Cultivation sales fall as D.C. medical cannabis market shows signs of slowdown
D.C.’s medical cannabis market showed signs of softening in August, reporting $8.2 million in total sales—an 8% decline from May’s record high. Cultivation sales fell to their second-lowest level of 2025, and manufacturing also slowed, while dispensaries saw modest gains. Vape cartridges surpassed $1 million in revenue for the first time, with concentrates up 78%, even as infused edibles slipped. Federal oversight that began mid-August may be dampening consumer activity, with September data expected to clarify the trend.
D.C. urges dismissal of I-71 cannabis alliance lawsuit
The District of Columbia has filed a motion to dismiss a federal lawsuit brought by the Alliance for Recreational Cannabis Entities, arguing the group lacks the legal standing to sue and that its constitutional challenges are without merit. The lawsuit takes aim at D.C.’s cannabis regulations, but the city’s legal team contends that the Alliance has failed to demonstrate that its members face a “concrete and imminent” injury, a requirement for legal action. The District’s motion also systematically refutes the Alliance’s claims, arguing that the right to a jury trial does not apply to administrative fines, the Dormant Commerce Clause is not relevant to a federally illegal substance, and that warrantless inspections of cannabis businesses are permissible due to the industry being “closely regulated.” A court ruling on the motion is currently pending.
- No ABC Board meeting this week. The next is Oct. 22, 2025: watch, agenda.
- Chocolate City Wellness suspended for 30 Days for illegal cannabis sales
- Oct. 8, 2025 disposition.
- WAMU covered the D.C. cannabis market’s volatility.
- DeLorean 88 LLC, challenged the city’s enforcement actions by arguing that federal law (specifically the 2018 Farm Bill) protected its right to sell hemp. A U.S. District Court judge rejected the claim, ruling that D.C. may enforce its own cannabis regulations independently of the federal statute. However, Capitol Hemp still has a pending case in Superior court.
Maryland market shows early signs of stagnation
In September, Maryland marked a milestone as three social equity licensees—Koan Cannabis (Hagerstown), Elevated Dispo (Salisbury), and Elevated Releaf (Eldersburg)—received operational licenses. To support industry growth, NuProject will host a 3-day hands-on workshop October 17–19 in Anne Arundel County for CEO Accelerator participants, covering operations, compliance, and business strategies. Register here. Meanwhile, courts upheld the state’s cannabis licensing framework, confirmed delta-8 and delta-10 remain illegal, and Q2 tax revenue topped $18.4 million. Despite these gains, the market shows signs of stagnation, with only 0.64% year-over-year sales growth in August, reflecting ongoing regulatory and competitive challenges.
- Applications are now open for new members of the Maryland Cannabis Public Health Advisory Council. Interested applicants can apply online through the Governor’s Appointments Office on a rolling basis.
Virginia cannabis market faces small business challenges
Small cannabis operators in Virginia are raising concerns about being sidelined amid the state’s ongoing regulatory chaos. Public hearings have highlighted tensions between small businesses and larger medical cannabis companies, with questions about fairness, market access, and transparency.
- During a recent debate, Democratic nominee Abigail Spanberger expressed support for legalization and market transparency, while Republican Winsome Earle-Sears raised concerns about employee cannabis use in safety-sensitive roles, warning of potential risks to public safety.
East Coast Roundup
A new bill introduced in North Carolina aims to legalize recreational cannabis, with proponents arguing it could generate significant tax revenue and create jobs, while opponents express concerns about public health and safety.
A Brooklyn, New York dispensary’s announcement of a pigeon-based cannabis delivery service turned out to be an elaborate marketing stunt, amusing some and upsetting animal rights activists.
The Hall of Flowers trade show in New York featured a strong presence of California cannabis brands, highlighting the state’s influence on the East Coast market despite regulatory challenges.
Culture & More
A study by UC San Diego and 23andMe identified genetic links to impulsive behavior and mental health disorders in individuals with cannabis use disorder, suggesting potential targets for future treatments.
A recent poll finds that 61% of Americans consider cannabis a healthier option than alcohol, with a majority expecting nationwide legalization within five years.
Around the Country
A cannabis industry group filed a lawsuit challenging Michigan’s 24% wholesale tax on marijuana, arguing it is unconstitutional and burdensome for businesses.
Nebraska offered licenses to its first medical cannabis cultivators, though legal challenges loom as the state navigates its new cannabis laws.
Colorado sees a surge in popularity of THC-infused beverages, with consumers seeking alternatives to traditional cannabis consumption methods.
From the swamp
Senator Tim Kaine (D-VA) criticized President Trump’s unilateral military actions targeting drug-trafficking boats in the Caribbean, emphasizing that such strikes require congressional authorization and must be legally justified. Listen to the whole interview at Ask a Pol Drugs.
The Supreme Court denied a case regarding gun rights for cannabis consumers but indicates it will review several related cases in the coming weeks.
Senator Elissa Slotkin (D-MI) told Ask a Pol that she has not seriously considered the legal conflict facing Americans who own firearms while using marijuana, a situation that can technically make them felons under federal law. Listen to the whole interview at Ask a Pol Drugs.
