In a major win for the US hemp industry, language which could have seen ‘90-95%’ of hemp products banned has been removed from a major US agricultural funding bill.
The ongoing battle over the future of hemp in the US has now passed a significant rubicon, as Senate Appropriations Agriculture-FDA subcommittee Chair John Hoeven confirmed on Tuesday that language set to significantly restrict the sale of hemp-derived products containing any detectable amount of THC had been stripped.
On Friday (August 01), in a push to break the multi-day deadlock and ensure passage of appropriations bills before the August recess, the Agriculture-FDA bill was passed by 87-9.
“The removal of language that would have redefined hemp and resulted in the destruction of the industry is a huge win for everyone. Congress is keeping the promise they made to American farmers and reaffirming support for a growing industry,” said Jonathan Miller, general counsel to the US Hemp Roundtable.
“A ban would only destroy the progress made by small businesses and farmers over the past decade while failing to protect consumers from bad actors.”
The measure, originally introduced by Senate Minority Leader Mitch McConnell, aimed to close a regulatory loophole created by the 2018 Farm Bill, which has enabled the rapid spread of hemp-derived intoxicants such as delta-8 THC to proliferate under far looser controls than cannabis products regulated at the federal level.
McConnell, who has signalled that agricultural policy, particularly hemp regulation, is a key legacy priority ahead of his expected retirement in 2026, had pushed for new limits on allowable THC levels in hemp products as part of this year’s agriculture appropriations package.
However, the proposal drew fierce opposition from fellow Kentuckian Sen. Rand Paul, who warned it would ‘destroy’ a hemp industry that has expanded rapidly since the 2018 reforms. Paul threatened to block passage of the wider funding bill unless the hemp provision was removed.
With no compromise in sight, Hoeven confirmed on Tuesday (August 29) that the language had been removed to ensure the bill’s progression.
Hemp’s place in US agricultural and drug policy has become increasingly fraught since Congress legalised the crop in 2018. While the law removed hemp from the list of controlled substances, it inadvertently created a grey market for psychoactive cannabinoids such as delta-8 and delta-10 THC, substances synthesised from legal hemp extracts but which produce intoxicating effects similar to cannabis.
Anthony Coniglio, co-founder and CEO of NewLake Capital Partners, and one of the industry’s leading voices on cannabis capital markets and regulatory strategy, told Business of Cannabis: “One of the biggest challenges facing intoxicating hemp is the reputation it’s gained, the catchphrase ‘gas station weed’ really sums it up. That perception alone is hugely damaging to the legitimacy of the industry.”
For months, advocacy groups like the US Hemp Roundtable have cautioned against regulatory overreach at a federal level, whereby efforts to regulate intoxicating hemp substances ultimately see legitimate industrial hemp businesses caught up in the crackdown.
This remains one of the key issues around how hemp is regulated, as non-intoxicating hemp can relatively easily be turned into these substances.
“There’s a real concern that this is being driven, in part, by organised crime, specifically Chinese and Mexican cartels. We’ve seen reports of HHC and THC-A being imported into hemp products from overseas,” Coniglio continued.
As such, both industries are often conflated, effectively seeing a number of bad actors damage the reputation and freedom of the entire hemp industry.
“I’m not sure how closely linked they are — it’s been difficult to gauge how many hemp farmers are actually supplying the intoxicating hemp market versus other uses.
“But I do sympathise with the frustration over the arbitrary 0.3% THC limit. You can’t always control that. Sometimes you invest time and money into a crop, only to end up with a ‘hot’ plant that has to be destroyed, through no real fault of your own.”
Despite this, he cautioned: “When you put it all together, it spells doom for the intoxicating hemp industry. For me, the only real question now isn’t whether regulation is coming, it’s what will be regulated and what will be outright banned.”=
While this is a significant win for the industry, the battle will recommence once the recess is over, and advocates are now focusing on drafting effective regulation for intoxicating hemp products, to avoid further efforts to impose a blanket ban.
“We hope these discussions will serve as a helpful framework moving forward as we work with Congress to pass robust regulations rather than prohibit products consumers rely on,” added Miller.
Now, the coalition says it is ‘dedicated to establishing a federal safety framework’.
The post ‘Huge Win’ for US Hemp Industry as Senate Removes Hemp-Killing Language from Funding Bill appeared first on Business of Cannabis.
