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U.S. cannabis shoppers face a market flush with illegal weed
In much of the U.S., illegal cannabis outcompetes legal weed sold in licensed shops. Officers with the law enforcement division of the California Department of Cannabis Control confiscate unlicensed marijuana plants in the Goldridge neighborhood of Fairfield, Calif., on Jan. 9.
Maggie Andresen for NPR
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Maggie Andresen for NPR
FAIRFIELD, Calif. — On a crisp winter morning last month, Sgt. Erin McAtee watched as members of his team with the California Department of Cannabis Control executed a search warrant at a home in Fairfield, halfway between Sacramento and San Francisco.
They broke open the door of what looked on the outside like any other upscale suburban house on this street. Inside, the home had been gutted, transformed into a smelly mess of marijuana plants, grow lights, chemicals and pesticides.
“You can see the mold down on the tarp down there,” McAtee said. “Yup, that’s mold.” His team also identified chemicals and pesticides not approved in the U.S. for use with consumer products like legal cannabis.
Sgt. Erin McAtee led the raids of three private residences for unlicensed marijuana production in the Goldridge neighborhood of Fairfield, Calif. Officers recovered 2,001 pounds of cannabis plants and 167.56 pounds of cannabis shake.
Maggie Andresen for NPR
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Maggie Andresen for NPR
A dozen years after states first started legalizing recreational marijuana, this is the complicated world of American cannabis.
On the one hand, weed is now as normal to many consumers as a glass of wine or a bottle of beer. A growing number of companies offer government tested, well-regulated products. But a huge amount of the cannabis being sold in the U.S. still comes from bootleg operations. California officials acknowledge illegal sales still far outpace transactions through licensed shops and vendors.
According to McAtee, it’s often difficult even for experienced agents to tell weed sourced through regulated channels from the criminal stuff.
“Our undercovers will buy cannabis from people who are outwardly pretending to be legit,” he told NPR. “They’ll tell you they have a license and that everything they’re doing is legit.”
If it’s hard for experienced cops to distinguish regulated weed from black market products, it can be nearly impossible for average consumers. Advocates of marijuana legalization say it’s disturbing that unregulated weed plays such a big role.
“We’re talking about a market that lacks transparency and accountability,” said Paul Armentano, head of NORML, the National Organization for the Reform of Marijuana Laws. He said any time a consumer product is being sold without proper regulation, it’s risky.
“Whether I was getting cannabis or alcohol or my broccoli from an entirely unregulated market, I’d be concerned about any number of issues,” Armentano said.
An officer with the California Department of Cannabis Control confiscates bunches of unlicensed marijuana plants.
Maggie Andresen for NPR
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Maggie Andresen for NPR
Black market weed thrives, raising questions for consumers
Advocates of cannabis decriminalization hoped legal weed companies would quickly move past this problem, eclipsing criminal growers and processors.
So far, the opposite has happened. Vanda Felbab-Brown, who studies criminal drug markets for the Brookings Institution, said regulated cannabis producers often compete with a growing network of criminal gangs often rooted in mainland China.
“They’re spreading from the West Coast all the way up to Maine,” she said.
According to Felbab-Brown, Chinese criminal organizations are drawn to the marijuana business because it’s a relatively low risk to gain a foothold in communities. There’s relatively little law enforcement pressure, unlike with harder drugs such as fentanyl and methamphetamines.
“These illegal cannabis cultivation plantations are used by the Chinese criminal groups for laundering money, but there is also increasingly an intertwining with human smuggling of Chinese people into the U.S. that go through some of those networks. They wind up in fact being enslaved at the plantations,” she said.
NPR emailed Chinese officials to ask about the role of China-based organized crime in the U.S. cannabis industry but haven’t heard back. In the past, Beijing has suggested the U.S. is pointing fingers at China to divert attention from America’s drug and crime problems.
The Law Enforcement Division of California’s Department of Cannabis Control waits outside of one of the three private residences raided for unlicensed marijuana production.
Maggie Andresen for NPR
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Maggie Andresen for NPR
Experts say criminal cannabis sellers wind up outcompeting licensed vendors. They don’t pay taxes or costly fees, which means their prices are often lower. They can also sell their product anywhere in the country, ignoring federal laws that prevent legal companies from shipping cannabis across state lines.
Black market weed then often winds up on store shelves, packaged in ways that can make it indistinguishable from legal regulated cannabis.
“There’s going to be mold and these banned pesticide and herbicides that are getting into the illegal product so that’s a grave concern,” said Bill Jones, head of enforcement for California’s Department of Cannabis Control. “I’m not sure all consumers are aware of that.”
What should consumers do?
