D.C. Extends Conditional Cannabis Licenses: What Businesses Need to Know

The D.C. Council passed an emergency resolution extending medical cannabis conditional licenses for an additional year. Here’s what cannabis businesses need to know to stay compliant and take advantage of the new timeline.

Understanding the Extension

The Medical Cannabis Conditional Licensure Extension Emergency Declaration Resolution of 2025 (PR26-0294), passed on October 7, 2025, gives D.C. cannabis businesses an extra year to transition from conditional to full licenses. This applies to all medical cannabis sectors – including cultivation centers, retailers, manufacturers, internet retailers, couriers, and testing laboratories – and provides relief for operators facing expiring licenses while still finalizing compliance steps.

Why the Council Took Action

The emergency measure follows a period of rapid change in D.C.’s cannabis market:

- The Alcoholic Beverage and Cannabis Administration (ABCA) and Metropolitan Police Department (MPD) closed 71 unlicensed cannabis establishments as of September 2025.- Legal medical cannabis sales hit a record $5.4 million in April 2025, showing a strong shift toward regulated channels.- The number of licensed retailers grew from 7 to 64 in less than two years. Despite the progress, many conditional licensees faced challenges from raising investment capital to finding suitable properties and completing facility buildouts. These challenges slowed their ability to open fully. Without intervention, numerous conditional licenses would have expired, potentially undermining the city’s expanding legal market.

What the Resolution Does

The new law:- Extends conditional medical cannabis licenses by one additional year, allowing up to three years total for license activation and conversion.- Applies retroactively to June 28, 2025, automatically reactivating licenses that expired after that date.- Takes effect immediately, eliminating any lapse in coverage for current license holders.

What Businesses Should Do Now

This extension provides critical breathing room, but it also reinforces the need for steady progress toward compliance.

Businesses should:1. Verify license status with ABCA to confirm that the new expiration date is reflected in official records.2. Continue building out operations and completing facility inspections to meet regulatory requirements.3. Stay in contact with ABCA regarding the process for converting conditional licenses to full operational licenses.4. Document all compliance steps taken during the extension period in case of future review or audit.

A Strategic Pause for the Industry

The D.C. Council’s emergency action is a clear acknowledgment of both the opportunities and challenges facing the city’s medical cannabis industry. By extending conditional licenses, policymakers are giving legitimate businesses the time they need to open responsibly, strengthen the regulated market, and maintain consumer confidence. For operators, the message is clear: use this extension strategically. With the extra year now in place, there’s a renewed window to secure financing, complete facilities, and ensure full compliance which will set up long-term success in a rapidly maturing marketplace.