THC Gummies and Drinks Could Be Banned Under New Federal Spending Bill Provision

A quietly inserted provision in the federal spending bill signed by President Trump is sending shockwaves through the hemp industry. The measure, largely overlooked during negotiations, would effectively ban a wide range of popular THC-infused products, from gummies and sodas to topical pain relievers and vape cartridges — items now sold nationwide in gas stations, wellness shops, and online retailers.

The hemp market emerged after the 2018 Farm Bill legalized the crop and allowed for low-dose, hemp-derived THC products to be manufactured and sold. The lack of strict federal oversight became a loophole that allowed these products to enter mainstream commerce rapidly, driving an explosion in consumer demand and spawning thousands of small businesses.

The newly passed spending bill closes that loophole abruptly by banning any product containing more than 0.4 milligrams of THC per container — an amount so low that industry leaders say it would eliminate nearly all existing products.

Hemp Industry Warns of “Devastating” Consequences

The U.S. Hemp Roundtable, a leading national advocacy organization, says the new rule is catastrophic. According to the group:

• It threatens to dismantle America’s $28.4 billion hemp industry

• It could destroy more than 300,000 jobs

• About 95% of today’s hemp-derived products would instantly become illegal

• States stand to lose roughly $1.5 billion in tax revenue

The organization argues that the provision would bankrupt farmers, processors, manufacturers, and retailers across the country — many of whom invested heavily in hemp after federal legalization.

Industry members say the ban was buried in the bill with little public debate.“They sneak that in and crush the industry. My business is completely over,” said Stacy, a hemp farmer in Woodstock, Illinois, who called into C-SPAN’s Washington Journal to explain how the new rule threatens her topical salve products. “I have one year to wind this business down, and nobody is talking about the hundreds of thousands of people — farmers, processors, retail stores. This is going to have incredible ripple effects across the economy.”

Sen. Rand Paul Tried to Remove the Ban — and Lost

Sen. Rand Paul proposed an amendment to strike the THC language from the Senate bill, but lawmakers voted overwhelmingly to block his effort.

Paul warned that the decision “couldn’t come at a worse time for America’s farmers.”On the Senate floor, he said the measure would effectively “eradicate the hemp industry” just as growers and small businesses were recovering from significant economic challenges.

Despite his objections, the ban moved forward intact.

Supporters Say the Loophole Needed to Be Closed

Backers of the new restriction — including Sen. Mitch McConnell, who helped legalize hemp in 2018 — argue that the market has spiraled far beyond the intent of the original legislation.

McConnell said certain companies have “exploited” legal hemp by converting it into intoxicating forms of THC and selling it with minimal regulation. His concerns are echoed by dozens of state attorneys general, who issued a letter warning that the 2018 Farm Bill had been:

• “Wrongly exploited by bad actors”

• Used to sell synthetic recreational THC products nationwide

• Responsible for the “rapid growth of an underregulated industry”

• Harmful to public health and law enforcement

These officials argue that the popularization of delta-8 and other hemp-derived psychoactive products has created safety risks and regulatory confusion.

Seniors, Veterans, and Chronic Pain Patients Could Lose Access

According to the U.S. Hemp Roundtable, more than 90% of non-intoxicating hemp-derived wellness products currently exceed the new 0.4 mg THC limit. Many of these items are used for:

• Chronic pain

• Insomnia

• Anxiety

• Muscle recovery

• Arthritis and inflammation

If the ban stands, millions of Americans — including seniors and veterans — would suddenly be unable to legally access products they rely on for relief.The group warns this could push people toward “potentially harmful alternatives” or force them into illicit markets.

What Happens Next?

The hemp industry now faces a one-year transition period as the new limit takes effect. Farmers, processors, and retailers are bracing for closures, layoffs, and large-scale business losses unless Congress revisits the policy.

Justice Watchdog will continue monitoring the fallout across agriculture, small business, consumer markets, and public health policy.For more updates on federal legislation and industry-wide impacts, explore our Legal News and Trending sections.

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