New York Cannabis 2025: Equity, Expansion, and a Billion in Sales!

New York legalized adult-use cannabis in March 2021 when the legislature passed and then-Gov. Andrew Cuomo (D) signed the Marijuana Regulation and Taxation Act (MRTA). The MRTA created the Office of Cannabis Management (OCM) and the Cannabis Control Board to oversee adult-use, medical, and hemp programs.Under the MRTA, adults 21 and over may possess up to three ounces of cannabis and 24 grams of concentrate, and grow up to three mature and three immature plants per person (with a household cap of six each). The law includes provisions for automatic expungement, community reinvestment, and measures to ensure the industry includes communities that have been disproportionately targeted by cannabis enforcement. A summary of the law is available here.Sales to adults 21 and older began on December 29, 2022. As of early 2025, New York’s legal cannabis market is rapidly expanding: the OCM reported that nearly 300 adult-use dispensaries are open statewide and total sales exceeded $1 billion in 2024. Since the program’s launch, OCM has issued over 5,250 licenses/permits, including hundreds for cultivators and processors. About 54.1% of adult-use licenses have been awarded to Social and Economic Equity applicants.

The state has also rolled out support programs for equity licensees. In March 2025, New York launched a $5 million CAURD Grant Program to help licensed dispensaries cover startup costs, with up to $30,000 available per applicant. The program reimburses expenses such as rent, security systems, point-of-sale equipment, and renovations. On December 21, 2024, Gov. Kathy Hochul signed into law A10398, creating a Cannabis Showcase Event permit that brings back growers’ markets. Under this permit, a licensed adult-use retailer (with a partner cultivator or processor) can hold temporary cannabis sales events (such as at the State Fair or pop-up locations). The governor also signed S818 (2025) to clarify the rules. Another bill (A1234/S1752, Chapter 175 of 2024) was signed to amend New York’s tax code, expressly classifying cannabis as an agricultural product for tax purposes.

2025 - 2026 Legislative Session

New York’s 2025 legislative session featured a range of cannabis-related bills, including both bills to restrict freedoms and bills to expand equity and the industry.

Gov. Hochul’s budget proposal included a regressive provision, seeking to allow police to use the odor of cannabis as probable cause for roadside searches. The measure was met with broad opposition from advocates, the Office of Cannabis Management, and key legislators. However, lawmakers ultimately removed the provision from the final state budget in May 2025. 

Meanwhile, Assemblyman Phil Steck’s A977 would cap delta-9 THC in cannabis flower at 15% (25% in concentrates/edibles), prohibiting virtually all cannabis that consumers purchase. His A1007 would prohibit smoking or vaping cannabis within 30 feet of any child or any place a child resides or attends. This would prohibit inhaling cannabis in one’s apartment if a child lives next door or upstairs. 

In the Senate, S5809 was introduced to require that any OCM-licensed retailer must be allowed to sell all hemp-derived cannabinoids, effectively blocking a planned ban on intoxicating hemp products like Delta-8. On licensing, A747 (and Senate companion S5826) would expand on-site consumption licenses, allowing such venues to sell food, non-alcoholic beverages, and host entertainment alongside cannabis. 

A bipartisan bill called the “Small Cannabis Farmer Relief Act” (S8375/A8811) would let certain social-equity cultivators temporarily increase their cultivation canopy (e.g. double their plant count) to help meet market demand. 

Finally, Senator James Sanders’s S1137 would raise the cap on New York’s Social Equity Cannabis Investment Fund from $50 million to $300 million, providing far more state-backed financing to social-equity cannabis businesses. New York’s legislative session has adjourned for the year, but — other than the budget — the bills carry over to 2026.

Medical Cannabis in New York

The New York Legislature first enacted a restrictive medical cannabis law in 2014, which has steadily expanded. Registered medical patients (or their caregivers) may purchase and possess up to a 60-day supply of cannabis, as determined by their certifying practitioner. 

While this supply can exceed adult-use limits, patients may not carry more than 3 ounces of flower or 24 grams of concentrate in public at any time. Any excess must be stored securely at home. 

Medical patients may be under 21 (with a guardian) and are exempt from the 13% retail excise tax, paying a reduced 3.15% state tax instead. This tax exemption is only valid at licensed medical dispensaries. Adult-use dispensaries that are not also medical dispensaries may not provide said tax exemption, leaving medical patients with only a handful of options outside of New York City. Patients may also grow cannabis at home under the same plant and storage limits as adult-use consumers. 

On January 24, 2022, the OCM expanded the medical cannabis program to allow doctors the ability to recommend cannabis for any condition. Prior to the expansion, doctors were only allowed to certify patients with a limited number of conditions permitted by statute.

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