THC Drinks Face Federal Ban Under Government Shutdown Bill

Impact of Federal Bill on Hemp-Derived THC

• 🎯 A provision within the federal bill to end the government shutdown could make hemp-derived THC products federally illegal, threatening a rapidly growing beverage trend.
• 💡 The Farm Bill of 2018 legalized hemp-derived products, enabling the creation of beverages like THC seltzers.

Concerns and Industry Impact

• ⚠️ A letter signed by 38 attorneys general, including Minnesota's Keith Ellison, urged Congress to close a perceived loophole, citing concerns about "Frankenstein THC products" that get adults high and potentially harm children.
• 🍺 Craft brewers, like Insight Brewing Company, state that hemp-based THC revenue accounts for a significant portion of their income and was critical for survival post-pandemic.
• 📉 Industry experts warn that the proposed law change, limiting THC to 0.4 milligrams per serving (down from 5 or 10 mg), would decimate the industry.
• 🚫 Breweries would face challenges with interstate sales, production, distribution, and securing bank loans for a federally illegal product, potentially leading to business closures.

Legislative Action and Outlook

• 🚀 Senator Rand Paul attempted to remove the provision, but the measure passed the Senate with a vote of 76-24.
• ⏳ If the House passes the bill with the current language, the change would take effect in one year.
• ⚖️ While some hope for state-level pivots, the federal law poses a significant threat to businesses built around hemp-based drinks.