Federal hemp ban will hit Texas economy, industry leaders warn
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A last-minute provision tacked on to the bill to reopen the federal government will cripple the booming Texas hemp market, industry leaders say.
Why it matters: The state's hemp industry generates nearly $5.5 billion in annual sales, translating to $268 million in tax revenue, per an analysis by Whitney Economics commissioned by the Texas Hemp Business Council.
Driving the news: The bill, which President Trump signed into law Wednesday, recriminalizes many hemp-derived products containing small amounts of THC, reversing legalization in the federal 2018 Farm Bill.
Threat level: The Texas hemp industry employs more than 53,000 people, according to the analysis.
- With the ban, the economic consequences will be "severe and immediate," the Texas Hemp Business Council warns.
What they're saying: "The industry is once again caught in the crossfire of a political showdown, with hemp serving as collateral damage," the council said in a statement to Axios.
- "Congress had years to address the FDA's regulatory failures, yet instead of crafting a science-based solution, a last-minute political deal put the entire sector at risk."
Flashback: The 2018 federal farm bill paved the way for states, including Texas the next year, to legalize low-level THC hemp-derived products, including edibles and gummies, while allowing hemp farmers to expand their cultivations and small businesses to flourish.
- A push to ban those products fell short in the Texas Legislature this year.
How it happened: As Congress debated the bill to reopen the federal government Monday, U.S. Sen. Susan Collins (R-Maine) proposed an amendment to the bill that would ban hemp.
- The only two Republicans to push back were Sens. Rand Paul (R-Kentucky) and Ted Cruz (R-Texas), who voted in favor of stripping the hemp-banning language from the bill. That vote failed.
- "I have long believed that the regulation of hemp and marijuana products should rest with each individual state," Cruz posted online after the vote. "A one-size-fits-all federal standard will undoubtedly create unintended consequences that harm consumers."
Friction point: Hemp industry leaders have been calling for tighter regulations on THC products, including age restrictions and heightened product testing, rather than a ban. Texas Gov. Greg Abbott ordered the Department of State Health Services to create formal rules such as limiting sales to those 21 and up.
- Some lawmakers, including Texas Lt. Gov. Dan Patrick, have said the industry is poisoning children by marketing products to younger consumers.
What's next: The ban is slated to take effect in November 2026.
- The Texas Hemp Business Council says it will pursue "every legal and legislative option" to overturn the ban.