Archive · 12 Nov 2025
Senate Funding Bill Threatens Hemp Industry, Re-criminalizes Intoxicating Products
Imagine the government needed money to stay open, so they made a deal.
Part of this deal includes a new rule about hemp, which is a plant used for many things, like making ropes or even special oils people use.
The government's new rule says that certain hemp products that can make people feel a bit dizzy or high, like Delta-8, can no longer be sold easily in stores or online.
This is different from a few years ago when a big law called the Farm Bill made most hemp products legal.
Some politicians and people who work in the hemp business are very unhappy because they say this rule will hurt farmers and businesses that make these products.
They believe it will cause many people to lose their jobs and the country to lose money from taxes.
However, the people who made the rule say it's important to stop these intoxicating products from being sold everywhere without any rules.
They want to make sure that only the safe, non-dizzying hemp products, like CBD, are easy to find.
A US Senate funding bill includes a provision to re-criminalize intoxicating hemp-derived products like Delta-8.
This measure, passed late Monday, threatens the $28 billion US hemp industry and contradicts the 2018 Farm Bill's legalization.
Senator Rand Paul's amendment to remove the provision failed, with only two senators voting in favor.
Hemp industry advocates warn of significant revenue loss (up to $1.5 billion in taxes), job cuts, and the destruction of livelihoods.
The bill, which aims to end the government shutdown, will now move to the House of Representatives for consideration.
- Who
- US Senate, Senator Rand Paul, Senator Ted Cruz, hemp farmers, hemp industry producers and manufacturers, consumers of hemp products.
- What
- A provision within a Senate funding bill aims to re-criminalize intoxicating hemp-derived products, potentially dismantling a significant portion of the $28 billion hemp industry.
- When
- The funding package passed the Senate late Monday; the bill now moves to the House of Representatives.
- Where
- Washington D.C. (US Senate); impacting the US hemp industry nationwide.
- Why
- To prevent the unregulated sale of intoxicating hemp-based products, while unintentionally (or intentionally, depending on perspective) impacting the broader hemp industry and its economic contributions.
Senator Rand Paul and Hemp Industry Advocates
Senate Appropriations Committee and Supporters of the Funding Bill
Impact on Hemp Industry and Farmers
Senator Rand Paul and Hemp Industry Advocates
Senator Paul argues the provision overrides state regulations, cancels consumer choices, and will destroy the livelihoods of hemp farmers and producers, particularly during difficult times. The hemp industry fears significant revenue and job losses.
Senate Appropriations Committee and Supporters of the Funding Bill
The Senate Appropriations Committee's summary indicates the provision prevents the 'unregulated sale of intoxicating hemp-based or hemp-derived products,' preserving non-intoxicating CBD and industrial hemp products. The intent is to regulate rather than ban, focusing on intoxicating substances.
Regulation of Hemp-Derived Products
Senator Rand Paul and Hemp Industry Advocates
Critics view the measure as a de facto ban that could lead to significant economic losses, job cuts, and a loss of tax revenue. It's seen as overriding states' decisions and impacting a $28 billion industry.
Senate Appropriations Committee and Supporters of the Funding Bill
The provision aims to stop the 'unregulated sale' of intoxicating hemp products like Delta-8, which are currently available in various retail locations. The goal is to prevent their widespread, unregulated distribution while allowing for non-intoxicating hemp products.
- Legislation Origin
- Funding package passed by the US Senate to end federal government shutdown.
- Key Provision Impact
- Re-criminalizes certain intoxicating hemp-derived substances, impacting products like Delta-8.
- Original Hemp Legalization
- Legalized in 2018 under the Farm Bill.
- Excluded Products
- Non-intoxicating CBD and industrial hemp products are preserved.
- Senator Opposing Provision
- Rand Paul (amendment failed with only 2 votes).
- US Hemp Industry Value
- $28 billion
- Potential Revenue Loss
- Up to $1.5 billion in tax revenue.
- Affected States
- Kentucky, Tennessee, North Carolina, Colorado, Oregon.
Sources
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