The ongoing battle to rescue the US hemp industry has reached boiling point, as the 2026 spending bill continues to advance.
As seen in a growing number of US states taking action to regulate the booming ‘intoxicating hemp industry’, Federal efforts to do so have significantly overreached, and now threaten to decimate the non-intoxicating and industrial hemp industry across the country.
Last week, Business of Cannabis reported that a controversial spending bill that would redefine hemp under federal law had advanced through a Republican-led US House committee, pushing the industry a step closer to potential ruin.
At the heart of the controversy is language embedded in the House Appropriations Committee’s Fiscal Year 2026 agriculture funding bill.
The original draft redefined hemp in a way that would exclude any product containing a ‘quantifiable’ amount of THC or cannabinoids with similar effects, irrespective of the widely accepted 0.3% THC limit for industrial hemp established under the 2018 Farm Bill.
After industry backlash, the committee adopted a ‘manager’s amendment’ clarifying that non-intoxicating hemp products with only trace THC were not intended to be affected.
Despite the efforts to clarify, industry leaders say this has done little to alleviate concern and has added to the confusion.
“The report language has no binding legal impact, and the FDA has routinely ignored such language in the past,” said Jonathan Miller, general counsel for the US Hemp Roundtable.
“This threatens to eliminate not just intoxicating hemp, but a wide swathe of compliant, non-intoxicating CBD products that millions rely on.”
Others argue that many non-intoxicating hemp products are still likely to be swept up under the bill’s vague terminology.
Analysts also fear a repeat of the regulatory ambiguity that followed the 2018 Farm Bill, legislation originally intended to support industrial hemp, but which inadvertently opened the door to a booming market in psychoactive hemp derivatives like delta-8 THC.
Viridian Capital Advisors, in a June 16 briefing, highlighted the economic stakes. Its recent analysis estimated that only $5.75 billion of the $19.6 billion hemp-derived market would likely migrate to the legal cannabis sector if hemp intoxicants were banned nationwide.
“This isn’t the $19 billion windfall some cannabis operators are hoping for,” Viridian stated. “In fact, many consumers may simply return to the illicit market rather than navigate higher prices, inconvenient access, or the need for medical certification.”
States with limited medical cannabis programs, like Texas, are projected to see the smallest shift toward legal cannabis. In contrast, recreational states may capture up to half of lost hemp sales. But enforcement challenges and entrenched consumer behavior present headwinds. “There’s a large segment of the market that values price and convenience above perceived safety,” Viridian concluded.
The regulatory push has drawn fire beyond the hemp industry. The Wine & Spirits Wholesalers of America (WSWA), a major alcohol lobby, issued a rare rebuke of the proposed changes, warning that an overcorrection could drive intoxicating products underground.
“Congress is creating even more chaos in the marketplace,” said WSWA President Francis Creighton, urging legislators to allow states to regulate the market rather than impose sweeping federal bans.
Rep. Andy Harris (R-MD), chair of the appropriations subcommittee overseeing agriculture and FDA funding, defended the language as necessary to close ‘the hemp loophole’ that has led to ‘the proliferation of intoxicating cannabinoid products… in gas stations nationwide under the false guise of being USDA-approved.’ His office insists the amendment strikes a balance between closing loopholes and protecting industrial hemp.
Still, with Congress now in recess and a final vote on the bill delayed, the future of the measure remains uncertain. As legislative language evolves, one constant remains: a rapidly growing, highly fragmented industry now faces one of its most significant existential threats since its inception.
The post Congress Amends Language of Potential Hemp-Killing Bill, But Industry Warns Non-Intoxicating Hemp Still Under Existential Threat appeared first on Business of Cannabis.
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As seen in a growing number of US states taking action to regulate the booming ‘intoxicating hemp industry’, Federal efforts to do so have significantly overreached, and now threaten to decimate the non-intoxicating and industrial hemp industry across the country.
Last week, Business of Cannabis reported that a controversial spending bill that would redefine hemp under federal law had advanced through a Republican-led US House committee, pushing the industry a step closer to potential ruin.
At the heart of the controversy is language embedded in the House Appropriations Committee’s Fiscal Year 2026 agriculture funding bill.
The original draft redefined hemp in a way that would exclude any product containing a ‘quantifiable’ amount of THC or cannabinoids with similar effects, irrespective of the widely accepted 0.3% THC limit for industrial hemp established under the 2018 Farm Bill.
After industry backlash, the committee adopted a ‘manager’s amendment’ clarifying that non-intoxicating hemp products with only trace THC were not intended to be affected.
Despite the efforts to clarify, industry leaders say this has done little to alleviate concern and has added to the confusion.
“The report language has no binding legal impact, and the FDA has routinely ignored such language in the past,” said Jonathan Miller, general counsel for the US Hemp Roundtable.
“This threatens to eliminate not just intoxicating hemp, but a wide swathe of compliant, non-intoxicating CBD products that millions rely on.”
Others argue that many non-intoxicating hemp products are still likely to be swept up under the bill’s vague terminology.
Analysts also fear a repeat of the regulatory ambiguity that followed the 2018 Farm Bill, legislation originally intended to support industrial hemp, but which inadvertently opened the door to a booming market in psychoactive hemp derivatives like delta-8 THC.
Viridian Capital Advisors, in a June 16 briefing, highlighted the economic stakes. Its recent analysis estimated that only $5.75 billion of the $19.6 billion hemp-derived market would likely migrate to the legal cannabis sector if hemp intoxicants were banned nationwide.
“This isn’t the $19 billion windfall some cannabis operators are hoping for,” Viridian stated. “In fact, many consumers may simply return to the illicit market rather than navigate higher prices, inconvenient access, or the need for medical certification.”
States with limited medical cannabis programs, like Texas, are projected to see the smallest shift toward legal cannabis. In contrast, recreational states may capture up to half of lost hemp sales. But enforcement challenges and entrenched consumer behavior present headwinds. “There’s a large segment of the market that values price and convenience above perceived safety,” Viridian concluded.
The regulatory push has drawn fire beyond the hemp industry. The Wine & Spirits Wholesalers of America (WSWA), a major alcohol lobby, issued a rare rebuke of the proposed changes, warning that an overcorrection could drive intoxicating products underground.
“Congress is creating even more chaos in the marketplace,” said WSWA President Francis Creighton, urging legislators to allow states to regulate the market rather than impose sweeping federal bans.
Rep. Andy Harris (R-MD), chair of the appropriations subcommittee overseeing agriculture and FDA funding, defended the language as necessary to close ‘the hemp loophole’ that has led to ‘the proliferation of intoxicating cannabinoid products… in gas stations nationwide under the false guise of being USDA-approved.’ His office insists the amendment strikes a balance between closing loopholes and protecting industrial hemp.
Still, with Congress now in recess and a final vote on the bill delayed, the future of the measure remains uncertain. As legislative language evolves, one constant remains: a rapidly growing, highly fragmented industry now faces one of its most significant existential threats since its inception.
The post Congress Amends Language of Potential Hemp-Killing Bill, But Industry Warns Non-Intoxicating Hemp Still Under Existential Threat appeared first on Business of Cannabis.
Continue reading...
