New law killing "THC loophole" could hurt state programs and businesses, advocates say
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New law killing "THC loophole" could hurt state programs and businesses, advocates say
"Driving the news: The provision reversed the legal sale of hemp products outlined by the 2018 Farm Bill, which included many THC-infused products. Sen. Rand Paul (R-Ky.) waged a last-minute fight against it, threatening to hold up the bill until he got a vote on an amendment to strip the THC language, but Republicans were largely united on ending the shutdown."
"39 state attorneys general signed a letter on Wednesday asking Congress to outlaw intoxicating hemp products at the federal level. Public health officials have argued that the products' lack of oversight and regulation pose risks to minors. Here's what to know about the money from the legal hemp industry: What to know about the ban Catch up quick: The Farm Bill loophole allowed intoxicating THC to be sold in low doses, Carol Moss, a cannabis attorney for Hellmuth & Johnson, told Axios this week."
"The shutdown deal banned those THC products and also non-intoxicating CBD products, Moss said. The newprovision "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," per a Senate Appropriations Committee summary. Legal hemp products vary by state, but typically include food and beverage products. What we're watching: There is a one-year implementation delay for the hemp ban, which allows the USDA, the FDA, and states to update their rules before enforcement begins in late 2026."
Several states use hemp tax revenue to fund addiction services, county budgets and public health programs. The shutdown provision reverses the 2018 Farm Bill allowance that enabled many THC-infused hemp products to be sold. Senators clashed over the change, with a last-minute challenge from Sen. Rand Paul and support for closing the loophole from Sen. Mitch McConnell. Thirty-nine state attorneys general urged a federal ban and public health officials warned of oversight gaps that risk minors. The deal reportedly banned certain THC and non-intoxicating CBD products, while a committee summary says intoxicating hemp products will be restricted and non-intoxicating CBD preserved. A one-year implementation delay gives USDA, FDA and states time to update rules before enforcement begins in late 2026.
Read at Axios
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