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Policy & Law

Intoxicating Hemp Industry Seeks Rescue in Congress as Ban Looms

Sen. Mitch McConnell's provision closing the 'hemp loophole' takes effect in November, prompting bipartisan legislative efforts to create a regulatory framework.

Ted Cruz — Ted Cruz, official portrait, 113th Congress (croppedv4)
Photo: Frank Fey (U.S. Senate Photographic Studio) (Public domain) via Wikimedia Commons
⚡ The Bottom Line

The November deadline presents a ticking clock for an industry that has grown rapidly by exploiting regulatory ambiguity. McConnell has made keeping the ban a legacy issue, and his influence in the Senate means any change would require significant political capital. With Barr expected to introduce standalone legislation in coming weeks, advocates see this as their best chance at creating a regu...

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The intoxicating hemp industry and its allies are racing against the clock to convince Congress to delay or stop a ban on hemp-derived intoxicants that is set to take effect in November. The provision, championed by Sen. Mitch McConnell (R-Ky.) and included in last fall's government funding bill, would close the so-called 'hemp loophole' that has allowed companies to sell gummies, beverages and vapes containing high levels of THC—the psychoactive compound in marijuana—without being classified as marijuana.

McConnell led the charge to legalize hemp in the 2018 farm bill with the intent that it be used for agriculture and textiles. However, the law's broad definition and subsequent lack of federal regulation created a pathway for companies to extract and synthesize intoxicating levels of THC, flooding gas stations, smoke shops and convenience stores with products that can produce marijuana-like effects.

What the Right Is Saying

Conservative lawmakers and industry supporters argue for a 'level playing field' with alcoholic beverages. Rep. Andy Barr (R-Ky.), who won Kentucky's GOP Senate primary and is favored to win McConnell's seat, has introduced legislation that would create a regulatory pathway keeping intoxicating products on the market.

"No one industry should have a unique, special competitive advantage based on the law," Barr said during a Hemp Industry & Farmers of America meeting. He noted he wanted to create parity between hemp-derived THC products and alcohol. Barr is co-chairman of the Congressional Bourbon Caucus and argued that advocates can support both hemp products and Kentucky bourbon.

Sen. Ted Cruz (R-Texas), who was the only Republican besides Rand Paul to vote for an amendment stripping the hemp language last fall, expressed skepticism about prospects for change before McConnell retires at year's end. "Given that if Mitch is actively leaning on people not to do anything, my guess is the votes don't move significantly," Cruz said during a HIFA call.

What the Left Is Saying

Public health advocates and progressive lawmakers have raised alarms about the proliferation of these products. Critics point out that many hemp-derived intoxicants resemble candy and are sold without consistent age restrictions or labeling requirements. The lack of federal oversight has particularly concerned groups focused on youth prevention, who argue that the current market poses risks to adolescents who may not distinguish these products from non-intoxicating items.

Rep. Ilhan Omar (D-Minn.) co-sponsored an amendment that would have delayed implementation of the ban's restrictions, suggesting some Democrats see merit in creating a regulatory framework rather than outright prohibition. However, public health advocates worry that any pathway to legalizing intoxicating hemp products could normalize substances that currently face fewer safeguards than marijuana sold through state-licensed dispensaries.

What the Numbers Show

The 2018 farm bill, which McConnell championed, legalized hemp nationwide by removing it from the Controlled Substances Act. The law defined hemp as any cannabis plant with less than 0.3% THC on a dry weight basis.

Multiple legislative vehicles are in play. Barr's amendment to the House Agriculture and FDA appropriations bill was rejected by the Rules Committee, along with amendments from Reps. Russell Fry (R-S.C.) and Ilhan Omar. Rep. James Comer's amendment to defund enforcement was withdrawn before the panel met.

Rep. Morgan Griffith (R-Va.), who chairs the Energy and Commerce health subcommittee, is also working on potential legislation. Industry sources note that even divisions within the hemp sector have complicated efforts—some companies oppose Barr's bill as too permissive because it could allow continued abuse of regulatory gaps.

The Bottom Line

The November deadline presents a ticking clock for an industry that has grown rapidly by exploiting regulatory ambiguity. McConnell has made keeping the ban a legacy issue, and his influence in the Senate means any change would require significant political capital.

With Barr expected to introduce standalone legislation in coming weeks, advocates see this as their best chance at creating a regulated market rather than facing outright prohibition. However, opposition from both marijuana and alcohol industries—combined with limited public polling on hemp laws—suggests the issue has not reached priority status for most voters.

Observers will watch whether bipartisan consensus can emerge around a regulatory framework that addresses concerns about youth access while preserving business opportunities in the sector.

Sources