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Congress redefines hemp, causing worries in CBD, THC industry

Farmers and businessmen attend a public workshop about growing hemp in August 2019, held by the University of Florida in Apopka. Congressional legislation used to reopen the government has caused uncertainty in the industry. File Photo by Paul Brinkmann/UPI

WASHINGTON, Nov. 26 (UPI) — A new federal definition of hemp tucked into Congress’ recently passed spending bill has reopened the debate over legal cannabis and set up a year-long fight that could determine the future of hemp-derived CBD and THCA products — and thousands of small businesses behind them.

The Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill, allowed hemp production and removed the plant from the Drug Enforcement Administration’s schedule of Controlled Substances.

But now, Congress has sharply moved to restrict the hemp industry after slipping new language into the latest continuing resolution that ended the 43-day government shutdown Nov. 13.

This change could redefine what counts as legal hemp and effectively outlaw many of the products that have fueled the sector’s rapid growth over the last seven years.

Jonathan Miller, the U.S. Hemp Roundtable’s general counsel, said this provision was introduced more than a year ago as part of the House appropriations bill. Sen. Mitch McConnell, R-Ky., then brought it to the Senate six months ago.

The controversial provision was then included in the House’s fiscal year 2026 Agriculture Appropriations draft. Lawmakers, including Rep. James Comer, R-Ky., and Rep. Andy Barr, R-Ky., publicly opposed the provision’s language, while Rep. Nancy Mace, R-S.C. was a staunch leader pushing the provision through.

“Members of Congress were forced to choose between saving the hemp industry or reopening government, and there was just too much at stake. As a result, we lost this battle. The good news is it doesn’t go to effect for a year, so we’ve got over 350 days now to try to get it reversed and to replace it with a regulatory framework,” Miller said.

The U.S. Hemp Roundtable emphasized that once the legislation moved to the Senate, McConnell included a 365-day delay before the restrictions take effect. The grace period which runs to Nov. 13, 2026, is planned to give hemp businesses time to push Congress toward adopting a regulatory framework rather than an all-out ban.

Since 2018, manufacturers and retailers have taken advantage of what some describe as a “loophole” in federal hemp regulations to produce products containing hemp-derived CBD.

Under federal law, hemp is cannabis containing less than 0.3% THC by dry weight, the psychoactive compound that produces a “high.” Because this threshold is calculated on dry weight, companies have formulated products that technically comply but may deliver stronger effects.

This loophole helped expand the hemp industry, particularly cannabidiol, or CBD, a non‑psychoactive compound touted for therapeutic benefits.

A new congressional provision would redefine hemp to include all forms of THC — including THCA — within the 0.3% limit, and prohibit hemp‑derived CBD products manufactured for consumption in beverages, edibles, or vapes.

Lawmakers argue these products exploit the current definition while producing intoxicating effects.

Many tied to hemp production have responded with fears of a widespread economic blow to an industry worth $28.4 billion and employs a large number of Americans.

“There are 300,000 jobs affiliated with the industry. Those would go away. There’s $1.5 billion of state and local tax revenue that would go away. Many farmers would would lose their farms. Many small [companies] would lose their businesses,” Miller said.

“Many consumers, including veterans and seniors, who rely on these products for their health and wellness would lose access to them.”

“It’s a $28 billion market, which means there is a ton of demand for these products. If they’re made illegal, people will find a way to access them illegally, and which means there will be no safety protections and no regulatory regime,” he added.

The U.S. Hemp Roundtable, one of the industry’s largest national coalitions, said the measure could ban “more than 95% of all hemp extract products.” While the law would continue the sales of products containing less than 0.4 mg. of total THC per container, the group says items that meet that threshold are “very rare.”

“If it goes through as is, the industry is over as we know it. Ninety-five percent of our products would be considered schedule one narcotics, akin to heroin, and the remaining 5% it would be impossible to produce because of the restrictions on extraction,” Miller said.

Conversely, supporters of including this provision in the continuing resolution that reopened the government believe closing the loophole was overdue, arguing that the hemp-derived intoxicating products are largely unregulated.

For example, the American Trade Association for Cannabis and Hemp praised Congress for moving to clarify federal intent. In a press release, it said the bill “carefully distinguishes between intoxicating and non-intoxicating products” and would, for the first time, provide federal recognition and protection for non-intoxicating hemp-derived items.

The policy shift will potentially cause conflict between federal and state governments. Several states have created their own regulatory frameworks for hemp-derived products, including testing, age limits and potency caps. These could be disrupted by the new federal standards.

“It’s difficult to say how state implementation of the new federal hemp policy will look across states. It will certainly differ based on the state policy environment and state priorities and goals,” Gillian Schauer said, executive director of the Cannabis Regulators Association.

The association is a nonpartisan, nonprofit that helps regulate cannabis, marijuana and hemp across more than 45 states, the District of Columbia, three U.S. territories and a number of international governments.

“Ultimately, regulators are primarily implementers — they will implement what comes down from their state legislatures. Most of these policy implementation decisions will be made legislatively. With legislative sessions right around the corner in most states, those decisions may be made before we have any further federal guidance,” Schauer said.

