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Trump’s Federal Budget Cuts Could Boost Marijuana Legalization Efforts As States Seek New Revenue, Congresswoman Says

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A Democratic congresswoman says the Trump administration’s push to make states pay a larger share for public services such as food assistance and health care amid his efforts to cut federal spending might ultimately “push them in the direction of legalizing marijuana” so they can offset those costs with cannabis tax revenue.

In an interview on the National Cannabis Industry Association (NCIA) Voice of Cannabis podcast that was released on Thursday, Congressional Cannabis Caucus co-chair Rep. Dina Titus (D-NV) commented on a wide range of marijuana policy issues—including bipartisan legalization legislation, stalled action on federal reform and the destigmatization of cannabis use in her state after enacting an adult-use marijuana market.

One of the “only good things that comes out of the policy of the White House is that they are pushing more things to the states to pay for—like [Supplemental Nutrition Assistance Program (SNAP)] and like Medicaid—and so states may be looking for additional sources of revenue,” Titus said. “That may push them in the direction of legalizing marijuana, to some extent, so they can get that tax revenue generated.”

Titus said the lawmakers who back reform were initially “optimistic” about the prospects of a federal policy change under President Donald Trump because of comments he made on the campaign trail in favor of rescheduling, industry banking access and a Florida adult-use legalization ballot initiative left the impression “he was going to be supportive.”

“Now we’ve seen that kind of stall, and we have this crazy secretary of [the U.S. Department of Health and Human Services (HHS)] that I think is on drugs,” the congresswoman said, referencing Robert F. Kennedy Jr. “I don’t know where he’s coming from, and so it’s hard to read what the administration is going to do and if they’re going to make it a priority and if they’re going to weigh in. So that’s another element of the politics that we have to keep in mind.”


NCIA’s Voice of Cannabis Podcast | Ep. 6: Congresswoman Dina Titus w/ Aaron Smith & Jimmy Young

She added that, within federal circles, the “emphasis has shifted over to psychedelics that seems to capture the media more— and I think that blurs our message and may not necessarily work to our advantage. We got to be sure that we aren’t taken off down some other path and we don’t accomplish [cannabis reform] before we go.”

To that end, several top administration officials, including Kennedy, have been advocates for expanding research and access to psychedelics.

NCIA’s Aaron Smith also asked Titus about her personal evolution on the issue and the unique dynamics between Nevada’s gaming and cannabis industries.

The congresswoman acknowledged that the gaming sector did initially oppose the push to legalize marijuana “because they weren’t sure what the impact would be on their bottom line.”

“It’s like the appeal to millennials: How does gaming do that? So they were afraid, ‘Well, people are just sitting around getting stoned and listening to music. They’re not going to come down to casinos. How’s that going to impact us?’” she said. “But now we have moved from medical marijuana to recreational marijuana” and added cannabis consumption lounges to the program.

 

“So that’s harder to kind of set up and figure out how to operate to keep marijuana separate from alcohol. But that’s kind of in progress, and we’ll see how that works out. But there’s not any real stigma to it here in Nevada anymore,” Titus said, sharing an anecdote about how during the last election, her team decided to experiment with meeting and registering voters who were lined up outside of cannabis dispensaries.

“We were out there doing that, but, unfortunately, a lot of the people there were tourists. They weren’t people who lived in Nevada, so didn’t help us politically very much,” she said.

As far as federal reform goes, although the congresswoman feels efforts have stalled compared to expectations—and attention to psychedelic policy issues may have diverted attention from marijuana—she still anticipates that “the effort will kick up” once Congress deals with budget-related issues.

“It’s just so hard to say about this administration. I mean every policy position they take, they switch the next day or the next hour. Look at tariffs—back and forth, back and forth. Employees of the federal government, same thing,” she said. “So it’s hard for me to predict, but until they kind of get on board more, I think you will still see a reluctance by Republicans in Congress. So I’m not going to bet on a certain day.”

