Update on Hemp Laws
Navigating the Future of Hemp: The Senate’s Push to Close Delta-8 Loopholes and the Industry’s Fight for SurvivalIn recent months, the hemp industry has found itself at a critical juncture, with federal lawmakers intensifying efforts to redefine the legal framework surrounding hemp-derived products, particularly those containing intoxicating cannabinoids like delta-8 THC. The Senate Appropriations Committee’s recent hearing on July 10, 2025, marked a pivotal moment in this ongoing saga, as it approved a bill that could drastically alter the landscape for consumable hemp products. However, bipartisan agreement to delay the implementation of these restrictive measures until 2026 has given the industry a temporary reprieve—and a chance to rally. Here’s a deep dive into the Senate’s push to close the so-called “hemp loophole,” the proposed changes, the pushback from stakeholders, and what this means for the future of hemp.The Senate’s Move to Redefine HempThe 2018 Farm Bill was a landmark piece of legislation that legalized hemp by defining it as cannabis containing no more than 0.3% delta-9 THC on a dry-weight basis. This opened the door for a booming industry, now valued at nearly $30 billion, producing everything from non-intoxicating CBD products to intoxicating derivatives like delta-8 THC and THCA. These products, often sold in gas stations, vape shops, and online, have thrived in a regulatory gray area, particularly in states where recreational cannabis remains illegal.However, lawmakers, led by figures like Sen. Mitch McConnell (R-KY)—who ironically championed hemp legalization in 2018—now argue that the proliferation of intoxicating hemp products was an unintended consequence of the Farm Bill. The Senate Appropriations Committee’s fiscal year 2026 Agriculture, Rural Development, FDA, and Related Agencies Appropriations Bill includes provisions to redefine hemp in a way that would ban consumable products containing any “quantifiable” amount of THC or other cannabinoids with similar psychoactive effects. This language mirrors efforts in the House, spearheaded by Rep. Andy Harris (R-MD), who has called these products a public health concern, particularly for minors.The proposed changes would:
The Pushback: A Bipartisan Delay and Industry ResistanceThe hemp industry and its advocates have not taken these developments lightly. The Senate’s decision to include the hemp ban in its appropriations bill sparked immediate concern, with stakeholders warning that it could “devastate” a multi-billion-dollar industry that supports farmers, small businesses, and consumers. Organizations like the U.S. Hemp Roundtable have called the provisions a “blatant attack” on the legal hemp industry, arguing that they would criminalize not only intoxicating products but also non-intoxicating ones like CBD, which often contain trace THC due to extraction processes.
During the Senate hearing, Sen. Jeff Merkley (D-OR) voiced concerns that the ban’s language was overly broad, potentially impacting non-intoxicating products. This bipartisan sentiment led to a significant compromise: the Senate agreed to delay the implementation of the hemp ban for one year, pushing its potential enforcement to 2026. This delay offers a window for the industry to mobilize and propose alternative regulations that could preserve the market for non-intoxicating products while addressing concerns about unregulated intoxicating ones.
The U.S. Hemp Roundtable and other advocates are urging supporters to contact their senators to oppose the ban, emphasizing the need to protect jobs and economic contributions. Posts on X reflect the urgency, with users like
Critics, including lawmakers and law enforcement, argue that these products pose risks due to inconsistent potency, lack of testing, and accessibility to minors. A 2022 study found that 11.4% of 12th graders used delta-8 THC, with higher usage in states without regulations. Poison control centers reported 3,358 delta-8-related exposures in 2022, an 82% increase from 2021. Proponents of the ban, like Sen. McConnell and Rep. Harris, frame it as a necessary correction to protect public health and align with the original intent of the Farm Bill.
On the other hand, the hemp industry argues that a blanket ban would destroy legitimate businesses and harm consumers who rely on these products for health benefits. Farmers, retailers, and manufacturers emphasize that the industry supports tens of thousands of jobs and generates significant tax revenue. In Texas alone, the hemp sector is estimated to employ 50,000 people and contribute $8 billion annually. The industry is pushing for regulation—such as age restrictions, testing requirements, and licensing—over outright prohibition, as seen in states like Minnesota and Iowa, which cap THC content per serving.
What’s Next for the Hemp Industry?The one-year delay in the Senate’s hemp ban provides a critical opportunity for stakeholders to influence the final legislation. The bill must still pass the full Senate and be reconciled with the House version, which passed the House Appropriations Committee on June 23, 2025, in a 35-27 vote. The House version, championed by Rep. Harris, includes similar language but faced pushback from lawmakers like Rep. Dan Newhouse (R-WA), who highlighted the impact on licensed hemp farmers.
The hemp industry is likely to focus on several strategies:
The Bigger PictureThe Senate’s push to close the hemp loophole reflects a broader tension between public health concerns and economic interests. While lawmakers like McConnell and Harris argue that intoxicating hemp products undermine the 2018 Farm Bill’s intent, the industry counters that prohibition would stifle innovation and harm small businesses. The one-year delay is a lifeline, but it’s not a victory—it’s a call to action.For hemp businesses, farmers, and consumers, the next year will be critical. Engaging with lawmakers, refining product safety standards, and educating the public about the benefits of hemp could shape a more balanced outcome. As the debate moves forward, the hemp industry must navigate a complex landscape of federal and state regulations, public perception, and economic stakes to secure its future.Stay Informed and Get InvolvedIf you’re part of the hemp industry or a consumer who values these products, now is the time to act. Contact your senators, join advocacy efforts through organizations like the U.S. Hemp Roundtable, and stay updated on legislative developments. The fight for hemp’s future is far from over, and every voice counts.Sources: Information compiled from recent web reports and posts on X, including Cannabis Business Times, Marijuana Moment, and Forbes.
- Shift the 0.3% THC cap from delta-9 THC specifically to total THC (including THCA and other isomers like delta-8 and delta-10).
- Prohibit products containing synthetic or manufactured cannabinoids outside the plant.
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Ban any hemp-derived cannabinoid product with “quantifiable” amounts of THC or similar intoxicating compounds, with the definition of “quantifiable” left to the discretion of the Secretary of Health and Human Services in consultation with the Secretary of Agriculture.
@HempMillionaire
noting the delay as a “huge” development but warning that the fight is far from over. Meanwhile, prohibitionist groups like Smart Approaches to Marijuana (SAM) have celebrated the Senate’s move as a “marquee win for public health,” citing risks like youth access and poison control calls related to delta-8 products.Why the Loophole Debate MattersThe debate over the “hemp loophole” centers on the unintended consequences of the 2018 Farm Bill. While the legislation aimed to support industrial hemp for uses like fiber, grain, and CBD, it inadvertently allowed the production of intoxicating derivatives like delta-8 THC, which is synthesized from hemp-derived CBD. These products have exploded in popularity, especially in states like Texas, where recreational cannabis is illegal, creating a multi-billion-dollar market with minimal oversight.
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Advocacy and Lobbying: Groups like the U.S. Hemp Roundtable are mobilizing supporters to contact lawmakers and push for amendments that preserve non-intoxicating products.
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Legal Challenges: In states like Texas, where a similar ban was vetoed by Gov. Greg Abbott in favor of regulation, the industry is preparing lawsuits to protect its interests.
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Regulatory Proposals: Stakeholders are advocating for a framework that regulates rather than bans hemp products, such as setting THC caps, requiring lab testing, and restricting sales to adults.