The U.S. hemp industry, valued at $8 billion, faces a potential nationwide ban on most products containing tetrahydrocannabinol (THC) under language included in the continuing appropriations and extensions act, according to Bisnow. The bill, which is Congress’ solution to ending the government shutdown, would limit allowable THC content in hemp products to 0.4 milligrams per package. This change would take effect in one year.
Industry experts warn that such a measure could lead to the closure of thousands of businesses across Texas and result in up to 17 million square feet of retail space becoming vacant. The commercial real estate sector could be significantly affected by these closures.
“It would have to be the passion project of a politician willing to die on that hill,” said California cannabis attorney Brandon Dorsky, who has practiced in the field since 2009. “And there’s only one of those — Rand Paul.”
Senator Rand Paul from Kentucky introduced an amendment aimed at removing the ban from the spending bill, arguing it would “regulate the hemp industry to death” and undo years of progress for consumers and farmers. His amendment failed by a vote of 76–24; only Paul and Texas Senator Ted Cruz were Republicans voting in favor.
Cruz stated on X that regulation over hemp and marijuana should be decided by states rather than imposed federally.
Texas’ hemp industry grew rapidly after the 2018 Farm Bill legalized products with no more than 0.3 percent THC. The sector now supports more than 50,000 jobs and approximately 8,500 businesses statewide, ranging from small CBD shops to large retailers like H-E-B.
Paul noted that reducing allowable THC content as proposed would eliminate all current hemp-derived products on shelves: “bad actors” may have exploited previous laws by increasing THC levels, but he believes this federal response is excessive.
Earlier this year, state-level attempts to restrict intoxicating hemp products failed when Texas Lt. Gov. Dan Patrick’s proposed legislation was vetoed by Gov. Greg Abbott—a move seen as crucial for keeping many retailers open.
In response to the new federal proposal, groups such as the Texas Hemp Business Council are organizing opposition efforts nationwide: “Hemp is too vital to the American economy to be dismantled by rushed, politically driven legislation,” they stated while pledging legal and legislative action.
