The federal government’s reopening could close the door on the U.S. hemp boom — an $8 billion industry with deep roots and a massive retail real estate presence across Texas.
Language tucked into the continuing appropriations and extensions act — Congress’ vehicle to end the record-long government shutdown — would effectively ban nearly all hemp products containing tetrahydrocannabinol, or THC, nationwide, Bisnow reported.
The measure wouldn’t take effect for a year, but experts say that’s little comfort for an industry already on notice. A ban could force the closure of thousands of businesses across the state, potentially leaving up to 17 million square feet of retail space vacant and delivering a shockwave through the commercial real estate sector.
“It would have to be the passion project of a politician willing to die on that hill,” said California cannabis attorney Brandon Dorsky, who’s practiced in the field since 2009. “And there’s only one of those — Rand Paul.”
The Kentucky senator introduced an amendment this week to strike the ban, warning it would “regulate the hemp industry to death” and erase years of consumer and farmer gains.
The amendment failed 76–24, with Paul and Texas Sen. Ted Cruz the lone Republicans voting yes. Cruz argued on X that regulation of hemp and marijuana products should remain a state issue, not a federal mandate.
Texas’ hemp sector exploded after the 2018 Farm Bill legalized hemp products with 0.3 percent or less THC. Today, the industry supports over 50,000 jobs and about 8,500 businesses statewide. Licensed brands range from mom-and-pop CBD shops to grocery giant H-E-B.
The bill would slash allowable THC content to just 0.4 milligrams per package — a threshold Paul said would wipe out 100 percent of hemp-derived products currently on the market. The senator blamed “bad actors” for abusing the 2018 law by boosting THC levels, but said the proposed fix goes too far.
The move follows failed state-level efforts to ban intoxicating hemp products earlier this year, when Texas Lt. Gov. Dan Patrick pushed legislation that Gov. Greg Abbott ultimately vetoed. The industry called that decision a lifeline.
Now, hemp advocates nationwide — including the Texas Hemp Business Council — are mobilizing to fight what they call a reckless reversal. “Hemp is too vital to the American economy to be dismantled by rushed, politically driven legislation,” the group said, vowing to pursue “every legal and legislative option” to keep the industry alive.
— Eric Weilbacher
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