Over the weekend, Congressional leadership removed language from the spending bill released Tuesday morning that would have delayed a looming ban on hemp THC, MJBizDaily has learned.
In addition to creating further uncertainty for hemp farmers and operators on the eve of planting season, the setback for hemp in Washington promises to delay when insurance will cover CBD treatments, as President Donald Trump promised last month, industry lobbyists said.
The $28 billion U.S. hemp industry has been on high alert since November, when the deal to end the government shutdown also redefined hemp under federal law to recriminalize most popular hemp-derived THC products.
With a temporary spending package set to expire at the end of January, lawmakers are working on another funding bill. Hemp interests are pushing to include a one- or two-year delay in the bill to avoid the looming ban.
Push to save hemp THC in temporary spending bill unravels
Language that would have done so – similar to a standalone bill introduced in the House by Indiana Republican Rep. Jim Baird and Minnesota Democratic Rep. Angie Craig – was included in a draft version of a bipartisan funding bill, several sources told MJBizDaily.
But with the Republican Party’s slim majority in the House, individual members have significant leverage.
And enough members of the House Freedom Caucus – led by U.S. Rep. Andy Harris, the Maryland Republican who authored the ban language – moved to get the hemp THC ban reprieve language removed, Washington lobbyists told MJBizDaily.
Lobbyists are hopeful that the hemp THC ban can still be avoided – and with it, chaos and uncertainty for hemp farmers and operators who are reliant on the enormous market for hemp-derived THC products.
“As the days go on, we’re picking up more and more support in Congress and among other major policy players,” said Jonathan Miller, general counsel of the U.S. Hemp Roundtable, a major Washington lobby.
“I’m cautiously optimistic we’re going to get an extension,” he added. “We might not get it at the end of this month, but I feel like we have a lot of momentum to get one over the next several weeks before it’s crunch time for our farmers with their planting decisions.”
In addition to Harris, hemp THC has powerful enemies, including retiring Kentucky U.S. Sen. Mitch McConnell.
But it’s not just hemp farmers who need Congress to act.
Trump promised healthcare coverage for CBD
Much of the cannabis industry’s focus over the past month been on marijuana rescheduling, which Trump directed the Justice Department to finalize with his Dec. 18 executive order.
However, that same day, Trump administration officials promised seniors that they’d be able to seek reimbursements through their health insurance providers – including Medicare – for non-intoxicating CBD-based treatments.
Reimbursements for up to $500 for CBD products that “meet local and state quality and safety standards” could come as soon as April, said Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services (CMMS).
A pet project of Howard Kessler, a Florida billionaire and Mar-a-Lago Club member who personally lobbied Trump on the issue, insurance coverage for cannabis treatments could significantly boost cannabis operators’ bottom lines.
So far, CMMS has not released further details on the program.
When will Congress move to cover CBD, save hemp-derived THC?
That’s partially because doing so would require “Congress to reconsider its classification of hemp-derived CBD to ensure seniors can access CBD products they have found beneficial for pain,” Trump said during an Oval Office signing ceremony.
A spokesperson for CMMS did not respond to a request for comment from MJBizDaily seeking more details on the CBD reimbursement program.
It’s unclear whether a delay on the hemp THC ban, which critics like Miller say would also criminalize most CBD products, would be by itself enough to have Medicare cover the treatments.
Other Washington observers said that federal agencies, including the U.S. Department of Agriculture, which has been tasked with overseeing legal hemp since the 2018 Farm Bill, were also hesitant to move forward without clear direction from Congress.
Chris Roberts can be reached at chris.roberts@mjbizdaily.com.
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