Senate Deal to Reopen Government Includes Ban on Intoxicating Hemp Products, Raising Industry Concerns
Intoxicating hemp products could face sweeping federal restrictions under a three-bill spending package negotiated by the U.S. Senate to end the ongoing government shutdown. Lawmakers reached a procedural 60-40 vote for the continuing resolution on Nov. 9, with eight Democrats breaking party lines to overcome a filibuster.
The federal government has been partially shut down since Oct. 1 amid partisan disputes over taxes, health care, and other key issues. The continuing resolution would provide funding through Jan. 30, 2026, and includes full-year appropriations for three fiscal 2026 bills: the Agriculture, Rural Development, and Food and Drug Administration (FDA) Appropriations Act; the Military Construction, Veterans Affairs (MilCon-VA) Appropriations Act; and a legislative branch funding bill.
Agricultural Spending Bill Now Targets Hemp Derived THC Products With Stricter Rules
While the Senate initially passed this three-bill “minibus” package in August without hemp-related provisions, the updated Nov. 9 version of the agricultural FDA spending bill includes nearly $26.7 billion in nondefense funding for farmers, rural communities, nutrition programs, and medical research—and a prohibition on intoxicating hemp products.
According to the Senate Appropriations Committee summary, the bill would ban the sale of intoxicating hemp-derived cannabinoids, including delta-8 THC, in retail settings such as gas stations, convenience stores, and online outlets. Nonintoxicating CBD and industrial hemp products would remain legal.
Under the legislation, any hemp-derived cannabinoids intended for human or animal use—whether inhaled, ingested, or applied topically must be naturally occurring and cannot exceed 0.3% total THC. Finished products sold to consumers could not contain more than 0.4 milligrams of THC per container, a measure designed to close perceived “loopholes” created by the 2018 Farm Bill.
Provisions Define “Container” and Restrict Synthetic Cannabinoids
The bill defines “container” as the innermost packaging in direct contact with the product, including jars, bottles, bags, cartons, or cartridges. Products containing synthetic or lab-made cannabinoids are prohibited, while only naturally occurring cannabinoids are allowed.
These measures aim to prevent the proliferation of unregulated intoxicating hemp products, which critics say have flooded retail markets without adequate safety standards. Lawmakers, including Sen. Mitch McConnell (R-Ky.), have long argued that the original 2018 Farm Bill was intended to legalize hemp for agricultural purposes, not to authorize recreational hemp-derived THC sales.
Industry Pushback: U.S. Hemp Roundtable Warns of Recriminalization
The U.S. Hemp Roundtable (USHR) strongly opposed the new provisions, warning that the ban would jeopardize a $28 billion domestic industry employing 300,000 Americans. According to USHR, the legislation could eliminate up to 95% of current hemp-derived cannabinoid businesses and result in $1.5 billion in lost state tax revenue.
“Our industry is being used as a pawn as leaders work to reopen the government,” said USHR General Counsel Jonathan Miller. “Recriminalizing hemp will force American farms and businesses to close and disrupt the well-being of countless Americans who depend on hemp.”
Sen. Rand Paul, R-Ky., has also voiced strong opposition to the ban, promising to submit an emergency amendment to remove the intoxicating hemp product provisions. He was the lone Republican to vote against the continuing resolution on Nov. 9, citing concerns over national debt and industry impact.
Legislative Negotiations Highlight Ongoing Partisan Tensions
While Senate Appropriations Committee Chair Susan Collins, R-Maine, secured support from Democratic ranking member Sen. Patty Murray, D-Wash., for the minibus spending deal, Murray ultimately voted against the resolution. She cited the need for continued negotiations on health care funding.
Collins emphasized the urgency of reopening the government, highlighting the risk to vital nutrition programs and social services. “One of the most unfortunate and shameful consequences of this shutdown has been that these vital nutrition programs were in jeopardy for our most vulnerable families, including 170,000 Mainers who rely on the SNAP program,” she said during a floor speech on Nov. 9.
Next Steps: Hemp Industry Faces Uncertain Future Amid Continuing Government Negotiations
Even with the procedural vote cleared, the final passage of the continuing resolution could be delayed if any senator exercises procedural rights to slow consideration. Meanwhile, hemp-derived cannabinoid businesses face immediate uncertainty over regulatory compliance and potential business plan overhauls if the provisions are enacted.
Industry advocates, including the USHR, continue to lobby for a federally regulated market for intoxicating hemp products, emphasizing that prohibition could push consumers to unregulated channels, undermining both public safety and economic growth.
As Congress works to finalize funding through the end of January, the debate over intoxicating hemp remains a flashpoint, demonstrating the continued tension between federal oversight and the growing commercial hemp industry.
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