The clock is ticking for the multibillion-dollar hemp industry. The federal definition of hemp is set to change on December 11, effectively banning most THC drinks, full-spectrum CBD oil, and other goods. Several standalone hemp regulation bills have been introduced in Congress, but none has gained significant traction. Now, one Republican lawmaker is floating a different approach.
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Rep. Morgan Griffith, R-Va., said this week he hopes to attach legislation regulating hemp products to a broader budget reconciliation package being considered for after the midterm elections. Republican lawmakers are discussing a package that could include military and agricultural spending, although no legislation has been introduced.
Standalone bills are hard to pass in Congress. The federal change to hemp was tucked into sweeping budget legislation meant to end the 2025 government shutdown.
“I think we need to get my THC regulatory bill passed, and if we could get that into a reconciliation bill before the 11th of December, that’d be fabulous,” Griffith said at a press conference, according to Roll Call.
Budget reconciliation allows qualifying legislation to pass the Senate with a simple majority, bypassing the 60-vote threshold typically needed to overcome a filibuster.
However, reconciliation provisions must have a direct budgetary impact, and provisions whose budgetary effects are merely incidental to broader policy changes can be excluded.
Griffith said he believed his bill could have a shot if he coupled it with a “measure related to taxes on hemp-derived products, such as Rep. Van Duyne’s Beverage Regulatory Parity Act.”
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The Beverage Regulatory Parity Act would create a three-tier distribution system for hemp drinks, similar to the alcohol industry. It would also impose a federal excise tax, potentially providing a path to include hemp-related provisions in a reconciliation package.
Griffith’s Hemp Enforcement, Modernization, and Protection (HEMP) Act calls for the Food and Drug Administration to create potency limits for hemp products. If the agency fails to establish limits within three years, default caps of 5 mg per serving and 30 mg per package would take effect.
The reconciliation strategy faces significant hurdles. Republicans would need to agree on a budget framework and the contents of a reconciliation package, with limited time remaining before Congress adjourns.
For hemp proponents, the strategy offers another potential path to rewriting the rules before the December deadline. But as the clock ticks, it’s unclear whether Griffith’s proposed plan would save the industry in time.
