According to reports from industry media in the United States, the Republican-backed budget bill includes a complete federal ban on THC products derived from hemp and so-called THCA hemp flower. The bill passed the first hurdle with a narrow 9-7 advantage in a partisan vote in the House subcommittee last Thursday.

It is reported that the proposal involving an expenditure of 255.23 billion US dollars, named the "2026 Fiscal Year Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Act", will use relevant legal language to "close the 'hemp loophole' created by the 2018 Agriculture Act".

This meant that the efforts made by Republican Congressman Andy Harris from Maryland to close the "loophole" resulted in a rare achievement: it successfully united advocates from the marijuana, hemp, and alcohol industries who believed that the agricultural bill was misguided legislation. Harris also chairs a key subcommittee of the bill.

As reported by industry media earlier, Harris' proposal will significantly amend the definition of "industrial hemp" used in the 2018 Farm Bill based on federal law：

• Hemp is redefined as cannabis with a total THC concentration (including THCA) that does not exceed 0.3% calculated on a dry weight basis.

• Tetrahydrocannabinolic acid, or THCA, is included in the ban, thus prohibiting the so-called THCA-infused cannabis flower.

• Remove "synthetically derived from plants or plant derivatives" from the definition of hemp cannabinoids, such as Delta-8 THC, Delta-10 THC, and THCP.

• Cannabis-derived cannabinoid products refer to products containing "quantifiable" levels of THC, THCA, or "any other cannabinoids that have similar effects to THC on humans or animals (or are marketed as having similar effects)."

Harris stated in his opening remarks at the committee that President Donald Trump's signing of the 2018 Farm Bill during his first term led to such products flooding the market nationwide and online, "and falsely claiming to have approval from the US Department of Agriculture." Harris's remarks directly targeted the US Department of Agriculture.

Harris also stated, "As many states have taken measures to prevent these dangerous products from harming consumers, especially children, Congress should now take action to close this loophole and protect the legitimate hemp (industrial hemp) industry."

The bill was passed in the Republican-controlled committee, but faced opposition from the Democrats.

The proposal has been currently submitted to the full Appropriations Committee, and must also receive approval from the committee before it can be submitted to the full House of Representatives for consideration. If it passes there, it will then be submitted to the Senate.

The rise of intoxicating THC products derived from hemp has sparked disagreements between advocates of the cannabis and hemp industries. In fact, the hemp industry is not subject to interstate trade restrictions and federal taxation constraints, while these limitations and tax policies hinder the growth of regulated cannabis businesses.

According to Newsweek, lobbyists in the cannabis and hemp industries unanimously believe that Harris's proposal is too radical and cannot solve practical problems.

The lobbying group for the alcohol industry has also issued a warning. According to media reports, the American Wine and Spirits Wholesale Distributors Association, based in Washington D.C., supports national liquor retailers selling cannabis-infused beverages, calling the bill "too broad" and "troublesome".

The alcohol wholesaler pointed out that recent state-level regulatory actions have restricted the THC content in cannabis beverages and require consumer age verification and other regulations. They told the media via email that Harris's bill "would undermine the regulatory efforts of these states and do nothing to eliminate unscrupulous merchants who irresponsibly sell potentially harmful products."

In fact, Harris' actions are more in line with the harsh proposal currently being considered by the governor of Texas. Critics have pointed out that the bill would devastate Texas' nearly $5.5 billion hemp product market. Meanwhile, leaders in the American hemp industry also state that the budget bill would destroy the nationwide $30 billion hemp market.

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