A lawsuit filed by former Nebraska state Sen. John Kuehn seeking to block the state’s voter-approved medical cannabis reforms was dismissed last week in a district court, Nebraska Public Media reports.

Kuehn had argued in the suit that the medical cannabis reforms would violate state and federal law, since cannabis remains a Schedule I substance under federal law, and that his status as a Nebraska taxpayer allows him to sue over what he believes is the “illegal expenditure of taxpayer money.”

Lancaster County District Court Judge Susan Strong disagreed, however, and dismissed the case on Thursday.

“The Court does not believe that the incidental burdens of implementing a law, like employee time and printing costs, is an ‘expenditure of public funds’ sufficient to confer taxpayer standing under Nebraska law.” — Strong, via Nebraska Public Media

It was not the first lawsuit against the medical cannabis reforms brought by the former state senator that Strong dismissed — the district court judge in November rejected another lawsuit from Kuehn that had accused the medical cannabis campaign of improperly obtaining petition signatures, saying the plaintiffs fell “well short” of showing the signatures were invalid.

Nebraskans for Medical Marijuana Executive Director Crista Eggers said in a statement that the group appreciates the “thoughtful decision” to dismiss the latest lawsuit brought by Keuhn.

“This is yet another failed attempt to strip away the will of the people, and should send a clear message to the opposition that they have lost,” Eggers said in the report.

In the end, Nebraska voters overwhelmingly approved the state’s medical cannabis proposal despite political opposition from Kuehn and even current state officials like Secretary of State Bob Evnen.

State lawmakers, however, have repeatedly failed this year to advance legislation to implement the voter-approved reforms.

A GOP senator says that an effort to ban THC hemp products that’s advancing in the Republican-controlled House would “completely destroy” the industry.

Sen. Rand Paul (R-KY) told Marijuana Moment on Thursday that he’s opposed to cannabis language included in a House agriculture spending bill that’s being championed by noted prohibitionist Rep. Andy Harris (R-MD).

Asked for his thoughts on the proposal, the senator said “they have an appropriations bill that I think would completely destroy the American hemp industry.”

“I don’t know how you’d be able to sell CBD oil with that,” he said, echoing arguments from certain hemp stakeholders who say the legislation as currently drafted would ban not only synthetic intoxicating cannabinoids like delta-8 THC but also most hemp-derived non-intoxicating cannabidiol products.

While Harris amended report language attached to the bill that clarifies it’s not the intent of the committee to stop people from accessing “industrial or nonintoxicating 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. And it’s rare to find CBD items without any natural traces of THC.

Paul recently filed a bill that would go in the opposite direction of Harris’s 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, last week. It mirrors versions he’s sponsored over the last several sessions.

Hemp and its derivatives were legalized under the 2018 Farm Bill, but the industry has experienced multiple setbacks in the years since—and the proliferation of intoxicating cannabinoid products has led to pushes in Congress and state legislatures across the country to reign in the largely unregulated market.

Harris, for his part, told Marijuana Moment last week 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 2026 spending legislation that contains provisions to ban consumable hemp products with any quantifiable amount of THC advanced out of the House Appropriations Committee on Monday and is now headed to the floor before potentially getting taken up by the Senate.

Harris—who serves as chair of the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies—also noted in the interview with Marijuana Moment that there “was no opposition [to the hemp provisions] that came up in committee, that’s for sure.”

He also briefly weighed in on the Texas governor’s recent veto of a bill to recriminalize hemp products with any THC—simply stating that he’s “not paying attention to what a single state is doing” while he focuses on enacting the proposed federal ban.

The language in the congressional bill, meanwhile, would still effectively eliminate the most commonly marketed hemp products within the industry, as even non-intoxicating CBD items that are sold across the country typically contain trace amounts of THC. Under current law, those products are allowed if they contain no more than 0.3 percent THC by dry weight.

The proposed policy championed by Harris would drastically change that. It would instead maintain the legal status of “industrial hemp” under a revised definition that allows for the cultivation and sale of hemp grown for fiber, whole grain, oil, cake, nut, hull, microgreens or “other edible hemp leaf products intended for human consumption.”

The Congressional Research Service (CRS) released a report this month 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.

There are some differences between the prior spending bill and this latest version for 2026, including a redefining of what constitutes a “quantifiable” amount of THC that’d be prohibited for hemp products.

It now says that a quantifiable amount is “based on substance, form, manufacture, or article (as determined by the Secretary of Health and Human Services in consultation with the Secretary of Agriculture),” whereas it was previously defined as an amount simply “determined by the Secretary in consultation with the Secretary of Health and Human Services.”

The proposed legislation also now specifies that the term hemp does not include “a drug that is the subject of an application approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355),” which seems to carve out an exception for Food and Drug Administration- (FDA) approved drugs such Epidiolex, which is synthesized from CBD.

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.”

“By pushing a rapidly evolving industry back into the shadows, Congress is creating even more chaos in the marketplace, undermining state initiatives and punishing responsible actors,” he said. “We urge the full House to reconsider this approach. States can regulate intoxicating products safely and effectively through systems that preserve consumer trust and public safety. It’s time for Congress to follow their lead, not override their authority.”

Members of WSWA also met with lawmakers and staffers in April to advocate for three key policy priorities that the group says is based on “sound principles of alcohol distribution.” They include banning synthetic THC, setting up a federal system for testing and labeling products and establishing state-level power to regulate retail sales.

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.

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Jonathan Miller, general counsel of 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.

The LCB contributed reporting from Washington, D.C. 

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