Kentucky is one of the top producing hemp states, along with California, Colorado and Oregon. The two Kentucky senators are on opposite ends of viewpoint on the provision being added.

After the continuing resolution passed, McConnell released a statement saying, ​​”I am proud to have championed this language that keeps these products out of the hands of children, secures the future of regulated hemp businesses and keeps our promise to American farmers and law enforcement by clarifying the intention in the 2018 Farm Bill.”

“The language included in [the] bill preserves the legitimate hemp industry, while addressing the rise of intoxicating and synthetic THC products. Industrial hemp and CBD will remain legal for industrial applications — such as seed, stock, fiber, grain oil — or used in drug trials, federally authorized research or research at an institution of higher education,” he added.

Countering that, Sen. Rand Paul said he opposed this provision. On the Senate floor before it passed, he said “The bill, as it now stands, overrides the regulatory frameworks of several states, cancels the collective decisions of hemp consumers and destroys the livelihoods of hemp farmers.”

He added: “Farmers’ costs have increased as the price of fertilizer and machinery have jumped, while prices for their crops, like soybean, corn and wheat, have declined. For many farmers, hemp has proved to be a lifeline, a new cash crop.”

In effect, the same language McConnell praised drew criticism from Paul, who argued it would wipe out existing markets and override state authority.

“The numbers put forward in this bill will eliminate 100% of the hemp products in our country. That amounts to an effective ban, because the limit is so low that the products intended to manage pain or anxiety will lose their effect,” Paul said.

“This bill will effectively preempt and nullify all state laws concerning hemp. Most of the things your states have regulated and made legal will be made illegal by this bill,”

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Big changes to the agency charged with securing elections lead to midterm worries

Since it was created in 2018, the federal government’s cybersecurity agency has helped warn state and local election officials about potential threats from foreign governments, showed officials how to protect polling places from attacks and gamed out how to respond to the unexpected, such as an election day bomb threat or sudden disinformation campaign.

The agency was largely absent from that space for elections this month in several states, a potential preview for the 2026 midterms. Shifting priorities of the Trump administration, staffing reductions and budget cuts have many election officials concerned about how engaged the Cybersecurity and Infrastructure Security Agency will be next year, when control of Congress will be at stake in those elections.

Some officials say they have begun scrambling to fill the anticipated gaps.

“We do not have a sense of whether we can rely on CISA for these services as we approach a big election year in 2026,” said Minnesota Secretary of State Steve Simon, a Democrat who until recently led the bipartisan National Assn. of Secretaries of State.

The association’s leaders sent a letter to Homeland Security Secretary Kristi Noem in February asking her to preserve the cybersecurity agency’s core election functions. Noem, whose department oversees the agency, replied the following month that it was reviewing its “funding, products, services, and positions” related to election security and that its services would remain available to election officials.

Simon said secretaries of state are still waiting to hear about the agency’s plans.

“I regret to say that months later, the letter remains very timely and relevant,” he said.

An agency in transition

CISA, as the agency is known, was formed under the first Trump administration to help safeguard the nation’s critical infrastructure, including dams, power plants and election systems. It has been undergoing a major transformation since President Trump’s second term began in January.

Public records suggest that roughly 1,000 CISA employees have lost their jobs in recent years. The Republican administration in March cut $10 million from two cybersecurity initiatives, including one dedicated to helping state and local election officials.

That was a few weeks after CISA announced it was conducting a review of its election-related work, and more than a dozen staffers who have worked on elections were placed on administrative leave. The FBI also disbanded a task force on foreign influence operations, including those that target U.S. elections.

CISA is still without an official director. Trump’s nomination of Sean Plankey, a cybersecurity expert in the first Trump administration, has stalled in the Senate.

CISA officials did not answer questions seeking specifics about the agency’s role in the recently completed elections, its plans for the 2026 election cycle or staffing levels. They said the agency remains ready to help protect election infrastructure.

“Under the leadership of President Trump and Secretary Noem, CISA is laser-focused on securing America’s critical infrastructure and strengthening cyber resilience across the government and industry,” said Marci McCarthy, CISA’s director of public affairs.

She said CISA would announce its future organizational plans “at the appropriate time.”

Christine Serrano Glassner, CISA’s chief external affairs officer, said the agency’s experts are ready to provide election guidance if asked.

“In the event of disruptions or threats to critical infrastructure, whether Election Day-related or not, CISA swiftly coordinates with the Office of Emergency Management and the appropriate federal, state and local authorities,” she said in a statement.

States left on their own

California’s top election security agencies said CISA has played a “critical role” since 2018 but provided little, if any, help for the state’s Nov. 4 special election, when voters approved a redrawn congressional redistricting map.

“Over the past year, CISA’s capacity to support elections has been significantly diminished,” the California secretary of state’s office said in a statement to the Associated Press. “The agency has experienced major reductions in staffing, funding, and mission focus — including the elimination of personnel dedicated specifically to election security and foreign influence mitigation.

“This shift has left election officials nationwide without the critical federal partnership they have relied on for several election cycles,” the statement said.

