In a bold move that’s shaking up the $28 billion hemp industry, President Donald Trump signed a federal ban on intoxicating hemp THC products last week, pushing states like Ohio, Florida, and Illinois to ditch regulation plans and chase outright bans instead. This sudden shift leaves businesses scrambling and consumers wondering what’s next for popular items like THC drinks and edibles.
Ohio lawmakers are racing against the clock after the federal ban, set to make hemp THC products controlled substances by November 2026. A tentative deal in the state legislature would scrap earlier ideas for regulating these items and impose a blanket ban on all intoxicating hemp products, including beverages.
Gov. Mike DeWine backs this tough stance, arguing it protects public health from unregulated substances flooding gas stations and stores.
This comes just as Ohio’s cannabis market is booming after voters legalized recreational use in 2023. Hemp operators hoped for rules that would let them operate legally, but the federal action has tipped the scales toward prohibition. Industry voices say the ban could wipe out thousands of jobs and hurt small businesses that rely on these products.
One local hemp store owner in Columbus shared his frustration, noting losses already topping $500,000 as shelves empty out in anticipation.
Lawmakers met late into the night to hash out details, recommending changes to cannabis laws alongside the hemp crackdown. If passed, the ban would take effect quickly, far ahead of the federal deadline.
Florida and Illinois Join the Push for Stricter Rules
Florida officials are renewing calls to outlaw hemp-derived THC, building on past efforts to curb what they call a loophole in federal law.
Back in 2024, the state nearly passed a bill banning products like THCA and Delta-8, but it stalled. Now, with Trump’s signature on the federal ban, momentum is building again. Lawmakers argue these items skirt marijuana laws and pose risks, especially to young people.
In Illinois, similar talks are heating up. State leaders had considered regulating hemp THC but are now leaning toward a full ban to align with the new federal stance.
This mirrors a broader trend where states abandon complex regulations for simple prohibitions.
Hemp advocates warn that bans could drive the market underground, hurting legal operators while failing to stop illegal sales.
A recent court ruling in the Fourth Circuit upheld some hemp cannabinoids as legal under the 2018 Farm Bill, but the new law overrides that for intoxicating varieties.
Industry Fights Back Amid Economic Fallout
The hemp sector, valued at $28.3 billion according to industry reports from 2024, faces massive upheaval from these changes.
Operators point out that the federal ban includes a one-year grace period for states to set their own rules, potentially exempting low-THC items like beverages. Yet, states are moving faster and harder than expected.
Republican Congresswoman Nancy Mace is circulating a bill to block the federal ban’s implementation, vowing to fight it over the next year. She calls it a blindside attack on a growing industry that supports farmers and small businesses.
In Ohio, podcasts and local media are buzzing with debates, highlighting how Congress never intended hemp to produce high-THC products when it legalized the crop in 2018.
Businesses are pushing back with lawsuits and lobbying, arguing the ban ignores therapeutic benefits and economic contributions.
For instance, hemp-derived products have gained popularity for pain relief and relaxation without the full effects of marijuana.
A 2025 survey by MJBizDaily found that 60% of hemp businesses fear closure if bans go through, potentially costing the U.S. economy billions in lost revenue.
Here’s a quick look at the potential impacts:
- Job Losses: Up to 100,000 positions in farming, manufacturing, and retail could vanish.
- Market Shift: Consumers might turn to black-market options, increasing safety risks.
- Revenue Hit: States like Ohio could lose millions in taxes from regulated sales.
This data comes from industry analyses conducted earlier this year, before the federal bill passed.
Broader Implications for Cannabis and Hemp Markets
The federal ban stems from a spending bill Trump signed on November 12, 2025, which reopened the government but included this surprise provision.
It targets products with high THC levels, classifying them as Schedule I substances like heroin, despite hemp’s low-THC definition.
This move reverses parts of the 2018 Farm Bill, which separated hemp from marijuana and sparked a boom in CBD and other derivatives.
In states with legal cannabis, like Ohio since 2023, the ban creates confusion. Adults can possess up to 2.5 ounces of marijuana, but hemp alternatives might disappear.
Florida, without full recreational legalization, sees this as a way to tighten controls.
Illinois, a recreational state since 2020, worries about unregulated hemp undercutting licensed dispensaries.
Experts say this could reshape the entire cannabis landscape, forcing companies to pivot or shut down.
One analyst noted that while the ban aims to protect kids from candy-like edibles, it might overlook adult users seeking milder options.
As debates rage, the hemp industry’s future hangs in the balance, with states holding the power to either regulate or eliminate these products before the federal hammer falls.
This federal hemp THC ban and the swift state responses highlight a tense battle between innovation, public safety, and economic interests, leaving many Americans caught in the crossfire as access to popular wellness products dries up.