“I mean, I know the odds, so I’m not going to do that—but I think you will see enthusiasm, or at least attention to it, ramp up some,” Titus said. “It’s not just getting it passed on the floor. We got to get it to move out of committee, and that’s the first really big step. If you make that happen, then on the floor might be a little easier, and it’s going to take both houses.”

“The House has been more willing to pass some of this legislation than the Senate has, and so I think that’s where your work is really cut out for you in from the lobby and advocacy side,” she said.

The congresswoman also weighed in on a bipartisan bill—the Strengthening the Tenth Amendment Through Entrusting States (STATES) 2.0 Act—that she filed in April alongside fellow Cannabis Caucus co-chair Rep. Dave Joyce (R-OH) to end federal marijuana prohibition in states that have legalized it, while providing for a basic federal regulatory framework for cannabis products.

The provisions of the STATES Act “didn’t go as far as a lot of Democrats would like to see,” she said. “They’d like to see it totally deregulated or descheduled, but we’re starting to realize that you’ve got to eat this one bite at a time, and this would be a good way to do it,” she said. “Republicans like to talk about states’ rights, and that’s what this does. And we recognize that states are so far ahead of the federal government that if we’re not going to catch up, we at least need to get out of the way. And I think that’s the message that this bill sends.”

Key GOP Congressmen, Including Pro-Marijuana Legalization Member, Defend Effort to Ban Consumable Hemp Products

Photo courtesy of Philip Steffan.

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Mitch McConnell Blasts Rand Paul Over Hemp Dispute, Saying He ‘Derailed’ A Push To Criminalize THC Products

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Sen. Mitch McConnell (R-KY) took to the Senate floor on Friday to lambast opponents of his proposal to ban hemp THC products, including his home-state GOP colleague who he said “derailed” his attempt to recriminalize most consumable cannabinoids through a key spending bill.

During a floor speech, McConnell acknowledged that he “led the effort” to legalize hemp as part of the 2018 Farm Bill, which spurred “tremendous growth” in the industry, “especially in Kentucky.”

“Hemp is used in food, clothing, paper, plastic and many of our consumer products. Its versatility gave farmers hope for a new and profitable cash crop,” he said. “Unfortunately, some companies looking to make a quick buck have been exploiting a loophole in the 2018 Farm Bill by taking legal amounts of THC from hemp and turning it into intoxicating substances.”

“They take these synthetic chemicals and use them as ingredients in appealing snack- and candy-like products and distribute them in familiar packaging,” the senator said. “Young children are consuming these snacks—thinking they’re candy, not poison. On top of that, these products are easily accessible and be purchased at convenience stores.”

“Some of them are even more intoxicating than actually smoking marijuana. So let me repeat that: Products more potent than marijuana can be brought off the shelf of a gas station,” he said, adding that he’s tried to get the Food and Drug Administration (FDA) to regulate such products, but “they’ve not taken the initiative to do so, which has certainly been an ongoing disappointment.”


McConnell: We Should Grow Hemp and Protect Kids at the Same Time

Short of FDA regulation of the market, McConnell tried to ban hemp with any “quantifiable” amount of THC as part of appropriations legislation covering Agriculture, Rural Development, Food and Drug Administration, and Related Agencies (Ag/FDA).

But when Sen. Rand Paul (R-KY) threatened to procedurally hold up the underlying bill if the hemp language remained, McConnell acquiesced.

“This language would have remained in the appropriations package had one senator not derailed the process,” he said, apparently referring to Paul. “We need the appropriations process to function. Congress needs to do its job and fund the government.”

“So in order to move the package forward, I allowed my language to be stripped from the bill,” he said. “But my effort to root out bad actors, protect our children, support farmers and reaffirm our original legislative intent will continue.”

“For the sake of those misguided by my opponents on this issue, let me clarify a few things. You’ll hear from some that this language would have meant the total destruction of the hemp industry. Well, obviously that’s wrong,” the senator said. “Under my language, industrial hemp and CBD would have remained legal. Period. Some predicted there would be widespread economic downturn for farmers should this language become law. Wrong again.”