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The ongoing battle over the future of hemp in the US has now passed a significant rubicon, as Senate Appropriations Agriculture-FDA subcommittee Chair John Hoeven confirmed on Tuesday that language set to significantly restrict the sale of hemp-derived products containing any detectable amount of THC had been stripped.
On Friday (August 01), in a push to break the multi-day deadlock and ensure passage of appropriations bills before the August recess, the Agriculture-FDA bill was passed by 87-9.
“The removal of language that would have redefined hemp and resulted in the destruction of the industry is a huge win for everyone. Congress is keeping the promise they made to American farmers and reaffirming support for a growing industry,” said Jonathan Miller, general counsel to the US Hemp Roundtable.
“A ban would only destroy the progress made by small businesses and farmers over the past decade while failing to protect consumers from bad actors.”
The measure, originally introduced by Senate Minority Leader Mitch McConnell, aimed to close a regulatory loophole created by the 2018 Farm Bill, which has enabled the rapid spread of hemp-derived intoxicants such as delta-8 THC to proliferate under far looser controls than cannabis products regulated at the federal level.
McConnell, who has signalled that agricultural policy, particularly hemp regulation, is a key legacy priority ahead of his expected retirement in 2026, had pushed for new limits on allowable THC levels in hemp products as part of this year’s agriculture appropriations package.
However, the proposal drew fierce opposition from fellow Kentuckian Sen. Rand Paul, who warned it would ‘destroy’ a hemp industry that has expanded rapidly since the 2018 reforms. Paul threatened to block passage of the wider funding bill unless the hemp provision was removed.
With no compromise in sight, Hoeven confirmed on Tuesday (August 29) that the language had been removed to ensure the bill’s progression.
The Senate Ag Appropriations bill no longer includes the hemp-killing language. All thanks to Senator@RandPaul.
But this fight isn’t over. The threat will return after recess. In the meantime, sign our petition to thank Sen. Paul:https://t.co/jxFTGLzcHg pic.twitter.com/18zxu1ZMKx
— US Hemp Roundtable (@HempRoundtable) July 29, 2025
Hemp’s place in US agricultural and drug policy has become increasingly fraught since Congress legalised the crop in 2018. While the law removed hemp from the list of controlled substances, it inadvertently created a grey market for psychoactive cannabinoids such as delta-8 and delta-10 THC, substances synthesised from legal hemp extracts but which produce intoxicating effects similar to cannabis.
Anthony Coniglio, co-founder and CEO of NewLake Capital Partners, and one of the industry’s leading voices on cannabis capital markets and regulatory strategy, told Business of Cannabis: “One of the biggest challenges facing intoxicating hemp is the reputation it’s gained, the catchphrase ‘gas station weed’ really sums it up. That perception alone is hugely damaging to the legitimacy of the industry.”
For months, advocacy groups like the US Hemp Roundtable have cautioned against regulatory overreach at a federal level, whereby efforts to regulate intoxicating hemp substances ultimately see legitimate industrial hemp businesses caught up in the crackdown.
This remains one of the key issues around how hemp is regulated, as non-intoxicating hemp can relatively easily be turned into these substances.
“There’s a real concern that this is being driven, in part, by organised crime, specifically Chinese and Mexican cartels. We’ve seen reports of HHC and THC-A being imported into hemp products from overseas,” Coniglio continued.
As such, both industries are often conflated, effectively seeing a number of bad actors damage the reputation and freedom of the entire hemp industry.
“I’m not sure how closely linked they are — it’s been difficult to gauge how many hemp farmers are actually supplying the intoxicating hemp market versus other uses.
“But I do sympathise with the frustration over the arbitrary 0.3% THC limit. You can’t always control that. Sometimes you invest time and money into a crop, only to end up with a ‘hot’ plant that has to be destroyed, through no real fault of your own.”
Despite this, he cautioned: “When you put it all together, it spells doom for the intoxicating hemp industry. For me, the only real question now isn’t whether regulation is coming, it’s what will be regulated and what will be outright banned.”=
While this is a significant win for the industry, the battle will recommence once the recess is over, and advocates are now focusing on drafting effective regulation for intoxicating hemp products, to avoid further efforts to impose a blanket ban.
“We hope these discussions will serve as a helpful framework moving forward as we work with Congress to pass robust regulations rather than prohibit products consumers rely on,” added Miller.
Now, the coalition says it is ‘dedicated to establishing a federal safety framework’.
The post ‘Huge Win’ for US Hemp Industry as Senate Removes Hemp-Killing Language from Funding Bill appeared first on Business of Cannabis.
Continue reading...
