A recent provision included in the federal spending bill aimed at ending the US government shutdown has sparked significant concern and controversy within the hemp extracts industry. This provision would effectively ban intoxicating hemp-based THC products, such as delta-8 THC gummies and drinks, posing a severe threat to the growing market for these products. The bill’s passage in the Senate on Monday night brings this potential ban closer to reality, with the House of Representatives scheduled to vote on it shortly and President Donald Trump expected to sign it into law if it passes.
The controversial provision targets the “unregulated sale of intoxicating hemp-based or hemp-derived products,” according to a summary from the Senate Appropriations Committee. Specifically, it would prohibit the sale of these products online, in gas stations, and in corner stores. This comes as part of a larger $26.65 billion spending bill intended to fund federal government operations, but the inclusion of this hemp-related ban has drawn strong opposition from industry advocates and farmers alike.
To understand the significance of this provision, it is important to consider the legal background surrounding hemp and cannabis products in the United States. The 2018 Farm Bill was a landmark piece of legislation that essentially decriminalized hemp and hemp-derived products, provided they contain less than 0.3 percent delta-9 THC by dry weight. Delta-9 THC is the primary psychoactive compound found in cannabis, a plant that remains federally illegal. Hemp and cannabis both come from the cannabis sativa family, but hemp naturally contains very low levels of delta-9 THC, which is why it was legalized under the Farm Bill.
However, the Farm Bill left a loophole that allowed intoxicating hemp-derived cannabinoids like delta-8 THC and THCA to be sold legally. These cannabinoids are psychoactive and can produce intoxicating effects similar to delta-9 THC, but they have not been explicitly regulated or banned at the federal level. This loophole has enabled a rapidly expanding market for hemp-derived intoxicating products, including edibles, beverages, and other consumables.
Kentucky Senator Rand Paul was the only Republican senator to vote against the spending bill that includes this hemp ban, after his attempt to amend the bill and remove the ban failed. His opposition reflects the concerns of many in Kentucky, a state with a strong hemp farming tradition. In September, dozens of Kentucky hemp farmers sent a letter to Senator Mitch McConnell, who has been advocating for the ban, urging him to reconsider. The farmers emphasized that the hemp-derived cannabinoid market has offered them “for the first time in decades, a new crop with real economic opportunity.” They warned that the proposed ban would have “immediate and catastrophic consequences” for their livelihoods.
The economic stakes are indeed high. According to a recent report from Cannabis Business Times, sales of hemp-derived cannabinoids in 2023 have already exceeded $2.7 billion, highlighting the growing demand and commercial potential of these products. Attorney and hemp industry advocate Jonathan Miller has voiced strong opposition to the ban, stating that it would “ultimately devastate the industry and devastate hemp farmers as well.” He estimates that the ban would wipe out roughly 95 percent of hemp ingestible products currently on the market.
While the provision claims to protect “non-intoxicating CBD and industrial hemp products,” advocates like Miller dispute this assurance. He points out that many popular hemp-derived CBD products contain THC levels exceeding the proposed limit of 0.4 milligrams per container. Although CBD itself is not intoxicating and is widely used for conditions such as anxiety and insomnia, the new limits could jeopardize the availability of many common CBD products. Research into CBD’s medical efficacy remains limited, but its popularity continues to grow.
The market for intoxicating hemp products tends to thrive particularly in states where cannabis remains illegal. For instance, Florida has a robust delta-8 THC market, and Governor Ron DeSantis recently vetoed legislation that would have banned delta-8 sales in 2024. Cat Packer, director of drug markets and legal regulation at the Drug Policy Alliance, explains that there is a clear demand for THC products regardless of their legal status. “Whether or not they’re illegal, folks are going to find ways to access them,” she says. This underscores the challenge regulators face in balancing public health and safety concerns with consumer demand and market realities.
Currently, at least 23 states have enacted some form of regulatory framework governing hemp products, though many do not explicitly regulate delta-8 THC products