Despite having the hemp ban provisions stripped from the spending bill in negotiations, McConnell filed another amendment to the Ag/FDA bill on Wednesday to reinstitute the policy, with substantively identical language except for some technical and structural changes from the original provisions.

Two industry sources told Marijuana Moment on Friday that it’s their understanding that McConnell’s new amendment will not receive a vote. And in his floor speech, the senator seemed to concede that the ban would not be included in the appropriations package that’s before the Senate.

The proposal has been aggressively opposed by the hemp industry, as well as Paul, who put forward his own amendment earlier this week to formally strike the hemp THC prohibition provisions that he says would “destroy” the market.

One source said it’s also their expectation that Paul’s amendment—as well as another that he filed as a compromise, banning synthetic cannabinoid products but maintaining the current 0.3 percent THC limit for naturally derived cannabinoids—will also not receive a vote on the floor.

The key contention with the original bill and McConnell’s amendment is that it would redefine hemp, which was federally legalized under the 2018 Farm Bill with strong banking from the former majority leader, to recriminalize hemp containing any “quantifiable” amount of THC.

While some have argued that concerns about the impact of that change are overblown and that it isn’t meant to disrupt the non-intoxicating CBD market, for example, industry stakeholders have pointed out that the zero-THC standard is unworkable from a manufacturing perspective because of the nature of the plant.

“We’re hoping to fix it so they don’t kill the hemp industry,” Paul told Ask a Pol on Tuesday, adding that, “We think there are gonna be some changes in the bill.”

Separately, Sen. Amy Klobuchar (D-MN) filed an amendment to the Ag/FDA spending bill on Wednesday that would appropriate $250,000 for the U.S. Department of Agriculture (USDA) to expedite fiber research on industrial hemp between the Cereal Disease Laboratory and the Cotton Fiber Bioscience and Utilization Research Unit, including cooperative agreements with qualified nonprofit organizations.

Meanwhile, longtime cannabis reform advocate Sen. Jeff Merkley (D-OR) sided with his colleague, Paul, telling Marijuana Moment on Wednesday that the proposed hemp ban “really destroys the CBD industry, which I’m not okay with.”

“So we’re trying to work out an alternative,” he said, while conceding that he agrees with McConnell that there is an area of federal hemp law that he also wants to see changed.

One of Paul’s two recently filed amendments would exclude from the definition of federally legal industrial hemp any product containing “cannabinoids that are not capable of being naturally produced by a Cannabis sativa L. plant” as well as those that “are capable of being naturally produced by a Cannabis sativa L. plant” but “were synthesized or manufactured outside the plant.”

It would otherwise maintain the legal status of plants with “delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent in the plant on a dry weight basis” and derivative products unless they have a “delta-9 tetrahydrocannabinol concentration of more than 0.3 percent, as determined based on the substance, form, manufacture, or article of the product.”

It should be noted that, regardless of what ultimately happens on the Senate side, the broad hemp product ban provisions are still included in the House version of the agriculture appropriations bill, so it’s possible the the language could end up making it into the final version of legislation sent to the president’s desk later this year.

Paul told Marijuana Moment late last month that the proposal—which largely mirrors provisions of a House version of the spending bill, championed by Rep. Andy Harris (R-MD)—would “completely destroy” the industry.

On the House side, while Harris amended report language attached to the chamber’s bill clarifying that it’s not the intent to stop people from accessing “industrial or non-intoxicating hemp-derived cannabinoid products with trace or insignificant amounts of THC,” the bill itself still says that products containing any “quantifiable” amounts of THC couldn’t be marketed.

Meanwhile, Paul recently filed a standalone bill that would go in the opposite direction of the hemp ban, proposing to triple the concentration of THC that the crop could legally contain, while addressing multiple other concerns the industry has expressed about federal regulations.

