A Year of Advocacy and Engagement for New Jersey’s Cannabis Industry – “Green Shoots” Loading…

By Todd Johnson, Executive Director, New Jersey Cannabis Trade Association

As I prepared to write this year’s review, I reread our year-end review of 2024, and it reminded me that this industry is in a constant state of evolution. Even with tangible progress and goals achieved in 2025, many of last year’s priorities were also this year’s priorities…and will continue to be priorities in 2026.  

2025 was defined by persistent advocacy, meaningful collaboration and the determination of operators to continue to weather a storm of challenges. These challenges, two of which are a constrictive regulatory landscape and a wild west of a competitive landscape, date back for years.  However, as we look forward to 2026, there are signs of “green shoots” loading and there are reasons to be optimistic that a prolonged downturn in state legal cannabis markets, nationwide, will soon be in the rear-view mirror.

As part of the spending bill that reopened the government after a protracted shut down, Congress finally provided clarity at the Federal level on the definition of “intoxicating hemp.” And just last week, New Jersey followed suit by passing a law, S4509, that redefines “intoxicating hemp” to align with Federal statute and brings all intoxicating THC products under one umbrella. This alignment will be a boon for consumer safety and encourage all intoxicating THC cultivators, manufacturers and dispensaries to attain state legal cannabis licenses. Couple this development with the recent Executive Order to expedite the rescheduling of cannabis from Schedule 1 to Schedule 3 and you have a recipe for a significantly improved marketplace in 2026 and beyond!

Operator Engagement and Empowerment

Here at the NJCTA, 2025 was busy. We kicked off the year with our highly anticipated Marketing in Cannabis Business Builder Series, where we offered cannabis professionals free guidance on sales, advertising and social media tips to help their businesses succeed in an increasingly competitive and highly regulated market. The NJCTA’s social equity-driven Business Builder Series was created to give aspiring entrepreneurs and applicants direct access to industry experts – offering invaluable insights and best practices to support their success in New Jersey’s young and evolving marketplace.

The Spring and early summer were filled with advocacy around topics such as testing guidance and regulation, packaging and labeling requirements, advertising and the regulation of intoxicating hemp products. This fall, after a hotly contested Governor election, we brought together operators, elected officials and stakeholders at the New Jersey League of Municipalities Annual Conference to foster open dialogue about strengthening cannabis safety in our communities. We were honored to host Wanda James, candidate for Colorado’s 1^st Congressional District and longtime national cannabis advocate, as our special guest. By bringing operators and policymakers into the same room, we’re ensuring the needs of our industry are not only heard, but understood and advanced.

Another Year of Effective Advocacy

Advocacy is at the core of the NJCTA’s mission, and this year, our advocacy touched every corner of the regulatory landscape:

1.     Social Equity Excise Fee (SEEF)

The NJCTA continues to work tirelessly to advocate for a more balanced and effective SEEF. While we fully support the noble intentions of the SEEF – to acknowledge the harms of the failed War on Drugs and reinvest in social equity initiatives in the very communities disproportionately targeted –  we remain concerned by ongoing discussions to increase the SEEF to levels that would be detrimental to operators, particularly small, locally owned, and social equity businesses, and the industry at large.

At the October Cannabis Regulatory Commission (CRC), meeting, I urged Commissioners to freeze the SEEF at $2.50 per ounce rate and to ensure that these funds are directed toward grants and low-interest loans for social equity operators, as originally recommended by the CRC, rather than being redirected elsewhere with little evidence of meaningful impact. Over the years, the NJCTA, operators, stakeholders and consumers have united in opposition to a drastic increase in the SEEF rate. As a result of this collective advocacy, an adjustment to the 2026 SEEF rate has been delayed, freezing the SEEF at the current rate, temporarily. As we look ahead, we’ll advocate for a longer, continuous freeze of the SEEF. Additionally, we are preparing for the to discuss the allocation of SEEF funds. These discussions will shape the future of social equity in New Jersey’s cannabis market, and we strongly encourage the community to participate and make their voices heard.

Virtual SEEF hearings will be held on:

·       (Northern region) Thursday, January 15, 2026, 1:30-2:30 p.m.

·       (Central region) Wednesday, January 21, 2026, 1:30-2:30 p.m.

·       (Southern region) Thursday, January 29, 2026, 2-3 p.m.

2.     General CRC Engagement

Throughout the year, we were proud to engage the CRC in constructive dialogue on a range of critical issues. Early on, when the Commission signaled plans to more strictly interpret rules around packaging and labeling – including proposed limitations on colors, logos and other branding elements – we worked closely to outline the practical implications for businesses. Thanks to these productive conversations, those overly restrictive interpretations were ultimately set aside, preserving operators’ ability to differentiate themselves in a competitive market.

The NJCTA also raised significant concerns about the CRC’s revised testing guidance, which introduced inconsistencies and ambiguities that have created compliance challenges for both operators and labs. Thanks to the collective voices of operators, the CRC ultimately rescinded those revised regulations on testing guidance. We remain encouraged by the opportunity for refinement and look forward to the release of updated testing regulations next year that we hope will provide clarity and a more practical framework for the industry.

3.     Continued Hemp Education

Those following the NJCTA know that we have long advocated for meaningful regulation of intoxicating hemp-derived cannabinoids. This year marked a critical step forward. We commend the federal government for closing the loophole in the 2018 Farm Bill, restoring the law’s original intent and helping ensure that state-licensed cannabis operators are not forced to compete with unregulated smoke shops, gas stations and convenience stores. Consumers deserve clear standards and oversight of the products they consume, and we remain committed to both consumer safety and a fair, level playing field across a legal and regulated cannabis marketplace.

2026 Priorities

Looking ahead to 2026, the NJCTA will continue pushing for thoughtful reforms that strengthen New Jersey’s cannabis marketplace, including revisiting advertising rules, improving the badging and hiring process and advancing safe, practical and science-based testing standards. We also anticipate significant progress at the federal level, as cannabis rescheduling holds tremendous promise for the profitability of operators and decriminalization nationwide. Furthermore, we are excited for the continued expansion of brands and product formats in New Jersey as the market matures, bringing consumers more choice and innovation.

CRC “Clean-up” Bill

Our members have worked closely with the Legislature to advance S4847, a comprehensive bill that updates and clarifies several aspects of New Jersey’s regulatory framework. Among its many reforms, the bill empowers the CRC to exempt certain employees from background check requirements – an important step toward reducing unnecessary hiring delays and strengthening the cannabis workforce. We look forward to seeing this bill advance next year.

A New Chapter Ahead

As we transition into a new political chapter for New Jersey, we look forward to engaging with the Sherrill Administration. We are optimistic that the strong continuity and expertise demonstrated by CRC and other state agency staff in recent years will carry forward to support a stable, predictable and business-friendly regulatory environment.

The NJCTA is proud to serve as a united voice of New Jersey’s licensed operators, ensuring the needs of those working every day to move it forward are heard. While challenges lie ahead, our industry is resilient and poised to rise to every occasion. We wish you all a safe, successful and Happy New Year!

Todd Johnson is the executive director of the New Jersey Cannabis Trade Association (NJCTA), which is comprised of the state’s permitted medical and adult-use cannabis operators with the shared mission to ensure the legal cannabis marketplace is not only safe, accessible and affordable, but also equitable and just.