The cannabis industry brink in New York is upon us, warns CANY President Damien Cornwell in a recent Times Union op-ed. Despite over 400 dispensaries and $200 million in tax revenue since legalization, social-equity operators face an existential threat unless funding and enforcement gaps are addressed immediately.
Read the full Times Union op-ed → https://www.timesunion.com/opinion/article/pull-new-york-s-legal-cannabis-industry-back-brink-20217297.php
Context: New York’s legal market at a tipping point
Since the MRTA passed in 2021, New York promised that 50 % of licenses would go to equity applicants. Today, 70 % of those businesses remain unopened due to capital shortages and regulatory red tape. Illicit sales are estimated to outpace licensed commerce by 10-to-1, siphoning millions from communities that need these economic opportunities most.
Why the cannabis industry brink matters
The cannabis industry brink endangers both social and economic progress:
- Funding gaps. A collapsed private investment fund left equity licensees financially stranded.
- Competitive imbalance. Unlicensed storefronts undercut legal shops and diminish market trust.
- Regulatory hurdles. Complex permitting and lack of track-and-trace grants strain small operators.
- Economic drag. Lost revenue means fewer dollars for reinvestment in education, healthcare, and community programs.
“We risk betraying communities hit hardest by prohibition if we don’t act now,” wrote Cornwell.
Impact on communities at the brink
Equity applicants—many from formerly incarcerated backgrounds—represent a critical pipeline for economic empowerment. Without immediate capital, dozens of entrepreneurs risk lease defaults and asset liquidation. The MRTA’s restorative justice goals could collapse under financial strain, undermining community trust and long-term market stability.
Lessons from other markets
Illinois launched a $50 million social-equity grant program in 2023, boosting the number of open equity dispensaries by 30 % within six months. New York could replicate this success by targeting disbursements to underserved regions—such as the Southern Tier and Capital District—while learning from Illinois’ streamlined application process.
Policy solutions to pull NY from the cannabis industry brink
- Establish a Cannabis Revitalization Fund. Provide non-dilutive grants for payroll, equipment, and compliance.
- Expand microbusiness rights. Increase processing limits, extend retail radiuses, and reserve shelf space for equity brands.
- Enforce against illicit storefronts. Coordinate state and local actions to shut down illegal operators and reinvest fines into equity programs.
- Increase grant transparency. Simplify applications and publish award data for accountability.
Implementing these measures could unlock $200 million in grants, support 1,500+ equity ventures, and create 2,000 jobs—averting the cannabis industry brink and fulfilling the MRTA’s promise of restorative justice.