The senator introduced the legislation, titled the Hemp Economic Mobilization Plan (HEMP) Act, in June. It mirrors versions he’s sponsored over the last several sessions.

Harris, for his part, told Marijuana Moment that he’s not concerned about any potential opposition in the Senate—and he also disputed reports about the scope of what his legislation would do to the industry.

The Congressional Research Service (CRS) released a report in June stating that the legislation would “effectively” prohibit hemp-derived cannabinoid products. Initially it said that such a ban would prevent the sale of CBD as well, but the CRS report was updated to exclude that language for reasons that are unclear.

The hemp language is largely consistent with appropriations and agriculture legislation that was introduced, but not ultimately enacted, under the last Congress.

Hemp industry stakeholders rallied against that proposal, an earlier version of which was also included in the base bill from the subcommittee last year. It’s virtually identical to a provision of the 2024 Farm Bill that was attached by a separate committee last May via an amendment from Rep. Mary Miller (R-IL), which was also not enacted into law.

A leading alcohol industry association, meanwhile, has called on Congress to dial back language in the House spending bill that would ban most consumable hemp products, instead proposing to maintain the legalization of naturally derived cannabinoids from the crop and only prohibit synthetic items.

Wine & Spirits Wholesalers of America (WSWA) President and CEO Francis Creighton said in a press release that “proponents and opponents alike have agreed that this language amounts to a ban.”

Separately, key GOP congressional lawmakers—including one member who supports marijuana legalization—don’t seem especially concerned about provisions in the bill despite concern from stakeholders that it would put much of the hemp industry in jeopardy by banning most consumable products derived from the plant.


Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug policy bills in state legislatures and Congress this year. Patreon supporters pledging at least $25/month get access to our interactive maps, charts and hearing calendar so they don’t miss any developments.


Learn more about our marijuana bill tracker and become a supporter on Patreon to get access.

Jonathan Miller, general counsel at the U.S. Hemp Roundtable, told congressional lawmakers in April that the market is “begging” for federal regulations around cannabis products.

At the hearing, Rep. James Comer (R-KY) also inquired about FDA inaction around regulations, sarcastically asking if it’d require “a gazillion bureaucrats that work from home” to regulate cannabinoids such as CBD.

A report from Bloomberg Intelligence (BI) last year called cannabis a “significant threat” to the alcohol industry, citing survey data that suggests more people are using cannabis as a substitute for alcoholic beverages such a beer and wine.

Last November, meanwhile, a beer industry trade group put out a statement of guiding principles to address what it called “the proliferation of largely unregulated intoxicating hemp and cannabis products,” warning of risks to consumers and communities resulting from THC consumption.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

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Texas Senate Passes Bill To Criminalize Most Consumable Hemp Products, Sending It To House

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The Texas Senate has now formally pass a bill that would outlaw consumable hemp products with any detectable amount of THC—even as the governor, who recently vetoed similar legislation during the regular session, continues to call for the state to regulate rather than ban the products outright.

Senators voted 21–8 to approve SB 5, from Sen. Charles Perry (R), on third reading Friday, two days after advancing the measure on second reading. With the body’s sign-off, the proposal now proceeds to the House, where companion bill HB 5 has also been filed as part of an ongoing special legislative session.

“I’m not criminalizing something. This is already illegal,” Perry said before the final Senate vote, arguing that the hemp industry is using a “loophole” it fabricated to sell intoxicating products. “Pot has been illegal in this country for since the 30s. It’s illegal in the state today. So I’m not criminalizing anything that’s not already illegal.”

Other senators argued that it would be better to enact regulations than prohibition.

“I don’t think a ban is the right solution,” said Sen. Nathan Johnson (D). “A ban on hemp-derived THC products amounts to criminalization of something that is widely used recreationally by thousands and thousands and thousands of Texans.”

“What we should be doing is decriminalizing the social recreational use of marijuana for those who choose to use it, and decriminalizing the use of hemp by regulating it,” he said. “I do think that we have the ability as a state to regulate it. I do think that revenue from taxation of hemp-derived THC can be used to promote the very law enforcement we’re going to need in order to run a responsible regulatory regime.”