With cannabis markets still difficult to navigate, experts interviewed by NPR said the most reliable way to find regulated cannabis is in licensed shops in states and communities where they’re allowed to operate. This often means paying a higher price, but the tradeoff in quality can be significant.
A customer browses products for sale at the Green Goddess Collective legal cannabis dispensary in the Venice neighborhood of Los Angeles, California. State officials and many cannabis experts hope licensed shops will eventually displace the booming black market industry.
PATRICK T. FALLON/AFP via Getty Images/AFP
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PATRICK T. FALLON/AFP via Getty Images/AFP
Many states where recreational cannabis is legal, including California and New Jersey and New York now have online advice to help people locate and buy legal marijuana. Double-check your brick-and-mortar shop to make sure it’s licensed and reputable.
Even when working through a reliable seller, cannabis experts said it’s a good idea to ask questions about sourcing and potency.

Everyone interviewed by NPR for this project said they expect it to get easier over time for people who choose to buy and use legal marijuana. Most pointed to the fact that America has gone through this kind of transition before with another popular consumer product: alcohol.
Alcohol prohibition was repealed in December 1933, but many states kept liquor bans on the books into the 1950s, creating the same kind of patchwork we now see with marijuana laws. Liquor bootleggers and smugglers continued to operate for years.
“When you move from prohibition to legalization, it takes time,” said Beau Kilmer an expert on marijuana markets and co-director of the Rand Drug Policy Research Center.
A restricted entry sign is posted to a location in the Goldridge neighborhood.
Maggie Andresen for NPR
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Maggie Andresen for NPR
According to Kilmer, many states have mismanaged this transition, focusing too much on regulating legal weed companies without helping them compete with criminal organizations.
“After [states] pass legalization, they’ll spend a couple of years coming up with the licensing regime and figuring out what the regulations are going to be and issuing licenses, but there hasn’t been a lot of focus on what to do about the illegal market. And in a lot of places, enforcement just hasn’t been a priority.”
This is changing in some places. In part to help legal operators compete, New York City has been cracking down on unlicensed marijuana retail stores. California officials say they seized nearly $200 million worth of illegally grown cannabis last year.
Despite these efforts, black market weed is expected to remain “pervasive” for years to come, according to state officials and drug policy experts.
In Fairfield, Sgt. McAtee watched as a truck backed up to another illegal grow house, preparing to haul away a big crop of seized cannabis. He said this crop might have wound up on shelves anywhere in the U.S.
“A lot of the places we hit, they’re shipping their cannabis out of state, where they can make ten-fold [the profit] you’d make in California,” he said.
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Who is John Phelan, the US Navy Secretary fired by Pete Hegseth?
The firing of US Navy Secretary John Phelan is the latest in a shakeup of the American military during the war on Iran, now in its eighth week.
The Pentagon said Phelan would leave office immediately.
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“On behalf of the Secretary of War and Deputy Secretary of War, we are grateful to Secretary Phelan for his service to the Department and the United States Navy,” said chief Pentagon spokesperson Sean Parnell. “We wish him well in his future endeavours”.
His firing comes at a critical moment, with US naval forces enforcing a blockade on Iranian ports and ships, and maintaining a heavy presence around the Strait of Hormuz, through which 20 percent of the world’s oil and gas passes during peacetime.
Although the Pentagon gave no official reason for the dismissal, reports indicate the decision was linked to internal disputes, including tensions with Defense Secretary Pete Hegseth.
Phelan’s removal is part of a broader pattern of dismissals and restructuring within the US military under President Donald Trump’s administration – including during the current war.
So, who is John Phelan, and what impact could his firing have on US military strategy?
Who is John Phelan?
As the US Navy’s top civilian official, Phelan had various responsibilities, including overseeing recruiting, mobilising and organising, as well as construction and repair of ships and military equipment.
He was appointed in 2024 as a political ally of Trump, despite having no prior military or defence leadership experience.
Before entering government, Phelan was a businessman and investment executive, as well as a major Republican donor and fundraiser — a background that is fairly common among Trump appointees and advisers. The US president’s two top diplomatic negotiators, for instance, are Steve Witkoff — a real estate businessman with no prior diplomatic experience – and Trump’s son-in-law, Jared Kushner.
According to the Reuters news agency, Phelan’s tenure quickly became controversial. He faced criticism for moving too slowly on shipbuilding reforms and for strained relationships with key Pentagon figures, including Hegseth and his deputy, Steve Feinberg.
In addition, Phelan was reportedly under an ethics investigation, which may have weakened his standing in the administration.
Navy Undersecretary Hung Cao, who was also reported to have a difficult relationship with Phelan, has become acting secretary. Fifty-four-year-old Cao is a 25-year Navy veteran who previously ran as a Republican candidate for the US Senate and House of Representatives in 2022 and 2024 respectively, but was unsuccessful on both occasions.