CISA alerted California officials in September that it would no longer participate in a task force that brought together federal, state and local agencies to support county election offices. California election officials and the governor’s Office of Emergency Services did what they could to fill the gaps and plan for various security scenarios.

In Orange County, Registrar of Voters Bob Page said in an email that the state offices and other county departments “stepped up” to support his office “to fill the void left by CISA’s absence.”

Neighboring Los Angeles County had a different experience. The registrar’s office, which oversees elections, said it continues to get a range of cybersecurity services from CISA, including threat intelligence, network monitoring and security testing of its equipment, although local jurisdictions now have to cover the costs of some services that had been federally funded.

Some other states that held elections this month also said they did not have coordination with CISA.

Mississippi’s secretary of state, who heads the national association that sent the letter to Noem, did not directly respond to a request for comment, but his office confirmed that CISA was not involved in the state’s recent elections.

In Pennsylvania, which held a nationally watched retention election for three state Supreme Court justices this month, the Department of State said it is also relied more on its own partners to ensure the elections were secure.

In an email, the department said it was “relying much less on CISA than it had in recent years.” Instead, it has begun collaborating with the state police, the state’s own homeland security department, local cybersecurity experts and other agencies.

Looking for alternatives

Simon, the former head of the secretary of state’s association, said state and local election officials need answers about CISA’s plans because officials will have to seek alternatives if the services it had been providing will not be available next year.

In some cases, such as classified intelligence briefings, there are no alternatives to the federal government, he said. But there might be ways to get other services, such as testing of election equipment to see if it can be penetrated from outside.

In past election years, CISA also would conduct tabletop exercises with local agencies and election offices to game out various scenarios that might affecting voting or ballot counting, and how they would react. Simon said that is something CISA was very good at.

“We are starting to assume that some of those services are not going to be available to us, and we are looking elsewhere to fill that void,” Simon said.

Karnowski and Smyth write for the Associated Press. Smyth reported from Columbus, Ohio.

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Dow posts record high; Nasdaq drops amid tech worries

Nov. 11 (UPI) — The Dow Jones Industrial Average posted a record high upon closing on Tuesday, while the Nasdaq Composite finished down as investors generally sold their tech holdings.

The Dow is comprised of 30 blue-chip stocks and closed at a record 47,927.96 after posting a 559.33-point rise during the day’s trading amid news that the federal government shutdown likely will end soon, according to CNBC.

The increase represented a 1.18% gain as investors, buoyed by news the shutdown is on track to end, bought shares in leading healthcare companies, including Merck, Amgen and Johnson & Johnson.

A general selloff of tech stocks accounted for the Nasdaq’s relatively poor performance on Tuesday and likely contributed to the Dow’s record close as investors switched to other investments.

“These tech companies, they’re cash-flow machines,” Logan Capital Management portfolio manager Bill Fitzpatrick told CNBC.

“It doesn’t take much, a little bit of negative news, for the sentiment to turn just a little bit, and you get an unwind that is more favorable to value equities,” Fitzpatrick explained.

The S&P 500 also posted a gain of 0.21% as it closed at 6,846.61. The tech-heavy Nasdaq, however, posted a 0.25% decrease to 23,468.30 by the end of the day’s trading.

Shares in Nvidia, the powerhouse maker of AI processing hardware, dropped by 2.96% as investor SoftBank Group sold all of its holdings in the chipmaker on Tuesday.

Nvidia’s share price closed at 193.16, which is a decrease of 5.89.

CoreWeave also adjusted down its revenue forecast for the year, which triggered a 15% decline in its share price.

The tech firm that specializes in artificial intelligence infrastructure cited delays by a data center affiliate as the cause of its lower revenue forecast.

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UM survey says government shutdown deepened economy worries to lowest point

A shopper pictured March 2020 in a Medina, Ohio, grocery store. The survey released Friday showed consumer sentiment at its lowest in three years and near its worst at UM’s second lowest reading since at least 1978 as the ongoing government shutdown by the Republican-controlled congress widens economic concern. File Photo by Aaron Josefczyk/UPI | License Photo

Nov. 7 (UPI) — A new survey by the University of Michigan suggested that Americans may be frightened over the economy as the ongoing U.S. government shutdown reverberates with no end in sight.

The survey released Friday showed consumer sentiment at its lowest in three years and near its worst at UM’s second-lowest reading since at least 1978 as the shutdown sent confidence to near-record lows as economic concerns deepen.

“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” according to survey Director Joanne Hsu.

The University of Michigan’s monthly Index of Consumer Sentiment posted a more than 6% decline to a little over 50% for the month. It was a 30% decline from about a year ago.

“This month’s decline in sentiment was widespread throughout the population, seen across age, income and political affiliation,” Hsu added.

UM’s well-documented survey showed a gradual decline in consumer confidence over the year starting in February in the wake of tax-like tariffs imposed by U.S. President Donald Trump.

“Across the economy, segments of the population are increasingly dealing with tighter financial conditions,” Elizabeth Renter, senior economist at NerdWallet, told CNBC.

Renter said that is “certainly true for federal workers and people dependent on food assistance from the federal government. But it’s also likely increasingly true for middle income Americans.”

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