Sen. José Menéndez (D) said he appreciated that Perry and supporters of the ban want to “make sure that people, especially children don’t get hurt.”

But “I also worry about the criminalization in your bill. I think that every single arrest, every lab test, every court date caused by the new offenses of this are going to come, potentially, at the expense of focusing on other crimes,” he said.

“Cannabis has been around for thousands of years,” Menéndez pointed out. “It’ll just relocate, go underground, much like alcohol did during Prohibition… I think this bill is going to push back some people back to opioids… We can’t legislate common sense. We can’t legislate morality.”

As lawmakers consider banning consumable hemp products with any detectable amount of cannabinoids aside from CBD and CBG—which Perry has said are demonstrably nonintoxicating—others are calling for the state to instead regulate products with relatively small amounts of THC.

At a press conference Wednesday, for example, a group of Democratic state senators introduced two new cannabis-related bills, including one that would regulate the hemp market, allowing adults 21 and older to purchase hemp products containing no more than 5 mg of THC per serving.

A second new bill would effectively legalize cannabis for adult use by removing criminal penalties for possession of up to two ounces of marijuana on a person and up to 10 ounces in a single household if it’s secure and out of sight. Cultivation of up to six plants, only half of which could be mature, would also be legalized.

Gov. Greg Abbott (R), who during the state’s regular legislative session this year vetoed a similar hemp product ban, SB 3, has also backed the idea of limiting THC potency and prohibiting sales to minors rather than outlawing products entirely.

“We want to make sure adults still have the liberty to be able to have access to non-intoxicating hemp-based products,” Abbott said in an interview with The Texan, adding that “as long as

are below three milligrams of THC content, they are non-intoxicating.”

“I’m not in favor of a total ban,” he said, adding that he does support restrictions on synthetic cannabinoids and youth access to hemp products.

“I am, to be clear, in favor of a ban for those under the age of 21,” the governor explained. “I am in favor of a ban of any type of synthetic that can be added to these products that would make the product more dangerous. I am in favor of a ban of any hemp-based product that reaches an intoxication level, and that is more than three milligrams of THC.”

As Abbott has done in other interviews around the hemp bill, he again gave a somewhat confusing explanation of what he views as allowable THC limits in hemp, variously saying there should be a “three percent” or “three milligram” cap, which is a meaningful difference.

On the House side, meanwhile, the sponsor of HB 5—which is currently identical to SB 5—has said that he intends the bill’s language to be “a starting point,” suggesting future changes would be made based on feedback to the proposal.

“We will hear many hours of testimony and allow that testimony to inform our future direction and decisions,” Rep. Gary VanDeaver (R), who chairs the House Committee on Public Health—where HB 5 will be first considered—wrote in a recent letter to the panel’s other members.

Under the current proposal, consumable hemp products with any amount of THC—or any other cannabinoid besides CBD and CBG—would be illegal. Even mere possession would be punishable as a Class B misdemeanor, carrying up to 180 days in jail and a $2,000 fine.

Some advocates are hopeful that either SB 5 or its House counterpart could see revisions as they make their way through the legislative process—either to affirmatively regulate the hemp market or to at least ease some of the criminal penalties on individuals found in possession of the affected products.

Heather Fazio, director of the advocacy group Texas Cannabis Policy Center, urged supporters in an email to reach out to their representatives and call for changes.

“It is my hope,” she wrote, “that HB 5 will be re-worked to regulate THC and eliminate criminal penalties for possession.”

(Disclosure: Fazio supports Marijuana Moment’s work via a monthly Patreon pledge.)

As the ban legislation has advanced, many policymakers have Notably, Abbott in June signed a bill into law that expanded the state’s list of medical cannabis qualifying conditions, adding chronic pain, traumatic brain injury (TBI), Crohn’s disease and other inflammatory bowel diseases, while also allowing end-of-life patients in palliative or hospice care to use marijuana.