Democrats have criticised Phelan’s removal, calling it “troubling”.
“I am concerned it is yet another example of the instability and dysfunction that have come to define the Department of Defense under President Trump and Secretary Hegseth,” said Senator Jack Reed, the top Democrat on the Senate Armed Services Committee.
Who else has the Trump administration fired since the war with Iran began?
Phelan’s removal is the latest in a series of senior military leaders being fired or are leaving during the US-Israeli war on Iran, in addition to others since Trump was re-elected.
Among the most notable dismissals was Army Chief of Staff General Randy A. George, in the first week of April. George was appointed in 2023 under former US President Joe Biden.
According to reports, Hegseth also fired the head of the Army’s Transformation and Training Command, a unit concerned with modernising the army, and the Army’s chief of chaplains. The Pentagon has not confirmed their dismissal.
Why is Phelan’s dismissal significant?
The 62-year-old’s removal comes during a fragile ceasefire with Iran, as the US continues to move more naval assets into the region.
The Navy is central to enforcing Trump’s blockade of Iranian ports to restrict Iran’s oil exports and apply economic pressure on Tehran, as the US president looks eager to wrap up the war, which is deeply unpopular to many Americans.
However, there are no indications that Trump is willing to end the blockade or other naval operations in the Strait of Hormuz, as negotiations between Washington and Tehran have come to a standstill.
Tensions have escalated in recent days after the US military seized an Iranian container ship. The US claimed it was attempting to sail from the Arabian Sea through the Strait of Hormuz to the Iranian port of Bandar Abbas.
Tehran responded by describing the attack and hijack as an act of “piracy”.
Iran has since captured two cargo ships and fired at another.
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Not a Deal-Breaker: White House Downplays Iranian Action Near the Strait
Just two weeks ago, President Trump threatened to wipe out Iran’s civilization if it did not open the Strait of Hormuz. Days later, he said any Iranian “who fires at us, or at peaceful vessels, will be BLOWN TO HELL!”
Yet on Wednesday, after Iran seized two ships near the Strait of Hormuz, the White House was quick to argue the action was not a deal breaker for potential peace negotiations.
“These were not U.S. ships,” Karoline Leavitt, the White House press secretary, said on Fox News. “These were not Israeli ships.” Therefore, she explained, the Iranians had not violated a cease-fire with the United States that Mr. Trump has extended indefinitely.
She cautioned the news media against “blowing this out of proportion.”
The surprisingly tolerant tone from the White House suggests Mr. Trump is not eager to reignite a war that he started alongside Israel on Feb. 28 — a war that has proved unpopular with Americans and has gone on longer than he initially estimated.
The president on Tuesday extended a cease-fire between the United States and Iran that had been set to expire within hours, saying he wanted to give Tehran a chance to come up with a new proposal to end the war.
The American military has displayed its overwhelming might during the war, successfully striking thousands of targets. But it remains unclear whether Mr. Trump will accomplish the political objectives of the war.
The Iranian regime, even after its top leaders were killed, is still intact. Iran has not agreed to Mr. Trump’s demands to turn over its nuclear capabilities to the United States or significantly curtail them. And the Strait of Hormuz, a key passageway for world commerce that was open before the war, remains closed.
Nevertheless, the White House has repeatedly highlighted the military successes on the battlefield as evidence it is winning the war.
“We have completely confused and obliterated their regime,” Ms. Leavitt said on Fox Wednesday. “They are in a very weak position thanks to the actions taken by President Trump and our great United States armed forces, and so we will continue this important mission on our own.”
The oscillation between threats and a more conciliatory tone has long been one of Mr. Trump’s signature negotiating strategies.
Potential peace talks between the two countries are on hold. Vice President JD Vance had been poised to fly to Islamabad for negotiations. But the trip was postponed until Iran can “come up with a unified proposal,” Mr. Trump said.
The United States recently transmitted a written proposal to the Iranians intended to establish base-line points of agreement that could frame more detailed negotiations. The document covers a broad range of issues, but the core sticking points are the same ones that have bedeviled Western negotiators for more than a decade: the scope of Iran’s uranium enrichment program and the fate of its stockpile of enriched uranium.
Mr. Trump has not spoken publicly about the cease-fire, other than on social media. On Wednesday, he also posted about topics including “my Apprentice Juggernaut” — a reference to his former television show; the Virginia elections, which he called “rigged”; and a new book about Supreme Court Justice Samuel A. Alito Jr.
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Pentagon says Navy secretary is leaving, the latest departure of a top defense leader
Secretary of the Navy John Phelan speaks, as President Trump listens, at Trump’s Mar-a-Lago club on Dec. 22 in Palm Beach, Fla.
