(NewsNation) — New legislation overhauled the rules around hemp, and it could wipe out an entire category of THC products nationwide.
The shutdown deal did more than reopen the government. Lawmakers added language that closes what they call the “Farm Bill loophole,” which allowed sales of hemp-derived THC products such as delta-8 and delta-9 to explode nationwide.
Under the new rule, any hemp product with more than 0.4 milligrams of THC per container becomes illegal. That wipes out nearly all edibles, vapes, beverages and gummies currently on shelves.
In Texas, the lieutenant governor recently pushed hard to ban these products, but Gov. Greg Abbott vetoed that measure, saying the industry instead needs regulation. Washington may have settled the debate for them.
But parent groups and recovery organizations have called the recently passed legislation a win, pointing to sharp increases in teen use, poison control calls and packaging resembling candy.
They argued the market grew too fast with almost no oversight.
“Congress never intended to legalize marijuana just by a different small chemical formulation. At the end of the day, legalizing these products, whether it’s hemp-derived or marijuana-derived, it’s about money for a small number of people,” said Kevin A. Sabet, president and CEO of Smart Approaches to Marijuana.
However, business owners argue the ban could crater Texas’s $8 billion industry and jeopardize hundreds of thousands of jobs nationwide.
“It’s DEFCON 1 around here. I know a lot of other business owners in Alabama, some of them have left the state or are leaving in January, and a lot of people just barely have anything on the shelves,” said Jennifer Boozer, founder of CannaBama in Mobile, Alabama.
As companies rush to reformulate or shut down to stay under that 0.4-milligram limit, legal challenges are expected to follow.