CBD/Hemp

What a government shutdown means for hemp retailers

The current House version of the Appropriations Bill would effectively ban intoxicating hemp products
U.S. Capitol
A potential government shutdown could be bad news for hemp-THC retailers. | Photo: Shutterstock

With the Tuesday deadline to pass a budget looming, the likelihood of a government shutdown is growing. The House recently passed a Continuing Resolution (CR) to fund the government through November 21, but the Senate rejected it and failed to pass its own version.

Complicating matters further, the House is now in recess until October, publicly stating there will be no voting on Monday and Tuesday—after the funding deadline. Without new action, the only path to avoiding a shutdown would be for the Senate to approve the House’s CR, a scenario most observers on Capitol Hill consider unlikely.

While a shutdown would ripple across many sectors, it could prove especially consequential for the hemp industry.

Hemp in the crosshairs

To keep the government open, both chambers must come to an agreement – whether it is the House CR, a CR with a minibus attached or another solution. 

At the center of the debate is the Harris Amendment, which would redefine hemp in a way that effectively bans most hemp-derived cannabinoid products—particularly intoxicating ones. The Senate version stripped this language, but it remains in the House version. If adopted, the amendment could wipe out the majority of hemp products currently sold in convenience stores and other responsible retail channels.

Pushback from industry and lawmakers

Not all lawmakers agree with prohibition. At a recent hemp industry summit hosted by the Wine & Spirits Wholesalers of America (WSWA)—alongside the National Industrial Hemp Council of America (NIHC), the Coalition of Adult Beverage Alternatives, the U.S. Hemp Roundtable and the Midwest Hemp Council—several officials voiced support for responsible regulation.

“Prohibition will only serve to open the market to bad actors while costing American jobs, and penalizing industry participants who have already made investments and supported the safe, responsible regulation of intoxicating hemp products at both the federal and state levels,” said Dawson Hobbs, WSWA’s executive vice president of Government Affairs.

Rep. James Comer (R-KY), chairman of the House Committee on Oversight and Government Reform, and Rep. Derrick Van Orden (R-WI) joined Sen. Rand Paul (R-KY) in backing regulated hemp sales. Comer also spearheaded a bipartisan letter—signed by more than 20 representatives—urging House leadership to reject an outright ban.

What retailers can do

Convenience retailers have a stake in this fight. If intoxicating hemp products are banned, not only will they lose sales, but a black market could quickly emerge as competition.

Retailers can take action by:

  • Reaching out to their congressional representatives, especially where relationships already exist, to urge opposition to the ban.
  • Encouraging their trade associations to adopt and voice a clear stance on the issue.

As the shutdown battle plays out, the future of intoxicating hemp products—and whether responsible retailers can continue to sell them—hangs in the balance.

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