Texas Advances Hemp Regulations Even Amid Federal THC Pushback

Texas Pushes Ahead With Hemp Regulations Despite Looming Federal THC Crackdown

Texas — home to the nation’s largest market for hemp derived THC is moving forward with new state regulations even as the federal government prepares to impose sweeping restrictions that could upend the entire industry.

The $8 billion Texas hemp sector, built rapidly following the legalization of hemp under the 2018 Farm Bill, now faces a dramatic shift. A newly passed federal provision, included in the recent funding bill signed by President Donald Trump, will effectively ban hemp-derived cannabinoid products containing more than 0.4 milligrams of total THC per container, a threshold so low that it would make most products, including many CBD formulas, federally illegal.

According to The Texas Tribune, the change is set to take effect in November 2025, setting up a direct collision with Texas law and business activity.

Texas Moves Forward With State Regulations Amid Federal Uncertainty

Despite the looming federal ban, the Texas Alcoholic Beverage Commission (TABC) is proceeding with its plan to establish permanent state regulations to replace temporary emergency rules issued in September.

The TABC’s actions follow Gov. Greg Abbott’s executive order, which directed the agency and the Department of State Health Services to implement stricter oversight of hemp-derived THC products sold in Texas.

The governor’s directive requires:

• Age restrictions for THC-containing hemp products

• Mandatory ID checks to purchase hemp-derived intoxicants

• Expanded enforcement targeting noncompliant retailers

Public comments on the proposed rules will be accepted through January, and officials expect to hold a final vote soon after.

Industry Stakeholders Warn of Economic Fallout But Support State-Level Stability

Hemp advocates and business leaders say Texas’ regulatory approach is necessary to provide stability to an industry now shaken by federal policy.

Veteran and hemp advocate Shaun Salvaje told state regulators the new rules help safeguard an industry “built by Texans for Texans,” and warned that without clear state guidance, businesses would lose the ability to operate responsibly.

The Texas Hemp Business Council, representing dozens of manufacturers and retailers, said it will fight the federal ban, arguing it threatens to dismantle a thriving economic sector and impede scientific progress around hemp-derived cannabinoids.

State Leaders Push Back Against Federal Ban, Warn of Harm to Texas Businesses

Texas Agriculture Commissioner Sid Miller, a longtime supporter of hemp agriculture, has criticized the federal crackdown and urged Congress to repeal the provision before it takes effect.

Miller argues the ban would:

• Devastate small farms and processing facilities

• Eliminate thousands of Texas jobs

• Push consumers to unregulated markets

• Stifle ongoing agricultural and cannabinoid research

The commissioner has called the federal language “overly broad” and “misaligned with the intent” of the original 2018 hemp legalization framework.

Texas’ Path Forward: Regulation, Not Prohibition

As legal battles and political disputes escalate nationwide, Texas appears committed to a regulatory approach rather than outright prohibition.

State lawmakers, agencies, and industry groups have emphasized:

• Consumer safety through regulation, rather than bans

• Economic preservation of a major Texas industry

• State sovereignty in overseeing hemp products within Texas borders

For now, businesses are preparing for both scenarios: adapting to Texas’ clearer regulatory landscape while bracing for a federal policy shift that could dramatically reshape or even erase the market they’ve spent years building.

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