Hemp industry in panic as Senate funding bill moves to re-criminalize intoxicating hemp-derived products

The funding package passed late Monday by the US Senate to end the federal government shutdown contains a provision that would have a profound impact on the sale of intoxicating hemp-based products.

Hemp ban in US

Hemp was legalized in 2018 under the Farm Bill, but the new funding measure re-criminalizes certain intoxicating hemp-derived substances. According to The Hill, the provision “prevents the unregulated sale of intoxicating hemp-based or hemp-derived products, including Delta-8, from being sold online, in gas stations, and corner stores, while preserving non-intoxicating CBD and industrial hemp products,” as stated in the official summary given by the Senate Appropriations Committee.

When the measure criminalizing hemp came to light, it was strongly opposed by Senator Rand Paul. He moved an amendment to remove it from the bill, but only two Senators voted in favor of it – Paul and Ted Cruz – and the amendment failed.

“The bill, as it now stands, overrides the regulatory frameworks of several states, cancels the collective decisions of hemp consumers and destroys the livelihoods of hemp farmers,” Senator Paul said, as per The Hill, on the floor of the Senate. “And it couldn’t come at a worse time for America’s farmers. Times are tough for our farmers,” he added.

The Hill also reported that the hemp industry was caught unaware by this sudden legislation and is concerned about its fallout.

Hemp industry in US

According to The New York Post, the US hemp industry is worth $28 billion. This provision could lead to lost tax revenue of up to $1.5 billion. It is also feared that 80% of the revenue for the producers and manufacturers of these products will be wiped out.

The number of jobs lost is hard to specify, but is likely to be in the hundreds of thousands, the New York Post article claims. The states that will bear the brunt of this measure are Kentucky, Tennessee, North Carolina, Colorado and Oregon, according to the publication.

The bill to resume funding, having been passed in the Senate, will now move to the House of Representatives.

FAQs

Is hemp legal in the United States?

Currently, the law in the United States allows for the sale of hemp-based products.

Will the latest bill criminalize the sale of hemp?

Yes, it will re-criminalize it after the 2018 Farm Bill made it legal.

Who opposed the criminalization of hemp in the Senate?

Senators Rand Paul and Ted Cruz, both of the Republican Party.