The temporary federal funding bill that the Senate approved late Monday contains language that would effectively end the multibillion-dollar, hemp-derived THC industry. The bill, which still needs House approval, closes a loophole in the 2018 Farm Bill that allowed the sale of psychoactive substances derived from hemp plants.
The new bill’s language redefines “hemp” to exclude intoxicating products like THCA and delta-8 THC. Both chemicals are similar to the psychoactive chemical in traditional cannabis that gives users a high.
Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.
Point phone camera here
Sen. Rand Paul, R-Ky., tried to remove the language because he said it would eliminate jobs and hurt farmers. He said the ban amounts to government overreach.
“The hemp provision in this appropriations package wipes out nearly 100% of legal hemp products overnight: killing jobs, crushing farmers, and overriding 23 state laws that already regulate hemp responsibly,” Paul wrote on social media.
The hemp provision in this appropriations package wipes out nearly 100% of legal hemp products overnight: killing jobs, crushing farmers, and overriding 23 state laws that already regulate hemp responsibly.
— Senator Rand Paul (@SenRandPaul) November 11, 2025
Our farmers have turned to hemp as a lifeline when fertilizer, fuel, and… pic.twitter.com/JDrC0HVX7X
The White House told NBC News that President Donald Trump supports the language in the bill regarding hemp.
Straight Arrow News spoke to Smart Approaches to Marijuana (SAM), a group involved in drafting the new language. Jordan Davidson, the government affairs director of the group, said the plan has a one-year implementation period that would allow producers and sellers of these products to adapt to the changes. He also said that these products were never the intent when lawmakers passed the bill in 2018.
“No legislator at the time of creating the 2018 farm bill intended for this industry to be created,” Davidson said. ”This was created by bad actors who exploited the legislative intent.”
While some groups have pushed for regulating hemp-derived THC products, SAM disagrees. Davidson believes regulation normalizes the drug, potentially leading to more users and addiction.
“Preventing these products is going to drive down use,” he said. “It’s going to drive down the normalization of the product, and it’s not going to create an open space for companies hoping to addict consumers.”
What is the ban?
Some states have banned hemp THC products, but federal law allows their sale if they contain no more than 0.3% THC by dry weight. The Senate bill would change that and impose a total THC limit of 0.4 milligrams. This would effectively ban these products for consumer use.
The ban would overrule any state laws that allowed the sale of the products. However, it would not affect state medical or recreational cannabis laws.
According to the Brightfield Group, a marketing firm that works in the cannabis industry, hemp-derived THC sales surpassed $3 billion nationally in 2024. Whitney Economics, a research firm that studies the industry, said the total demand for hemp-derived cannabinoids, which also includes CBD and other products, is estimated at more than $28 billion. The industry employs nearly 330,000 workers.
“Overall, the total economic impact of the hemp-derived cannabinoid industry on the U.S. economy is in excess of $79 billion,” Whitney Economics wrote. “While they may seem large, these estimates are actually conservative, because they do not account for demand and employment from gas stations, grocery stores and convenience stores.”
Paul said farmers in his state are part of that industry.
“Our farmers have turned to hemp as a lifeline when fertilizer, fuel, and equipment costs skyrocketed and crop prices fell,” Paul wrote. “Instead of working with us to crack down on bad actors and synthetic cannabinoids, some in Congress chose prohibition.”
Who supported the ban?
Speaking to reporters on Monday, Paul blamed his fellow Kentucky Republican, Sen. Mitch McConnell, for the ban.
“The legislation as written, has language in it from Senator McConnell that would destroy the hemp industry,” Paul said. “We have hemp farmers in our state.”
McConnell initially advocated for the hemp rule as lawmakers debated the 2018 Farm Bill. Earlier this year, however, he said the provision had unintended consequences that allowed “intoxicating hemp-derived synthetic products” to be sold.
At least 39 state attorneys general have called on lawmakers to close the loophole. Many of them say it allows minors to purchase these products at gas stations and convenience stores, which may not be strict about checking age requirements.
The vast majority of Americans support marijuana legalization, although support has dipped, according to a recent Gallup poll. In 2023, 70% of Americans supported legalization, but in 2025, that dropped to 64%.
Among Republicans, support fell 55% to 40% during that same period. Democratic support for legalization dropped from 87% to 85%.
