A federal crackdown that could dismantle much of the nation’s hemp and cannabis industry just got a small lifeline — at least for now.
Congress has approved a one-month delay of new restrictions on hemp-derived THC products, pushing their effective date from Nov. 12 to Dec. 11. The move gives businesses more time to lobby for changes to a law that could make many CBD and THC products illegal.
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In North Carolina — where farmers grow hemp, labs synthesize it into CBD or THC-based gummies, drinks and other products, and stores sell them to thousands of customers — industry insiders estimate it’s worth at least $1 billion a year to the state economy.
When Congress initially voted last year to ban many hemp products with little debate prior to the vote, it shocked businesses and users alike. Now, some are celebrating the temporary delay that will give them at least another month.
"We would take anything at this point," said Adrian Larrea, founder and CEO of Raleigh-based Haze Bev Co., which sells hemp and THC beverages. "It's my livelihood."
The U.S. House voted 370-48 Tuesday for the Senate-passed government funding bill containing the delay. It’ll become law pending a signature from President Donald Trump, whose administration publicly said he supports the bill.
The White House told WRAL Wednesday that Trump’s position on hemp hasn’t changed and pointed to his previous support for legal hemp production and a December executive order calling for a new federal approach to hemp-derived products.
“The only interest guiding the Trump administration’s decision-making is the best interest of the American people,” White House spokesman Kush Desai said, adding that the administration continues to explore a framework that could expand hemp-based treatment options for veterans and other patients.
The stakes are significant for North Carolina's growing hemp industry.
Many THC drinks sold legally in the state contain 5 or 10 milligrams of THC, which is within the state's legal limit of .3% THC‑by‑dry‑weight limit. The new federal law would generally limit finished hemp products to 0.4 milligrams of total THC per container.
Larrea said his company is continuing to operate while paying closer attention to how much product it makes. Haze products are sold in about 250 locations across three states, he said, and the company hopes to add more than 300 locations over the next year.Haze has five employees, but Larrea said roughly 100 people work with the company through distributors, manufacturers and sales teams — jobs he worries could be affected if the new federal restrictions take effect.
“We can't just stop everything right now, but it is having us look twice at what size our production runs are and what we're doing, because nobody wants to get caught with a lot of product that can't be sold or is made illegal,” Larrea said in an interview Wednesday.
The fight traces back to the 2018 Farm Bill, which legalized hemp and distinguished it from marijuana based largely on its concentration of delta-9 THC.
That opened the door to an industry selling hemp-derived THC gummies, drinks and other intoxicating products, including in states such as North Carolina where marijuana remains illegal. North Carolina lawmakers voted to legalize hemp the next year, in 2019.
Critics say the votes, in Congress and the state legislature, unintentionally created a loophole that allowed intoxicating products to be sold without sufficient oversight. The industry argues Congress should regulate the market through age restrictions, testing and labeling requirements rather than effectively prohibit many existing products.
North Carolina's two Republican U.S. senators opposed delaying the federal restrictions.
“There is no valid reason to allow the continued sale of these dangerous hemp-derived products commercially,” Sen. Ted Budd told WRAL in a written statement, adding that he would fight any further extension.
Budd led an unsuccessful effort in August to remove the extension from the government funding bill, and Sen. Thom Tillis cosponsored his amendment.
Budd has argued intoxicating hemp products exploit the 2018 law and that some are packaged and marketed in ways that appeal to children.
“Let me be clear: I will not back down. I will not waver. I will not stop until this life-threatening hemp loophole is closed permanently,” Budd wrote on social media. “We must strip this amendment from the [funding bill] & regulate these harmful substances for what they are—not what the industry wants to call them.”
The Senate voted 61-32 to block Budd's amendment.
North Carolina's own hemp fight
North Carolina lawmakers have been debating many of the same questions.
The state currently has no minimum age to buy hemp-derived THC products, something lawmakers in both parties and the industry broadly agree should change.
But that consensus broke down this summer over how much further lawmakers should go.
Legislation passed by the Senate included age restrictions but also limits that hemp businesses warned would wipe out much of the existing market. House Speaker Destin Hall, R-Caldwell, ultimately delayed a vote, as hundreds of protesters flooded the legislature, and said he planned to appoint House lawmakers to continue studying the issue.
“Folks recognize that the current state of our law is not tenable,” Hall told reporters in July. “There are basically no rules. Things being sold that shouldn't be. Things being sold to kids that shouldn't be sold. The question is what to do about it.”
After the federal delay, a spokesperson for Hall said House members will continue discussing “common-sense issues like age restrictions and potentially harmful synthetic products” while monitoring what happens in Washington.
State lawmakers are expected back in Raleigh in November.
Democratic Gov. Josh Stein also supports age restrictions but has opposed a near-total prohibition on intoxicating hemp products. He has also questioned why lawmakers haven't done more to regulate kratom, another substance commonly sold at gas stations and smoke shops.
“Kratom is this drug that people can buy in gas stations, and it's an opioid-like drug,” Stein told reporters in early August. “It does similar things to a person. If you take a lot of it, it will act as an opioid. So it is commonly called, on the street, gas station heroin.”
Rep. Tricia Cotham, R-Mecklenburg, told WRAL in early August that she also has concerns about restricting hemp while leaving kratom widely available.
Cotham said lawmakers should consider the potential effect on farmers, manufacturers, retailers and consumers before moving forward.
“This hits the people that I came here to represent. And plus, there are too many unknowns with this bill,” Cotham said. “There's debate over ounces and packaging, and the federal government just recently said, 'Let's put a pause on this.' Why should North Carolina take the lead, especially if we get it wrong?”
