Last month, the U.S. Congress passed a new federal law that will significantly impact the cannabis industry, particularly in New York. This legislation, which bans or restricts the production and sale of certain hemp-derived cannabis products—including edibles and beverages—will come into effect in November 2026. Many in the Central New York cannabis sector are now grappling with the implications of this sudden change, particularly as it was included in a broader bill that ended the federal government shutdown.
Allan Gandelman, founder of Head & Heal in Cortland County and a member of the Cannabis Association of New York, expressed the confusion felt across the industry. “There’s a lot going on here and a lot to think about,” he said. The responses to the new law vary; while some industry leaders view it as a positive step, others are concerned about potential disruptions to their business models.
The legislation essentially reverses changes made to federal agriculture law in 2018, which had deregulated hemp products. This deregulation led to a surge in hemp-derived products that often contained higher levels of the psychoactive compound THC than intended. Critics argue that these loopholes have resulted in products that can be as potent as traditional marijuana, which New York legalized for recreational use in 2021.
Despite the federal law’s potential to reshape the hemp landscape, it does not affect New York’s more than 500 licensed marijuana dispensaries. Heather Trela, a fellow at the Rockefeller Institute of Government, noted that New York has some of the strictest hemp regulations in the country. “If you were legal under the old law, you will probably be legal under the new law,” she stated. Trela also suggested that enforcement against New York businesses may not be a priority for federal authorities.
Yet, the changes will require some businesses to adjust their offerings. Tim Shore, co-founder of Buried Acorn Brewing, indicated that his company may have to discontinue certain THC-infused beverages. “What they’re talking about is exactly a product I make,” he said, referencing his low THC hemp-infused seltzers. The company may pivot to producing cannabis-based beverages exclusively for state-licensed dispensaries.
Ayrloom, a cannabis beverage company affiliated with Beak & Skiff Apple Orchards, faces a similar challenge. Company president Eddie Brennan highlighted that their products containing Delta 9, now banned under the new law, could vanish unless they find a way to adapt. “That would completely go away after a year if they are not able to extend or find a path to regulation,” Brennan remarked.
Gandelman also anticipates changes for his business, particularly in online sales. “I will not be allowed to do that under this law,” he explained, referring to his CBD products. He believes that the federal law arose partly due to “bad actors” selling out-of-state hemp products in convenience stores, which prompted the government to act.
For some, like Rodney Haymes, operator of a cannabis shop in Syracuse, the implications are more immediate. His business, The Dispensary by the BudBoyz, which focuses on THCa, may be significantly affected. “I anticipate some turbulence for sure,” he said. “If it takes effect as is here in NY or any other state, it will decimate the hemp industry as we know it.”
Conversely, Joe Rossi, founder of Modern Advocacy, sees a silver lining in the legislation. “For six years, intoxicating hemp products sold outside regulated cannabis systems have created confusion and real consumer-safety concerns,” he said in an email. Rossi views the new law as an opportunity for a reset in the industry, aligning federal policies with New York’s existing regulations that separate CBD wellness products from intoxicating cannabinoids.
The New York Office of Cannabis Management is currently reviewing the federal legislation and its impact on the state. The office has emphasized its commitment to maintaining rigorous standards for hemp products, ensuring they are manufactured in compliance with good practices to safeguard public health.
As the cannabis industry in New York adapts to this new legal landscape, the coming months will be crucial for businesses navigating the potential challenges and opportunities presented by the federal hemp law.