Alex Brandon/AP
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Alex Brandon/AP
WASHINGTON — Navy Secretary John Phelan is leaving his job, the Pentagon abruptly announced Wednesday, the first head of a military service to depart during President Trump’s second term but just the latest top defense leader to step down or be ousted.
No reason was given for the unexpected departure of the Navy’s top civilian official, coming as the sea service has imposed a blockade of Iranian ports and is targeting ships linked to Tehran around the world during a tenuous ceasefire in the war. Another Trump loyalist is taking over as acting head of the Navy: Undersecretary Hung Cao, a 25-year Navy combat veteran who ran unsuccessful campaigns for the U.S. Senate and House in Virginia.


Phelan’s departure is the latest in a series of shakeups of top leadership at the Pentagon, coming just weeks after Defense Secretary Pete Hegseth fired the Army’s top uniformed officer, Gen. Randy George. Hegseth also has fired several other top generals, admirals and defense leaders since taking office last year.
The firings began in February 2025, when Hegseth removed military leaders, including Adm. Lisa Franchetti, the Navy’s top uniformed officer, and Gen. Jim Slife, the No. 2 leader at the Air Force. Trump also fired Gen. Charles “CQ” Brown Jr. as chairman of the Joint Chiefs of Staff.
Showing how sudden the latest move was, Phelan had addressed a large crowd of sailors and industry professionals on Tuesday at the Navy’s annual conference in Washington and spoke with reporters about his agenda. He also hosted the leaders of the House Armed Services Committee to discuss the Navy’s budget request and efforts to build more ships, according to a social media post from his office.
Pentagon spokesman Sean Parnell said in a post on X that Phelan was “departing the administration, effective immediately.”
Phelan had been a major Trump donor
Phelan had not served in the military or had a civilian leadership role in the service before Trump nominated him for secretary in late 2024. He was seen as an outsider being brought in to shake up the Navy.
Hung Cao speaks during the Republican National Convention on July 16, 2024, in Milwaukee.
Matt Rourke/AP
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Matt Rourke/AP
Phelan was a major donor to Trump’s campaign and had founded the private investment firm Rugger Management LLC. According to his biography, Phelan’s primary exposure to the military came from an advisory position he held on the Spirit of America, a nonprofit that supported the defense of Ukraine and the defense of Taiwan.
The Associated Press could not immediately reach Phelan’s office for comment. The White House did not answer questions and instead responded by sending a link to Parnell’s statement.
Phelan is leaving during a busy time for the Navy. It has three aircraft carriers deployed in or heading to the Middle East, while the Trump administration says all the armed forces are poised to resume combat operations against Iran should the ceasefire expire.
The Navy also has maintained a heavy presence in the Caribbean, where it has been part of a campaign of strikes against alleged drug boats. It also played a major role in the capture of Venezuelan leader Nicolás Maduro in January.
New acting Navy secretary ran unsuccessful bids for Congress
Taking over as acting secretary is Cao, who ran a failed U.S. Senate bid in Virginia to try to unseat Democratic Sen. Tim Kaine in 2024. He had Trump’s endorsement in the crowded Republican primary and gave a speech at the 2024 Republican National Convention.
Cao’s biography includes fleeing Vietnam with his family as a child in the 1970s. In a campaign video for his Senate bid, he compared Vietnam’s communist regime during the Cold War to the administration of Democratic President Joe Biden.
During his one debate with Kaine, Cao criticized COVID-19 vaccine mandates for service members as well as the military’s diversity, equity and inclusion efforts.
“When you’re using a drag queen to recruit for the Navy, that’s not the people we want,” Cao said from the debate stage. “What we need is alpha males and alpha females who are going to rip out their own guts, eat them and ask for seconds. Those are the young men and women that are going to win wars.”
Trump and Hegseth have railed against DEI in the military, banning the efforts and firing people accused of supporting such programs.
When he ran for Congress in Virginia in 2022, Cao expressed opposition to aid for Ukraine during a debate against his Democratic opponent.
“My heart goes out to the Ukrainian people. … But right now we’re borrowing $55 billion from China to pay for the war in Ukraine. Not only that, we’re depleting our national strategic reserves,” Cao said.
Cao graduated from the prestigious Thomas Jefferson High School for Science and Technology in Alexandria, Virginia, before attending the U.S. Naval Academy.
He was commissioned as a special operations officer and went on to serve with SEAL teams and special forces in Iraq, Afghanistan and Somalia before retiring at the rank of captain, according to his Senate campaign biography.
Cao also earned a master’s degree in physics and had fellowships at the Massachusetts Institute of Technology and Harvard University.
Since becoming Navy undersecretary, Cao has championed returning to duty service members that refused a Biden-era mandate to take the COVID-19 vaccine.
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