By: Grace Yarrow
As seen in Politico Pro
Senate Republicans are looking to pressure Democrats into advancing a package of some full-year spending bills that would include funding for USDA and FDA. But a months-long fight over a regulatory “loophole” for hemp products is emerging as an impediment.
Sen. Mitch McConnell (R-Ky.), who successfully pushed to federally legalize hemp in the 2018 farm bill, and Rep. Andy Harris (R-Md.), who chairs the House Appropriations Ag-FDA subcommittee, are pushing Republican leaders to include language that would crack down on the burgeoning hemp industry.
The farm bill loophole spurred an industry boom that has benefited farmers growing hemp used for intoxicating products that aren’t subject to the same regulations and taxes as marijuana.
Sen. Rand Paul (R-Ky.) has placed a hold on the minibus, saying he’ll object to moving forward with the package, and people familiar with the behind-the-scenes talks say he is trying to use any leverage to keep a hemp crackdown out of the minibus.
“We’re doing our best to try to negotiate a compromise,” Paul told POLITICO in a brief interview. “But the numbers that have been floated so far would completely eliminate the industry.”
Paul has introduced an amendment to the minibus that would instruct USDA to conduct an 18-month study on how to regulate hemp-derived products instead of passing language that would crack down on small levels of intoxicating THC in some hemp products.
Hemp industry leaders are taking their concerns to GOP leadership in both chambers, as the negotiations rise to the level of Speaker Mike Johnson and Majority Leader John Thune to figure out. Leaders are becoming frustrated with Paul and the overall hemp fight holding back movement on the plans, according to two people familiar with the talks.
Thune told POLITICO in a brief interview that he’s optimistic the disagreement can be overcome.
“We can get that resolved,” Thune said. “[Paul’s hold] is a fixable issue.” He added that the “real problem” holding up funding talks is Senate Democrats who aren’t yet committed to working with Republicans to pass the minibus as the government shutdown continues.
Senate Appropriations Chair Susan Collins (R-Maine) also placed most of the blame on Democrats when asked about Paul’s hold on the funding package.
Sen. John Hoeven (R-N.D.), who chairs the Senate Appropriations subcommittee responsible for agriculture funding, told POLITICO earlier this month that the hemp disagreements would be resolved swiftly.
“Nothing happens as fast as we’d like,” Hoeven said this week. “But as you can see, we’re going to continue to push to get back to that appropriations process. We’ll resolve it, it’s just taking more work than expected.”
Jordain Carney and Meredith Lee Hill contributed to this report.