NY Cannabis Shops Safe Through 2026 Under Court Order After Regulatory Mistake

25 September 2025

A regulatory error that threatened to shut down more than 150 cannabis dispensaries in New York has been addressed by a state court ruling. Supreme Court Judge Keri Savona granted a preliminary injunction that allows licensed marijuana retailers to continue operating under the state’s earlier practice of measuring school buffer zones from entrances rather than property lines.

The decision came after the Office of Cannabis Management (OCM) admitted it had used the wrong method to calculate the required 500-foot distance between schools and dispensaries. The correction left 152 licensees out of compliance, including more than 60 already open and dozens more preparing to launch. A group of operators filed suit, and the state attorney general’s office did not oppose the injunction.

The order, which extends until February 15, 2026, directs OCM to continue applying the entrance-based standard during licensing renewals and applications. Officials said the ruling protects hundreds of millions of dollars in cannabis sales while lawmakers work on a longer-term fix. Some legislators are considering reducing the required buffer to 200 feet, in line with liquor regulations.

Governor Kathy Hochul praised the ruling, saying her administration will collaborate with the Legislature to safeguard licensed dispensaries. OCM also confirmed it would continue to support affected businesses, including offering up to $250,000 per shop in relocation aid if necessary.

• For operators, the injunction reduces immediate uncertainty and allows planned openings to move forward.
• For patients and adult-use consumers, it ensures uninterrupted access to regulated cannabis products.
• For municipalities, it maintains expected revenue streams.

Still, stakeholders remain cautious, as the industry awaits legislative action to make the solution permanent.