Over the weekend, Congressional leadership removed language from a spending bill released Tuesday morning that would delay the upcoming ban on hemp THC, MJBizDaily you are educated.
In addition to creating more uncertainty for hemp growers and operators ahead of the planting season, the hemp backlash in Washington promises to delay when insurance will pay for CBD treatment, as President Donald Trump promised last month, industry lobbyists said.
The $28 billion US hemp industry has been on alert since November, when a deal to end federal prohibition redefined hemp under federal law to recriminalize the popular THC products derived from hemp.
With the temporary spending package set to expire at the end of January, lawmakers are working on another funding bill. Hemp interests are pushing for a one- or two-year delay in the bill to avoid future bans.
Press to save hemp THC on your short-term utility bill
Language that would do so — similar to an independent bill introduced in the House by Indiana Republican Rep. Jim Baird and Minnesota Democratic Rep. Angie Craig – was included in a draft version of the bipartisan funding bill, several sources said. MJBizDaily.
But with the Republican Party’s slim majority in the House, individual members have more power.
And enough members of the House Freedom Caucus — led by US Rep. Andy Harris, a Maryland Republican who wrote the ban language — moved to remove the THC ban language for hemp, Washington lawmakers said. MJBizDaily.
Lobbyists hope that a ban on hemp THC can be avoided – and with it, chaos and uncertainty for hemp farmers and workers who rely on the large market for THC products derived from hemp.
“As the days go on, we’re getting more and more support from Congress and other major policy players,” said Jonathan Miller, general counsel for the US Hemp Roundtable, a major lobby in Washington.
“I am very hopeful that we will be added,” he added. “We may not get it by the end of this month, but I feel like we have a lot of momentum to get it in the next few weeks before it’s a difficult time for our farmers with their planting decisions.”
In addition to Harris, hemp THC has powerful foes, including retired Kentucky US Senator Mitch McConnell.
But it’s not just hemp farmers who need Congress to act.
Trump has promised CBD health care
The marijuana industry’s main focus over the past month has been the decriminalization of marijuana, which Trump ordered the Justice Department to complete in his December 18 executive order.
However, on the same day, Trump administration officials promised seniors that they would be able to get reimbursement from their health insurance providers — including Medicare — for non-alcoholic CBD treatments.
Reimbursements of up to $500 for CBD products that “meet local and state safety standards” could come as soon as April, said Mehmet Oz, director of the Centers for Medicare & Medicaid Services (CMMS).
A pet project of Howard Kessler, the Florida billionaire and Mar-a-Lago Club member who personally lobbied Trump on the issue, medical marijuana insurance coverage could significantly increase the bottom lines of cannabis users.
So far, CMMS has not released any other details about the program.
When will Congress move to cover CBD, save the THC found in hemp?
That’s because doing so would require “Congress to reconsider the classification of hemp-derived CBD to ensure that adults are able to access CBD products that they find beneficial,” Trump said during an Oval Office signing.
A spokesperson for CMMS did not respond to a request for comment MJBizDaily seeking more information on the CBD cashback program.
It’s unclear whether the delay in banning hemp THC, which critics like Miller say will also be the case for many CBD products, would be enough on its own for Medicare to cover the treatment.
Some Washington observers say federal agencies, including the US Department of Agriculture, which has been tasked with overseeing legal hemp since the 2018 Farm Bill, have also been reluctant to move forward without clear guidance from Congress.
Chris Roberts can be reached at chris.roberts@mjbizdaily.com.
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