Vermont's Medical-Only cannabis dispensary licensing is now paused as state regulators refine the rules governing how these specialized businesses operate. The decision came during the Cannabis Control Board’s (CCB) July 30 meeting and is intended to ensure fair, consistent, and sustainable growth in the state’s cannabis market.
This pause in Vermont's Medical-Only licensing follows an earlier halt in new retail cannabis approvals, which has been in effect since October. Regulators are currently developing new siting and credentialing guidelines to prevent market saturation and to address loopholes that could allow some businesses to bypass fair competition.
The Vermont Legislature has empowered the CCB to create a medical use endorsement program for retailers. These endorsements allow participating businesses to sell medical-grade cannabis products and provide services that regular recreational retailers cannot offer. Board member Kyle Harris noted that roughly 15 to 16 retailers have already expressed strong interest in obtaining Vermont's Medical-Only endorsements, with more than 100 new medical card applications filed in recent days.
Harris expressed optimism for Vermont's Medical-Only expansion, saying the program “hopefully explodes.” He added that the pause will allow the board to assess whether certain parts of the state are underserved by medical cannabis providers.
According to CCB general counsel Gabe Gilman, Vermont's Medical-Only program could significantly improve patient access. “We’ve gone from the tiny handful everybody was really worried about to having a potential 100-plus additional sites for medical patients to obtain medical products,” Gilman said. The board’s long-term goal is to merge the medical and retail systems into one unified framework to reduce inefficiency and eliminate parallel systems that create unnecessary costs.
One reason for pausing Vermont's Medical-Only licensing now is concern that an operator could secure a single license and then open multiple locations under one fee, potentially undermining the intent of the program.
Legislators appear open to integrating Vermont's Medical-Only dispensaries into a unified cannabis regulatory system. This approach could streamline operations, cut down on administrative burdens, and ensure patients have access to consistent, high-quality products across the state.
Although Vermont's Medical-Only dispensary network has been relatively small in the past, the endorsement program has the potential to dramatically expand patient access—especially in rural areas that have historically been underserved. For now, the pause is intended as a short-term measure to strengthen the system before a wave of new businesses enters the market.