But that momentum seems to be slowing down. buried in that hole The federal government shutdown has ended. The bill this month was to ban those beverages, along with other harmful beverages and snacks made from cannabis that have proliferated across the country in recent years. Now the $24 billion marijuana industry is struggling to save itself before the provision takes effect in November 2026.
“This is a big deal,” said Ryan Bandy, chief business officer of Indeed. “It would be a mess for our breweries, our industry and obviously a lot of people who love these things.”
Learn about restrictions on harmful cannabis-derived products here.
Congress opened the door in 2018
Marijuana and hemp are of the same species. Marijuana is cultivated for the high levels of THC in its flowers. Low-THC hemp is grown for its strong fiber, food or health products. “Rope, not dope” was long the motto of farmers who supported hemp legalization.
After states began legalizing marijuana for adult use a decade ago, cannabis advocates saw an opening up at the federal level. As part of the 2018 farm bill, Congress legalized the cultivation of industrial hemp to give farmers a new cash crop, including in Kentucky, the home state of Republican Senator Mitch McConnell.
follow up
But the way that law defined cannabis – as having less than 0.3% of a specific type of THC, called delta-9 – opened a huge loopholeBags of beverages or snacks can meet that limit and still contain more than enough THC to get people intoxicated, Businesses can further take advantage of the law by extracting a non-harmful compound called CBD and chemically converting it into another type of harmful THC, such as delta-8 or delta-10,
outcome? Vape oils, gummy candies, chips, cookies, sodas and other unregulated, unapproved products containing hemp-derived THC spread across the countryIn many places, they are available at gas stations or convenience stores, even for teenagers, In legal marijuana states, they reduce heavily taxed and regulated products, In others, he touted bans on recreational use of weed,
Some states, including Indiana Spikes have been reported Calling poison-control centers for THC exposure in children.
a patchwork of state rules
Dozens of states have since taken steps to regulate or ban harmful hemp products. In October, Democratic California Governor Gavin Newsom signed a bill banning the sale of intoxicating hemp products outside the state’s legal marijuana system.
Texas, where there is a huge marijuana market moving to regulate Limiting the sale of cannabis that causes harm, such as limiting them to those over the age of 21. In Nebraska, lawmakers have instead considered criminalizing bill Sale and possession of hemp-based products containing THC.
Washington State adopted a program to regulate hemp cultivation. But the number of licensed producers has dwindled since the state banned intoxicating cannabis products outside the regulated cannabis market in 2023. Five years ago, there were 220, said Trecia Ehrlich, hemp program manager for the state Department of Agriculture. This year, there were 42, and with a federal ban looming, he expects that number to nearly halve next year.
minnesota Infused beverages and foods made legal For those aged 21 and older in 2022. The products, which must be derived from legally certified hemp, have become so popular that Target is now offering THC drinks at some of its stores in the state.
Bandy said they’ve also been a boon for liquor stores and small Minneapolis brewers like Indeed, where THC beverages make up about a quarter of the business. At Bauhaus Brew Labs, a few blocks away, THC drinks contribute 26% of its revenue from delivered products and 11% of revenue in the brewery’s taproom.
A powerful senator moves to close the loophole
When McConnell helped craft the 2018 Farm Bill, this was not his intention. They eventually closed the loophole by imposing a federal hemp THC ban End the 43-day federal government shutdown.Approved by the Senate on November 10.
“This will keep these dangerous products out of the hands of children, while preserving the hemp industry for farmers,” McConnell said. “Industrial hemp and CBD will remain legal for industrial applications.”
Some in the legal marijuana industry celebrated, as the ban would eliminate what they consider unfair competition.
he was joined the prohibitionists“There’s really no good argument for allowing these dangerous products to be sold in our country,” said Kevin Sabet, president and CEO of Smart Approaches to Marijuana,
But this ban does not come into effect for one year. This has given the industry hope that there is still time to pass regulations that will improve the cannabis THC industry – such as banning synthetically derived THC, requiring age restrictions on sales, and prohibiting marketing to children – rather than dismantling it.
“We are fully hopeful that cooler heads will prevail,” said Jonathan Miller, general counsel for the industry group U.S. Hemp Roundtable. “If they really thought there was a health emergency, there would be no year-round period.”
Federal ban would put more than 300,000 jobs at risk while burdening states $1.5 billion worth of tax money lostThe group says.
Bauhaus Brew Labs president and chief operating officer Drew Hurst has no doubt that his company will be one of the casualties.
Hurst said, “If it goes on as it is currently written, I see absolutely no way that Bauhaus can remain in business.”
what comes next?
Several lawmakers say they will push for regulation of the hemp THC industry. Kentucky’s other senator, Republican Rand Paul, introduced an amendment to remove McConnell’s hemp language from the key government-funding bill, but it failed by a lopsided 76-24 vote.
Minnesota’s Democratic U.S. senators, Amy Klobuchar and Tina Smith, are among those laying out strategies to save the industry. Klobuchar said at a recent press conference that the ban was included in an unrelated shutdown bill without a hearing. He suggested that the federal government could allow states to develop their own regulatory frameworks, or Minnesota’s strict rules could be used as a national model.
Kevin Hilliard, co-founder of Insight Brewing in Minneapolis, said the hemp industry needs a solution before planting next spring.
“If a farmer has uncertainty, they won’t plant,” Hilliard said.
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Johnson reported from Seattle. AP congressional reporter Kevin Freking contributed from Washington, D.C.
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