Hemp's Inclusion in the Government Shutdown Deal: Real Reasons and Future Prospects

Hemp's inclusion in the government funding bill was not about the shutdown itself but rather represented a strategic opportunity by prohibition advocates to address what they characterized as an unintended "loophole" in the 2018 Farm Bill. The provision was added at the last minute to the spending legislation, which went into effect on November 12, 2025.

Hemp's inclusion in the government funding bill was not about the shutdown itself but rather represented a strategic opportunity by prohibition advocates to address what they characterized as an unintended "loophole" in the 2018 Farm Bill. The provision was added at the last minute to the spending legislation, which went into effect on November 12, 2025.

Real Reasons Hemp Was Included

The 2018 Farm Bill Loophole

The 2018 Farm Bill, championed by Senators Mitch McConnell and Rand Paul (both Kentucky Republicans), legalized hemp containing no more than 0.3 percent delta-9-THC by dry weight. However, the legislation did not explicitly address synthesized cannabinoids derived from hemp, such as delta-8-THC and delta-10-THC. This gap created what proponents called a "loophole," allowing manufacturers to legally convert hemp-derived CBD into intoxicating THC products that functioned similarly to cannabis but fell outside traditional cannabis regulations.​

Political Pressure from State Attorneys General

In October 2025, a bipartisan coalition of 39 state and territory attorneys general sent a letter to Congress urging federal action. These officials argued that the unregulated hemp industry posed public health risks, particularly regarding youth access to intoxicating products, and that bad actors were exploiting regulatory gray areas to sell products resembling branded consumer goods (edibles, beverages, vapes) with intoxicating effects. This letter significantly influenced the congressional response and provided political cover for the hemp restriction language.​

Industry Pressure and Economic Considerations

The alcohol industry, which initially saw hemp beverages as a growth opportunity, shifted its position to support the ban, viewing hemp-derived products as unfair competition to regulated alcohol. State-regulated cannabis operators also supported the provision, recognizing that a federal hemp ban would eliminate competition from unregulated intoxicating hemp products and channel intoxicating cannabinoid sales into state-legal cannabis markets. This coalition of interests—state officials, alcohol producers, and legal cannabis operators—created substantial political momentum for restricting hemp.​

Individual Senators' Agendas

Senators Mitch McConnell (R-KY) and Andy Harris (R-MD) were the most vocal proponents, with McConnell particularly determined to insert the language into the spending bill. McConnell framed it as correcting his own 2018 legislation by preventing "dangerous products" from reaching children while preserving industrial hemp for farmers. The provision was pushed by McConnell specifically, added to the spending package to ensure its passage as part of the government funding deal.​

The 300,000 Jobs Question and 2026 Prospects

Job Impact Estimates

Industry leaders estimate that the hemp provision would affect nearly 300,000 jobs and eliminate 95 percent of the $28 billion hemp retail market. The U.S. Hemp Roundtable warns that the threshold will wipe out approximately $17.4 billion in market value, with broad economic consequences extending from farmers to retailers to consumers.​

Will Congress Reverse Course Before 2026?

The likelihood of reversal appears mixed but faces significant obstacles:

Factors Supporting Potential Reversal:

A critical 365-day implementation window provides industry advocates and sympathetic lawmakers with time to push for legislative alternatives. Several factors suggest possible change remains possible: Kentucky Representative Brett Guthrie, who chairs the House Energy and Commerce Committee, did not sign a letter opposing the hemp provision, positioning him as potentially crucial to reform efforts. Senator Rand Paul and Representatives Thomas Massie (R-KY) and Morgan McGarvey (D-KY) have been vocal opponents of the ban. Senator Jeff Merkley (D-OR) spoke in support of Paul's amendment to strike the language. Representative Morgan Griffith (R-VA) plans to introduce legislation replacing the total ban with "robust" regulation of hemp products.​

Factors Opposing Reversal:

However, significant hurdles remain. President Trump explicitly stated his support for the hemp ban, removing any possibility of presidential veto for corrective legislation. The Senate rejected Rand Paul's amendment to strip the hemp language by a vote of 76-24, indicating that strong support exists for the restriction. The House did not take a separate vote on the hemp provision, suggesting it was considered non-controversial enough to pass as part of the broader spending package.​

Political Reality for 2026

The hemp industry faces a politically challenging landscape for achieving a reversal before the 2026 midterms. While the industry maintains hope for legislative reform within the 365-day window, several factors suggest change is unlikely:

• McConnell's sustained push for hemp restrictions over multiple years indicates deep ideological commitment to prohibition over regulation

• The coalition of attorneys general, alcohol interests, and legal cannabis operators provides competing political pressure

• Trump's explicit support for the ban eliminates a potential point of leverage

• The 76-24 Senate vote suggests majority support for the restriction

Rather than achieving a complete reversal by 2026, the more realistic outcome appears to be advocacy for regulatory alternatives during the implementation window. Industry groups are emphasizing "365 days to regulate, not ban" as their strategic messaging.​

Credible Sources

• Akerman, "Congress Enacts Sweeping Recriminalization of Hemp-Derived THC Products in Federal Spending Bill Ending Government Shutdown," November 13, 2025​

• Cato Institute, "Congress Reopens the Government—and Reignites Prohibition," November 10, 2025​

• PMC/NCBI, "The Hemp Loophole: A Need to Clarify the Legality of Delta-8-THC," March 9, 2021​

• National Association of Attorneys General, "39 State and Territory Attorneys General Call for Clarification of Federal Definition of Hemp," October 24, 2025

• ​Connecticut Mirror, "Congress pushes hemp crackdown after pressure from states, marijuana industry," November 12, 2025​Stateline/Connecticut Mirror, November 12, 2025

• ​Clark Hill Cannabis Industry Group, "Hemp Industry Alert: Federal Ban on Hemp-Derived THC Products," November 13, 2025

• ​Louisville Public Media, "McConnell, Paul clash over Senate provision," November 10, 2025​

• Clark Hill Cannabis Industry Group, "Hemp Industry Alert," November 13, 2025​

• Fox 13 Now, "Utah hemp businesses face major impact from bill," November 14, 2025​

• ABC News, "THC gummies and drinks face ban," November 13, 2025​Hush Blackwell, "The End of the Government Shutdown Starts a 365-day Countdown," November 12, 2025

• ​Clark Hill Cannabis Industry Group, "Hemp Industry Alert," November 13, 2025

• ​Louisville Public Media, "McConnell, Paul clash," November 10, 2025​

• Marijuana Moment, "Senate Rejects Attempt To Save Hemp Industry," November 10, 2025​

• Food Processing, "Hemp Industry Has '365 days to Regulate not Ban,'" November 13, 2025​

• Marijuana Moment, "Senate Rejects Attempt," November 10, 2025​

• Louisville Public Media, "McConnell, Paul clash," November 10, 2025​

• Texas Tribune, "Congress bans most hemp-based THC products in shutdown deal," November 12, 2025​

• Food Processing, "Hemp Industry Has '365 days to Regulate not Ban,'" November 13, 2025