A new federal spending bill aimed at ending the ongoing government shutdown could significantly impact the hemp industry with a controversial provision banning intoxicating hemp-based THC products. The legislation, which passed the U.S. Senate and is now under consideration by the House of Representatives, has prompted outcry from hemp farmers and advocates who fear devastating economic consequences.
Key Provisions of the Bill
The proposed bill includes a measure that would ban the sale of intoxicating hemp-derived products, such as delta-8 THC gummies and drinks, in unregulated outlets like online stores, gas stations, and corner stores. This provision specifically targets products that exploit a legal loophole in the 2018 Farm Bill, which decriminalized hemp with less than 0.3 percent delta-9 THC. The new legislation would impose stricter limits, effectively outlawing products containing more than 0.4 milligrams of THC per container.
According to a summary released by the Senate Appropriations Committee, the provision is designed to close the loophole that allowed hemp-based intoxicating products to flourish. However, critics argue this move would decimate the $2.7 billion hemp-derived cannabinoid market reported in 2023 by the Cannabis Business Times.
Pushback from the Hemp Industry
Hemp farmers and industry advocates are raising alarms over the potential fallout. Kentucky Senator Rand Paul was the sole Republican to oppose the bill in the Senate after failing to remove the hemp-related provision through an amendment. In September, dozens of Kentucky hemp farmers wrote an open letter to Senator Mitch McConnell, urging him to reconsider his support for the ban. The letter emphasized that the hemp-derived cannabinoid market provided farmers with a "new crop with real economic opportunity" and warned of "immediate and catastrophic consequences" if the ban were enacted.
Among the critics, attorney and hemp advocate Jonathan Miller highlighted the severe impact of the measure, saying it would "ultimately devastate the industry and devastate hemp farmers as well." He added, "This will ultimately devastate the industry and devastate hemp farmers as well", estimating the provision would "wipe out" about 95 percent of hemp ingestibles currently on the market.
Scope and Limitations
The legislation claims to preserve non-intoxicating CBD and industrial hemp products, but Miller disputes that assurance. He noted that many popular CBD products exceed the proposed THC limit, even though they do not produce a psychoactive effect. These products, widely used for issues like insomnia and anxiety, could also face obstacles despite a lack of conclusive research into their efficacy.
The impact of the ban is expected to be particularly pronounced in states where cannabis remains illegal and hemp-derived products like delta-8 THC have become popular alternatives. For example, Florida has a thriving market for these products, as previous attempts to ban them were vetoed by Governor Ron DeSantis. "There is a reality again that folks want these THC products and whether or not they’re illegal, folks are going to find ways to access them", said Cat Packer, director of drug markets and legal regulation for the Drug Policy Alliance.
Packer also pointed out that while some states - 23 in total - have regulatory frameworks for hemp products, others lack such oversight, leaving products like delta-8 largely unregulated.
The Path Forward
If passed into law, the measure would give the industry one year to comply with the ban or face enforcement. Miller urged those who use hemp products to take action, stating, "Your readers who take CBD or take beverages or gummies really need to contact their members of Congress to let them know that we need to make sure that something’s done before this takes effect."
As the House prepares to vote on the bill, the hemp industry braces for what could be a transformative moment, with supporters and opponents closely watching the outcome. President Donald Trump is expected to sign the bill into law if it clears the House. For the hemp farmers and businesses relying on cannabinoid sales, the stakes could not be higher.