New law killing "THC loophole" could hurt state programs and businesses, advocates say

Source: msn/Axios

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Congress rallied to pass a spending bill that ended the record-long government shutdown, but it came with a price: much of the legal cannabis industry.

The big picture: A last-minute provision in the spending bill criminalized many hemp-derived products, despite the objection of businesses, lobbying groups, and lawmakers with stakes in the $28 billion industry.

Several states use hemp taxes to fund addiction services, county budgets and public health programs, industry experts told CNBC this week.

Driving the news: The provision reversed the legal sale of hemp products outlined by the 2018 Farm Bill, which included many THC-infused products.

Sen. Rand Paul (R-Ky.) waged a last-minute fight against it, threatening to hold up the bill until he got a vote on an amendment to strip the THC language, but Republicans were largely united on ending the shutdown.

The other side: Sen. Mitch McConnell (R-Ky.) authored the 2018 Farm Bill but has been a leading proponent of closing the THC loophole, arguing that companies have exploited it to create intoxicating substances.

39 state attorneys general signed a letter on Wednesday asking Congress to outlaw intoxicating hemp products at the federal level.

Read more: https://www.msn.com/en-us/news/us/new-law-killing-thc-loophole-could-hurt-state-programs-and-businesses-advocates-say/ar-AA1QvzcR