New Federal Hemp Law Sparks Uncertainty in New York Cannabis Sector

The recent passage of a federal hemp law by Congress has ignited uncertainty within New York’s cannabis industry. The legislation, which will take effect in November 2026, bans or restricts the production and sale of certain cannabis edibles, beverages, and vapes derived from hemp. This significant change was included in the bill that aimed to prevent a federal government shutdown, catching many in the industry off guard.

Allan Gandelman, founder of Head & Heal in Cortland County and a key figure in the Cannabis Association of New York, expressed concern about the implications of the new law. “There’s a lot going on here and a lot to think about,” Gandelman stated. Reactions among industry leaders vary, with some fearing potential disruptions and others welcoming the regulatory clarity.

The new legislation essentially reverses the changes made in 2018 that deregulated hemp products, which allowed for the rise of hemp cannabis products with THC levels nearing those found in marijuana. Critics argue that the 2018 changes created loopholes that enabled the sale of highly potent hemp products, often found in convenience stores and gas stations.

New York, which legalized recreational marijuana in 2021, operates under a different framework than hemp-based products. The new federal regulations will not directly impact the over 500 legal marijuana dispensaries currently operating in the state. Heather Trela, a policy expert at the Rockefeller Institute of Government, indicated that the law’s effects on other cannabis businesses might be limited. “New York already has some of the strictest language regarding hemp in the country,” Trela noted, adding that existing legal operators are likely to remain compliant under the new regulations.

Despite some reassurances, the industry is bracing for adjustments. Owners of Central New York businesses selling THC-infused beverages have expressed concerns about potential discontinuation of certain product lines. Tim Shore, co-founder of Buried Acorn Brewing, indicated that he might need to shift his low THC hemp-infused seltzers to a cannabis-based model sold exclusively at licensed dispensaries. “What they’re talking about is exactly a product I make,” Shore remarked.

The Ayrloom company, associated with Beak & Skiff Apple Orchards, faces similar challenges. Company president Eddie Brennan emphasized the potential repercussions of the new federal law, which could eliminate their Delta 9 beverage line if alternate regulatory pathways are not established. “That would completely go away after a year if they are not able to extend or find a path to regulation,” Brennan explained.

Gandelman anticipates changes for his business as well. He noted that his out-of-state online sales will cease under the new law, as it restricts such transactions. He attributed the federal changes to “bad actors” who have introduced non-compliant hemp products to the market. Gandelman plans to focus on New York-grown and processed products.

In Syracuse, Rodney Haymes, who is launching a licensed recreational marijuana dispensary, expressed concern about his new venture centered around the hemp product THCa. “Yes, I anticipate some turbulence for sure,” Haymes stated. He believes the new regulations could significantly impact the hemp industry.

Conversely, Joe Rossi, founder of Modern Advocacy, highlighted a more optimistic perspective. He noted that the previous unregulated sale of intoxicating hemp products led to consumer safety issues. “With this new federal law, that chapter is ending,” Rossi conveyed. He sees this as a pivotal moment for the industry and consumers alike.

The New York Office of Cannabis Management is currently reviewing the federal legislation to assess its potential impacts on state regulations. The office has emphasized its commitment to ensuring that cannabinoid hemp products sold in New York adhere to strong manufacturing standards, safeguarding public health and consumer safety.

As the cannabis landscape continues to evolve, stakeholders in New York will need to navigate the complexities introduced by the new federal hemp law. The road ahead may be challenging, but the focus remains on ensuring a compliant and safe marketplace for consumers.