White House, Congress Clash Over Future of Cannabis and Hemp

AUSTIN, TX – December 18, 2025 – The future of cannabis and hemp in the United States has been thrown into a state of unprecedented confusion, as the White House and Congress move in starkly opposite directions. In a landmark decision today, President Donald Trump issued an executive order to expedite the rescheduling of marijuana and protect access to hemp-derived CBD, a move praised by industry advocates. Yet, this action comes just weeks after Congress passed, and the President signed, a bill containing provisions that threaten to dismantle the nation's multi-billion-dollar hemp economy.

The conflicting signals from the two branches of government have created a high-stakes policy tug-of-war, leaving businesses, farmers, and millions of consumers caught in the middle. The Texas Hemp Business Council (THBC), an industry advocacy group, captured the sentiment, applauding the President's executive action while simultaneously warning of the catastrophic impact of the new congressional law.

A Tale of Two Policies: Executive Action vs. Congressional Clampdown

President Trump's executive order, titled "Increasing Medical Marijuana and Cannabidiol Research," directs the Attorney General to accelerate the process of moving marijuana from Schedule I to Schedule III under the Controlled Substances Act. This shift, long recommended by health officials, formally acknowledges marijuana's accepted medical use and aims to lower barriers to scientific research. While it stops short of federal legalization, it represents one of the most significant federal cannabis policy reforms in over 50 years.

Crucially, the order also addresses the burgeoning market for hemp-derived products. A White House fact sheet accompanying the order notes that “hemp-derived cannabinoid products, primarily containing CBD, are not controlled substances under the CSA but currently lack a clear FDA regulatory pathway, limiting product consistency and consumer protections.” To address this, the President urged Congress to safeguard patient access and directed federal health agencies to develop a clear regulatory framework for CBD products, even announcing a pilot program for Medicare reimbursement for certain treatments.

This move toward regulatory clarity and access stands in jarring contrast to H.R. 5371, a government spending bill enacted on November 12, 2025. Tucked within the legislation are sweeping amendments that effectively recriminalize the vast majority of popular hemp-derived products. The new law radically redefines "hemp" by calculating total THC content, closing a loophole that allowed for high concentrations of intoxicating cannabinoids like Delta-8 THC.

More critically, it imposes an unprecedented cap of just 0.4 milligrams of total THC per container for finished consumer products. This micro-dose threshold effectively bans most full-spectrum CBD oils, edibles, beverages, and vapes that have become commonplace since the 2018 Farm Bill legalized hemp. The industry has been given a one-year grace period until November 12, 2026, before these crippling restrictions take effect.

The Economic Fallout: A Multi-Billion-Dollar Industry on the Brink

The economic stakes of this legislative clampdown are immense. The Texas Hemp Business Council warns that the provisions in H.R. 5371 will "dismantle the $28 billion U.S. hemp economy." While market estimates vary, all point to a massive and thriving sector now facing an existential threat. The hemp-derived THC market alone grew to an estimated $2.8 billion in 2023, while the broader hemp CBD market was projected to reach $16 billion by 2025.

Industry leaders argue that H.R. 5371 puts hundreds of thousands of jobs at risk. The THBC estimates that the ban could eliminate 300,000 jobs nationwide, with over 53,000 in Texas alone, shuttering thousands of small businesses that have sprung up over the past seven years.

“These provisions endanger farmers and small businesses, while driving consumers and veterans toward unregulated and unsafe markets,” the THBC stated in their response. The council specifically criticized Senator Mitch McConnell, a key champion of the original 2018 Farm Bill, for supporting the new restrictions and perpetuating what they called "long-debunked anti-hemp narratives." The fallout extends from retail storefronts back to the agricultural source, threatening the livelihoods of farmers who invested heavily in hemp cultivation based on the promise of the 2018 law.

Navigating the Regulatory Maze: Consumers and Businesses in Limbo

The policy whiplash places the Food and Drug Administration (FDA) in a pivotal but difficult position. For years, the agency has maintained that CBD cannot be legally marketed as a dietary supplement, creating a gray market that President Trump's executive order now seeks to legitimize through a formal regulatory pathway. The order directs the FDA to establish guidance on THC limits and product ratios to ensure safety and consistency.

However, H.R. 5371 simultaneously forces the agency's hand in the opposite direction. The law mandates that the FDA publish lists of all naturally occurring and intoxicating cannabinoids within 90 days, a move intended to provide a clear basis for enforcing the new, near-zero THC limits. This creates a scenario where one federal directive calls for creating a safe, accessible market while another provides the tools to eliminate it.

This regulatory chaos has profound implications for consumer safety. Industry groups and consumer advocates warn that banning legally produced and tested products will not eliminate demand. Instead, it risks pushing the market underground, where products are unregulated, untested, and potentially dangerous. The THBC emphasized this point, noting that "hemp-derived cannabinoid products have been safely used by millions of American adults, including U.S. veterans, since the passage of the 2018 Farm Bill."

A Divided Front: Stakeholders React to Federal Whiplash

The reaction from stakeholders has been as divided as the policies themselves. While the THBC praised the President's executive order as "decisive action toward a rational, science-based cannabis policy," its condemnation of the congressional bill was unequivocal. This sentiment is shared across much of the hemp industry, which now faces a year-long countdown to potential collapse.

The legislative battle over H.R. 5371 revealed deep divisions even within the Republican party. Senators Rand Paul and Ted Cruz both made unsuccessful attempts to remove the restrictive hemp language from the bill. One congressional source noted that some lawmakers believe a "one-size-fits-all federal standard will undoubtedly create unintended consequences that harm consumers," arguing that states should retain the right to set their own rules. In contrast, other state leaders have praised the federal clampdown as a victory for public health.

Meanwhile, the broader cannabis industry and reform advocates like NORML have cautiously welcomed the President's rescheduling directive, viewing it as a historic validation of the plant's medical value. However, they also note that rescheduling does not resolve the fundamental conflict between state and federal law. For now, the entire cannabis and hemp sector is left to navigate a turbulent and contradictory landscape, where one branch of government is extending an olive branch while the other is wielding a hammer.