After lawmakers blunted expansion for years, Texas’ medical marijuana industry is slated to see more marijuana operators coming online, current ones opening more facilities, and more Texans enrolling in the program this year.

In September 2025, Texas officially rolled out the most significant expansion of its medical marijuana program, the Texas Compassionate Use Program, since its launch in 2015. The expansion adds new qualifying conditions such as chronic pain, inflammatory bowel disease, Crohn’s disease, traumatic brain injury, and terminal illness. It also added more treatment options like prescribed inhalers, higher THC limits, and better dispensary access across the state. The expansion will also increase the number of marijuana distributors from three to 15.

Lawmakers enacted these changes after distributors in the program said strict state regulations on THC amounts, locations, cultivation, and more hampered the program’s growth and, in fact, contributed to them losing patients to cheaper, more accessible, and diverse hemp products.

“What made TCUP expensive in the past was the fact that you had this niche program with a huge regulatory burden on top of it. Now, as you expand the program, the cost of regulation becomes a smaller percentage, and therefore the marginal cost of products will come down over time,” said Nico Richardson, CEO of Texas Original, a Central Texas medical marijuana company.

The Texas Department of Public Safety reported that by the end of 2025, 135,470 patients were listed in the Compassionate Use Registry by their physicians, about 32% more than the previous year. Distributors are attributing it to the news of the budding expansion.

The law immediately benefits the state’s three dispensing organizations, Texas Original, Goodblend, and Fluent. Since these companies mostly sell their products online, none of them have opened more storefronts yet, but they have created more satellite locations across the state to store their products, allowing products to be cheaper and delivered to customers faster. Before the law, companies would have to return the product to the original dispensary every day, raising overhead costs.

“We are planning to have a satellite location in all 11 public health regions within the next six months,” Richardson said.

Texas Original has also moved from a 7,700-square-foot facility to its new 75,000-square-foot headquarters in Bastrop to cultivate more strains of marijuana and expand their product options.

Austin-based Goodblend has opened its first satellite location in San Antonio that allows for same-day pick-up and plans to expand further into Texas to reach remote locations.

“We are also working on a slew of new products and formats as it relates to vaporization and hopefully have something down the pipe in the next six months,” said Jervonne Singletary, Goodblend’s spokesperson.

And, more medical marijuana operators will soon join the existing three. One of the most heralded parts of the expansion is the addition of 12 licensed dispensing organizations by April 1, as outlined in House Bill 46.

The first phase is underway with DPS awarding nine businesses with conditional licenses. These nine businesses are not authorized to cultivate, manufacture, distribute, or sell any cannabis products until the department grants final approval, said Sheridan Nolen, Texas Department of Public Safety spokesperson.

The dispensing organizations will be assigned a health region. “Additionally, House Bill 46 does not allow dispensing organizations to operate more than one satellite location in a single public health region until they operate at least one satellite location in each public health region,” Nolen said.

Most of these distributors operate in cannabis markets outside of Texas and are expected to leverage existing resources to get a quick start here.

“After being awarded a Conditional Dispensing Organization License in December, we continue to work collaboratively with key stakeholders on all required next steps in the process,” said George Archos, founder and CEO of Chicago-based Vernano, which will serve public health region 10 in West Texas. “…We look forward to putting plants in the ground that are grown in Texas, by Texans, and delivered to patients across the state, in accordance with the law.”

These new marijuana distributors have up to two years after final approval to become fully operational in Texas, but Singletary expects it might be a little after nine months to a year.

She said once those additional businesses get up in running, she expects the prices on medical marijuana products that can range from $40 to $70 to continuously drop based on what she has seen in other states that have undergone an expansion like Florida.

All of these changes are great on paper, but distributors say the one hurdle that is holding the program back from its full potential is the medical providers themselves.

Awareness among medical providers
One of the key cogs of the Texas Compassionate Use Program when it was first created was medical providers, but very few have registered to prescribe medical cannabis, limiting the options Texans have had to enter the program.

Richardson said there are around 80,000 board-certified physicians in Texas, and only 800 are registered in the TCUP program.

“We’re absolutely laser-focused on doctors, because they are really the patients’ first entry point into the program, by asking your physician if you qualify,” Singletary said.

To become registered to prescribe medical cannabis in Texas, a provider must visit the Texas DPS registry portal with their Texas Medical Board license, American Board of Medical Specialties certification, and driver’s license to complete the application.

Among the reasons for the sluggish enrollment is a lack of awareness about the program among medical providers.

Richardson said state agencies have mostly been hands-off in spreading awareness of the program, leaving it up to distributors to boost the number of subscribers.

“That is all we have done for the past seven or eight years is educate doctors on the fact that the program exists. DPS hasn’t had a campaign out there to bring doctors into the program. This has pretty much been a Texas Original effort,” he said.

Also, most medical providers didn’t see a need to register, since most of their patients weren’t eligible.

Matthew Brimberry, an Austin-based doctor and medical director of the Texas Cannabis Clinic, said he didn’t join the state’s medical program until 2019, when the list of qualifying conditions expanded from only those with intractable epilepsy to include terminal cancer.

Other reasons why medical providers are hesitant to join the program include workload and lack of knowledge around the benefits of cannabis.

“It’s another electronic health system portal that you have to register patients into, which can be a hurdle when you are already dealing with so many portals,” Brimberry said. “Also, the nature of the medicine itself, there is not a lot of education on it. Being a medical provider, you aren’t going to recommend something you don’t know about.”

Brimberry said no health field has taken the lead on prescribing medical cannabis, leaving it up to providers who have a specific interest in it to advocate for it.

To get around this problem of having a small pool of providers to choose from, local medical marijuana distributors have been using telemedicine to connect patients with specialized providers across the state, but Singletary said in an ideal world, patients would be visiting any doctor to learn more about medical marijuana.

“I am happy there is an alternative route for folks that might not be comfortable talking to their physician about this. But I want to see more Texas doctors in the program,” she said.

New opportunities
In December, President Donald Trump signed an executive order to expedite the reclassification of marijuana from a Schedule I drug, alongside heroin and LSD, to Schedule III, like ketamine and some steroids.

In 2023, the federal Department of Health and Human Services determined marijuana has acceptable medical use after finding that health care practitioners across 43 jurisdictions are authorized to recommend the medical use of marijuana to more than 6 million registered patients for at least 15 medical conditions.

The rescheduling doesn’t make recreational marijuana legal across the nation. However, it changes how it’s regulated, removing barriers to scientific research and reducing the industry’s tax burden, and improving access to banking services.

“The thawing of the capital market, better banking, and better relationships with the IRS will free up some capital for more investment, create new products, and drive down costs, so this rescheduling, which we still don’t know a lot about yet, is potentially a big opportunity,” Singletary said.

This changing view of marijuana from the Trump administration might also signal the rest of the Republican Party’s warming toward full legalization.

“We finally have a federal government, which is frankly 10 years behind the times right now, recognizing the medical benefits of medical cannabis, and we’ve known this for a long time,” Richardson said. “I think we have reached the point where denying this no longer makes any sense at this point.”

The cannabis industry views the expansion in Republican-led Texas as a model for other Southern states to expand their cannabis programs, and Texas’ large geographic size and economic infrastructure could make the state a national hub for medical marijuana..

“Most of the structural problems of the TCUP program have now been solved. Whether it’s access through satellite locations, it’s better and available products that patients were looking for, just know it’s a viable and growing program right now,” Richardson said.

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This story was originally published by The Texas Tribune and distributed through a partnership with The Associated Press.