DC Shutdown-Ending Bill Bans Most U.S. Hemp Product Sales in Late 2026

posted on 11.18.2025

- $8 Billion Texas Industry at Stake

Legislation ending the federal government shutdown last week included a provision that would end the sale of most THC products derived from hemp. For broadcasters, it appears a current advertising category has a target on its back, but the federal provision does not go into effect until November of 2026.

The bill’s language limits the sale of hemp-derived products containing a total of 0.4 milligrams per “container” of total THC. The Food and Drug Administration (FDA) must develop and publish, in 90-days’ time, a list of banned products as well as define “container.” 

Members of both parties in Congress expressed concerns about the provision as it moved toward passage but voted for the budget reconciliation measure in order to end the shutdown. 

The U.S. hemp industry termed the provision an “extinction level event” and has vowed to fight for a repeal or edit of the provision in Congress.

Texas Impact

The $8 billion Texas hemp industry is estimated to employ 53,000 people in state, from farmers to employees of more than 8,000 licensed retailers. The federal action comes after Texas hemp industry advocates fought off efforts to ban hemp-derived THC products this year.

The Texas Legislature passed SB 3 in the regular session, a bill that would have banned most consumable hemp products containing THC (such as Delta-8 and Delta-9 products) in Texas. Gov. Greg Abbott, however, vetoed the bill saying it would have faced immediate and lengthy constitutional challenges in court as has similar legislation in Arkansas. He instead called for two state agencies to use their rulemaking authority to address certain concerns raised by SB 3 such as the sale of such products to minors.

Abbott issued a Sept. 10 executive order requiring two Texas state agencies to adopt temporary rules affecting the sales of THC products to customers. Under Abbott’s order, the Texas Department of State Health Services also must review current rules for potentially requiring stricter labeling and testing requirements, as well as additional recordkeeping and licensing fees. The temporary rules adopted this fall by the Texas Health and Human Services Commission and Texas Alcoholic Beverage Commission contain no restrictions on THC and CBD-related product advertising. At the time, both agencies said they would continue to work on permanent rules affecting THC and CBD products. 

The federal legislation, however, is likely to halt or significantly change Texas' plans to draft permanent rules on the sale of these products. Why? What Texas is attempting to regulate could become illegal a year from now.

Stacy Allen, an attorney with TAB’s longtime state legal counsel Jackson Walker LLP, said Texas broadcasters must remain vigilant if stations are contemplating accepting such advertising.

“The regulation by federal and Texas authorities of these products is in almost constant flux and is often contradictory.  Reliance on advertisers’ assurances of compliance with those shifting regulations is of little comfort.  The risks of violating these rules should be carefully weighed against the revenue such ads would likely generate,” Allen said.  

If the state proceeds with permanent rules, they could impact broadcasters’ due diligence on a product’s ability to be advertised. For now, the state’s temporary rules are in effect until the latter part of December, with a potential extension of 60 more days. 

TAB will monitor the rulemaking process and will advise stations, as necessary.

While the sale and advertising of certain types of THC and CBD-related cannabis products is currently legal, TAB reminds stations that the existing regulations that allow it are quite specific. Stations accepting such advertising do so at their own risk and therefore must perform the necessary due diligence or risk the consequences of advertising an illegal product. Jackson Walker LLP has prepared an advisory for TAB members on advertising marijuana and hemp-based CBD products under current Texas law. 

View TAB’s CBD Advertisement Legal Advisory. 

The main takeaways from the advisory are:

• Marijuana remains illegal in almost all contexts, and only three entities are authorized to dispense it for medical use under the Texas “compassionate use” law. Broadcasters should deal only with those entities and should not air advertisements that depict the consumption of marijuana.
• Broadcasters should avoid advertisements depicting consumption, suggesting illegal drug use, targeting children, or promising miraculous medicinal results that have not been adopted by the FDA.
• Broadcasters should avoid advertisements for CBD products derived from any source other than legal hemp. 
• Broadcasters should also ask advertisers to warrant the purity and THC content of their products—only hemp-derived products with Delta-9 THC in concentrations less than .3% are legal.
• Broadcasters should only air advertisements for CBD processed by licensed manufacturers, from hemp grown by licensed producers, and sold by registered distributors. Where possible, broadcasters should obtain appropriate representations, warranties, indemnification, or other certifications from prospective advertisers as to those issues.

Questions? Contact TAB’s Michael Schneider or call (512) 322-9944.

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