SB 5 and companion HB 5 are among a small handful of bills introduced for the new special session to address consumable hemp products.

Among other proposals are measures to require extensive product warning labels and limit how hemp products are packaged.

Two other newly introduced bills are HB 160 from Rep. Charlene Ward Johnson (D) and SB 39 from Sen. Judith Zaffirini (D).

The former would require a number of warning labels to be carried on hemp products with any more than trace amounts of THC, cautioning that the products can cause “cannabis poisoning that can be life-threatening to children,” harm brain development in youth, increase “risk of mental disorders like psychosis and schizophrenia” and lead to anxiety, depression and substance abuse disorders.

SB 39, meanwhile, would prohibit hemp products from being packaged or marketed “in a manner attractive to children,” limiting packaging shaped like humans, animals, fruit, cartoons or “another shape that is attractive to minors” as well as packaging that looks similar to legal products already marketed to children, for example candy or juice. It would also outlaw misleading product packaging. Violations would be a Class A misdemeanor, carrying up to a year in jail and a $4,000 fine.

Separately, Rep. Nicole Collier (D) introduced a one-page bill, HB 42, designed to protect consumers in the state from criminal charges if what they believed was a legal hemp product turned out to contain excessive amounts of THC, making it illegal marijuana. It would prevent the criminalization of someone found in possession of a product that’s labeled as hemp but is determined to contain “a controlled substance or marihuana.”

In order for the person to obtain the legal protection, the product would need to have been purchased “from a retailer the person reasonably believed was authorized to sell a consumable hemp product.”

Another bill—HB 195, introduced by Rep. Jessica González (D)—would legalize marijuana for people 21 and older, allowing possession of up to 2.5 ounces of cannabis, with no more than 15 grams of that amount being in concentrated form.

Yet another proposal would order state officials to conduct a study on testing for THC intoxication.

As for what Texans themselves want to see from their representatives, proponents of reining in the largely unregulated intoxicating hemp industry in Texas shared new polling data indicating that majorities of respondents from both major political parties support outlawing synthetic cannabinoids, such as delta-8 THC.

The survey also found that respondents would rather obtain therapeutic cannabis products through a state-licensed medical marijuana program than from a “smoke shop selling unregulated and untested hemp.”

Ahead of the governor’s veto last month of SB 3—the earlier hemp product ban—advocates and stakeholders had delivered more than 100,000 petition signatures asking Abbott to reject the measure. Critics argued that the industry—which employs an estimated 53,000 people—would be decimated if the measure became law.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

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First Kentucky Medical Cannabis Dispensary Approved to Open This Fall

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Kentucky officials have approved the commonwealth’s first medical cannabis dispensary for operations, the Louisville Courier-Journal reports.

Gov. Andy Beshear (D) announced the approval of The Post Dispensary in a social media post on Thursday, “Great news, Kentucky — today, we approved the state’s first medical cannabis dispensary for operations in Beaver Dam.”

“This is another step forward as we work to ensure Kentuckians with serious medical conditions have access to the medicine they need and deserve.” — Beshear, in a statement

The governor said the shop is expected to open its doors this fall — however, the exact date it will open remains undetermined, the report said.

Kentucky approved its medical cannabis law in 2023, and the medical cannabis legalization policy formally took effect on January 1 of this year. Officials awarded the program licenses via lottery in 2024; the lottery-based licensing process has prompted lawsuits by rejected applicants, however, and even an investigation by the Kentucky state Auditor Allison Ball.

More than 16,000 patients have been certified to use medical cannabis, and more than 11,500 patients have been issued their medical cannabis IDs, the Lexington Herald-Reporter reports. Qualifying conditions for the program include cancer, PTSD, multiple sclerosis, chronic pain, and others.

Based in Portland, Oregon, Graham is Ganjapreneur’s Chief Editor. He has been writing about the legalization landscape since 2012 and has been contributing to Ganjapreneur since our official launch in…



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