Texas Medical Cannabis Market Poised for Growth After Years of Limits

12 January 2026

For much of the past decade, Texas’ medical marijuana program has been defined more by its limits than its reach. That may be changing.

In 2026, the Texas Compassionate Use Program is expanding in ways that state officials and industry operators say could finally make medical cannabis a viable option for more patients across the state. The changes follow the passage of House Bill 46, signed by Gov. Greg Abbott last year, which broadens eligibility, raises allowable THC levels, and significantly increases the number of licensed dispensaries.

The program, launched in 2015, initially served only patients with intractable epilepsy and allowed just three companies to sell very low-THC oil. For years, critics argued those restrictions made the program functionally inaccessible, both for patients seeking relief and for Texas cannabis businesses trying to operate under strict rules.

Under the new framework, qualifying conditions now include chronic pain, traumatic brain injury, inflammatory bowel disease, Crohn’s disease, and terminal illnesses. Patients can access a wider range of products, including inhalers, vaping devices, topical applications, and patches, though smokable flower remains prohibited.

The enrollment is rising. By the end of 2025, more than 135,000 patients were registered, a year-over-year increase of nearly one-third. Even so, enrollment remains low compared with other large states, and industry leaders point to physician participation as a key constraint.

Only about 800 of Texas’ roughly 80,000 board-certified physicians are registered to prescribe medical cannabis. Doctors cite limited education on cannabis, additional administrative steps, and years of narrow eligibility as reasons for staying out of the program. Distributors have turned to telemedicine to help patients connect with registered providers, but say that broader physician awareness could further accelerate growth.

On the supply side, the Department of Public Safety has conditionally approved nine new dispensing organizations, with up to 15 allowed statewide. New entrants include affiliates of national cannabis companies, signaling growing interest in Texas as regulatory barriers ease. Each licensee is assigned to a specific health region, and geographic expansion is staged to ensure statewide coverage.

Existing operators are also expanding. Texas Original recently opened a 75,000-square-foot facility near Austin to increase production capacity, while Goodblend has begun offering same-day pickup in San Antonio and plans additional satellite locations.

Despite these developments, the medical cannabis industry continues to compete with Texas’ vast hemp-derived THC market, which grew rapidly during years of limited “legal marijuana access”. Hemp products remain easier to obtain and often cheaper, though pending state and federal regulations could significantly reshape that sector over the next year.

For patients, the changes mean more conditions qualify, more product options are available, and delivery and pickup may become faster and cheaper over time. For businesses, the expansion offers new opportunities, tempered by regulatory uncertainty and the ongoing challenge of integrating medical cannabis into mainstream health care.