The Latest on New York Cannabis in 2025

Everyone wants to know: is weed legal in New York? While the answer is technically yes, it seems like every day brings another round of announcements, legislation and news articles. Late 2024, the Office for Cannabis Management (OCM) acknowledged “growing pains” during the launch of the adult-use market, including a slow market rollout and leadership controversies. But also said they were confident the state was poised for success, including Gov. Hochul’s revival of the Cannabis Growers Showcase program, where producers sell directly to consumers at farmers market-style events. Leave a comment with your thoughts on the state’s handling of the market thus far, your views on the future or what you have experienced.

Current New York Cannabis Laws

In early March 2025, a new bill regarding NY cannabis laws was introduced in the New York Senate. Its aim is to repeal regulations that restrict the sale of intoxicating hemp products like Delta-8. These regulations are not yet in effect but have been pushed by the OCM, with a planned enforcement start of July 27, 2025 for this New York weed law. The new bill, S05809, is currently under review by the Investigations And Government Operations Committee and is summarized as law that “provides that a retailer licensed by the office of cannabis management shall be permitted to sell any and all forms of cannabinoid hemp.”

Proposed Changes to NY Cannabis Laws and Regulations

The OCM recently introduced a new type of cannabis business license: the Adult-Use Processor Type 3 Branding License. Under it, a licensed processor handles all cannabis-related activities, including extraction, blending, infusion, packaging and labelling, while the brand licensee contributes intellectual property (such as logos and product specifications) and non-cannabis materials (like rolling papers, flavoring agents or vaporizers). Concerns around this new type of license are that it permits out-of-state brands to enter the New York market without classification as a “True Party of Interest” in a facility, therefore making it easier for companies to expand without direct financial or operational associations with New York-based processors.

Cannabis Business Grant Program

A New York grant program that will award up to $30,000 apiece to retail cannabis businesses in the state is set to open its application process soon, however the originally planned opening of March 4 has passed without update. Applications will be accepted until the program’s $5 million in funding runs out. The grants are intended to reimburse eligible expenses of between $10,000 and $30,000 incurred by businesses licensed under the Conditional Adult-Use Retail Dispensary (CAURD) program, as part of NY cannabis laws.

Repayment of Cannabis Social Equity Investment Fund

For those who made their way into the market with the help of the Cannabis Social Equity Investment Fund, many are now understanding the plan’s downside. Gov. Hochul has submitted a budget proposal that seeks to recoup the state’s $50 million investment, which was used to lease and renovate stores made legal by cannabis laws in New York. Repayment of this money is top priority, and it is only after repayment that tax revenue from cannabis sales will go to programs intended to deliver the promised benefits of legalization, such as community investment in low-income Black and Latino neighborhoods where the vast majority of marijuana-related arrests occurred under previous New York weed laws.

Proposed NY Weed Laws Restricting THC Potency, Consumption

Cannabis laws in New York have also seen the introduction of a pair of bills designed to restrict further: by limiting THC potency of products, and by prohibiting consumption within 30 feet of a child’s residence. Assembly Bill A977 intends to limit flower to no more than 15% Delta-9 THC, while all other cannabis products — including concentrates and hemp-derived products — would be capped at 25% Delta-9 THC. Growing, processing or distributing products exceeding those limits would be punishable by up to 90 days in jail and a $500 fine. Assembly Bill A1007 would prohibit smoking or vaping cannabis “within 30 feet of a child or within 30 feet of any location in which children reside or attend for any recreational or educational purpose.” This would include “areas separated by walls, closed doors or floors within a building,” meaning the change could limit consumption even within users’ private residences if their neighbors have children.

Support the New York Cannabis Industry

New York cannabis laws can be confusing but numerous people are fighting for the cannabis cause! Join CannaCon, the nation’s leading business-to-business cannabis conference, June 12-13, 2025 in Rochester, NY. The goal is to grow the cannabis industry by educating cannabis business owners on all things related to cannabis and hemp. CannaCon trade shows feature a large exhibition hall with cannabis exhibitors and informative seminars from industry experts. Support and find your supporters here! Be informed of the NY cannabis travel laws too.

This blog was originally published on Feb. 2, 2024, and has been updated for March 2025.