Texas hemp industry faces new threat from federal spending deal

The U.S. Senate on Monday night approved language that would effectively outlaw nearly all THC-containing hemp products nationwide.
The U.S. Senate on Monday night approved language that would effectively outlaw nearly all THC-containing hemp products nationwide. Photo credit iStock / Getty Images Plus

The Texas hemp industry, which narrowly survived a state-level ban earlier this year, could soon be wiped out by a new federal measure included in Congress’ deal to end the government shutdown.

The U.S. Senate on Monday night approved language that would effectively outlaw nearly all THC-containing hemp products nationwide. The provision, folded into a spending package that President Donald Trump could sign as early as Wednesday, would redefine hemp to limit THC content to no more than 0.4 milligrams per container — a change industry advocates say would devastate businesses.

The move is a blow to Texas hemp producers and retailers, who generate about $8 billion annually and employ tens of thousands across more than 8,000 licensed outlets, from gas stations and vape shops to bars and grocery chains.

Supporters of the ban say it closes a loophole in the 2018 law that legalized hemp and unintentionally fueled a booming market for THC-like products. Alcohol and marijuana industry groups, whose sales have suffered amid hemp’s rise, have pushed Republicans in Congress to tighten restrictions.

The Senate vote split Texas’ two senators. Republican John Cornyn supported the ban, while fellow Republican Ted Cruz joined 22 Democrats in opposing it. Cruz later said he favored a state-by-state approach and praised Gov. Greg Abbott for vetoing a similar Texas measure earlier this year, citing legal and business concerns.

If enacted, the federal change could accomplish what Lt. Gov. Dan Patrick’s failed legislative push could not — shutting down most of Texas’ hemp industry virtually overnight.

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Featured Image Photo Credit: iStock / Getty Images Plus