a drug that is more potent and accessible to children.

The DEA has not said when Maryland applicants will be decided. Businesses must meet the November 29 supply-chain deadline. Maryland regulators still need to decide how dual licenses fit federal rules. A separate federal proceeding on broader marijuana rescheduling continues.