Delaware’s Legal Cannabis Rollout Hits Unexpected Federal Snag

Delaware’s plan to launch adult-use cannabis sales this spring just ran into a brick wall — courtesy of the FBI.

Officials confirmed on March 31 that the Federal Bureau of Investigation rejected a key application needed to conduct criminal background checks on individuals entering the state’s legal cannabis industry. Without this approval, regulators can’t legally proceed with fingerprinting — and that’s a problem. A big one.

The Office of the Marijuana Commissioner (OMC), which oversees Delaware’s cannabis rollout, is now scrambling. Lawmakers will need to rewrite parts of state law before the feds will greenlight the fingerprinting process. That means any hopes of sales kicking off in the coming months have officially gone up in smoke.

FBI Says “Not So Fast”

The issue centres on a technical, but vital, detail.

Under Delaware law, anyone seeking a cannabis license must undergo a background check. That includes fingerprinting and criminal history reports — the usual vetting. But to do that, the state needs a special code from the FBI, known as a service code. This code lets Delaware connect its fingerprint system to federal databases.

Here’s where it got messy.

The FBI reviewed Delaware’s revised request and said no — again. The reason? The law, specifically Title 4 of the Delaware Code, doesn’t spell out exactly who needs a background check. The language was too vague, too broad. And the FBI doesn’t do vague.

“After review of the authorizing statute, the FBI advised that Title 4… must contain language explicitly identifying the categories of persons required to obtain a background check,” the OMC said in a statement. “This specificity is necessary to avoid overbreadth.”

One sentence. One requirement. One rejection.

Lawmakers Now Face the Clock

Now, it’s back to the General Assembly.

Regulators will work with lawmakers to fix the problem. But it’s not just a matter of rewriting a paragraph. A new bill needs to be drafted, debated, passed, and signed into law — all before the FBI reconsiders its position.

That’s a tall order for any legislature, especially one already deep into its spring calendar.

A spokesperson for the OMC said their team would move “expeditiously” with legislators to develop a bill the FBI finds acceptable. They didn’t give a timeline, but insiders admit it’s unlikely to happen quickly enough to meet the original sales launch window.

So much for spring.

What’s at Stake?

This delay isn’t just procedural — it’s financial, social, and political.

Cannabis was legalised in Delaware for adult use last year, following a long and politically fraught battle. The market was expected to generate millions in new tax revenue, create hundreds of jobs, and provide long-overdue access for residents who’ve waited years to legally purchase cannabis outside of the state’s medical program.

• Analysts projected over $40 million in annual sales in the first full year of operations
• Tax revenue was expected to hit $8 million to $12 million in year one
• More than 100 new small businesses were expected to enter the market by mid-2025

Now? That timeline just got murky.

Local entrepreneurs hoping to open dispensaries are stuck in limbo. Investors who’ve already sunk capital into real estate, equipment, and staffing are facing mounting uncertainty. And advocates who fought for years to get cannabis legalised are, frankly, frustrated.

“It’s incredibly disappointing,” said one Wilmington-based dispensary hopeful who asked not to be named. “We followed every step, every rule, every regulation. And now it’s just… on hold?”

Delaware’s Cannabis Launch vs. Other States

Here’s how Delaware’s adult-use program now compares to neighbouring states with legal recreational cannabis:

Delaware had hoped to emulate Maryland’s smooth rollout. But unlike Maryland, where legislation clearly listed licensing categories and requirements, Delaware’s language left too much room for interpretation. And in this case, the FBI wasn’t feeling generous.

Political Fallout and What Happens Next

The news is a headache for Governor John Carney’s administration, which had already clashed with lawmakers over cannabis in the past. Carney famously vetoed an earlier legalization bill in 2022, only for the legislature to override him the following year.

Now, with the infrastructure for a new industry nearly in place, a technicality threatens to stall the whole operation.

Some lawmakers are already drafting fixes. Others are urging calm.

“This is a delay — not a derailment,” said State Representative Ed Osienski, a key backer of the cannabis legalization bill. “We’ll work with OMC, we’ll get the FBI what they need, and we’ll move forward.”

That said, even a minor legislative delay can snowball.

One sentence needs fixing. But before that happens, it has to be introduced. Then scheduled. Then passed through committee. Then voted on by both chambers. Then signed. And only then will the FBI consider reopening Delaware’s case.

Tick-tock.

The Bigger Picture

For all the frustration, this situation isn’t unique. Other states launching adult-use programs have faced similar snags — bureaucratic holdups, policy rewrites, federal pushback.

What’s clear, though, is that federal-state friction continues to dog cannabis regulation. Even as more states move to legalise, cannabis remains illegal under federal law, making coordination tricky. In some cases, impossible.

Until Congress acts, states like Delaware will continue playing legal tug-of-war with federal agencies. And sometimes, like this week, they’ll lose a round.