TEXAS — The passing of the funding bill that reopened the federal government after a 43-day shutdown comes with a few ripple effects to a large industry here in Texas.

What You Need To Know

The federal spending bill effectively bans most hemp-derived THC products across the country and within Texas, placing a 0.4 milligrams total THC cap per container

In a statement from the Texas Hemp Business Council, the industry coalition vows to pursue all options to overturn the new restrictions

The organization also claimed the ban will hurt farmers, force small businesses to close and push consumers and veterans to illegal markets

State leaders are divided on the decision, with some fully backing it and others not

The federal spending bill effectively bans most hemp-derived THC products across the country and within Texas, placing a 0.4 milligrams total THC cap per container.

In a statement from the Texas Hemp Business Council, the industry coalition vows to pursue all options to overturn the new restrictions.

“We are deeply disappointed by Congress’ passage of H.R. 5371, the Continuing Appropriations and Extensions Act, 2026, with restrictive hemp provisions that will eliminate the nation’s $28 billion hemp economy,” the organization said.

The organization also claimed the ban will hurt farmers, force small businesses to close and push consumers and veterans to illegal markets.

Owner of Leaf & Legends Dispensary, Nick Mortillaro, says the federal ban undoes all the past work that was done to regulate the hemp industry in Texas.

“We’ve worked with the governor’s office to put out common-sense regulations. … We’re working now with the Texas Alcoholic Beverage Commission,” he said.

Mortillaro is just one of many business owners who have been on the front lines of the THC fight, having pushed through the Texas Legislature’s regular and special sessions that almost wiped it out.

“We just went through this fight in Texas all summer long,” Mortillaro said. “We were pleading with our Texas lawmakers to not ban hemp for veterans, farmers and consumers.”

State leaders are divided on the decision, with some fully backing it and others not.

Lt. Gov. Dan Parick expressed his support. In a statement, he says it has been a priority for him, and he appreciates Congress addressing the important issue at the national level.

UPDATE: The U.S. Senate just passed HR5371 to reopen the Federal Government. Notably, the resolution prioritized a ban on intoxicating hemp THC, similar to the bill passed by the Texas Legislature.

In the midst of the Federal Government shutdown, the U.S. Senate felt so…

— Dan Patrick (@DanPatrick) November 11, 2025

Then we have U.S. Sen. Ted Cruz, R-Texas, who has voiced his opposition to this ban on the national level. In a post to social media, he says, he has “long believed that the regulation of hemp and marijuana products should rest with each individual state.”

I have long believed that the regulation of hemp and marijuana products should rest with each individual state. Reasonable minds can disagree, and a blanket federal prohibition disempowers the voters in each of the fifty States.

A one-size-fits-all federal standard will… https://t.co/iJTSVSqtdg

— Senator Ted Cruz (@SenTedCruz) November 11, 2025

As many transition away from hemp and THC, Leaf & Legend has announced it will close its doors at its dispensary immediately.