Kentucky’s hemp industry is now facing a major threat from language tucked into the U.S. Senate’s latest government funding bill.
The provision, intended to “help” reopen the federal government according to Senate Republicans, would effectively ban all ingestible hemp products containing any detectable amount of THC, including products from Cornbread Hemp, one of the leading THC product makers in Kentucky.
The provision in the government funding bill includes non-intoxicating, full-spectrum CBD oils, gummies and seltzers—products currently legal under the 2018 Farm Bill and widely sold across the Commonwealth.
Under the proposed measure from Senate Republicans including Kentucky’s own Mitch McConnell (R), hemp-derived items for consumption that contain even trace levels of THC or THC-like cannabinoids would be considered “Schedule 1” drugs, and punishable by a felony.
For producers like Jim Higdon, co-founder of Cornbread Hemp, that means nearly every product his company makes could be banned overnight.
“When the president signs this bill, we have 365 days until all hemp products — including CBD oils — become Schedule I narcotics,” he said.
The proposal has the backing of Senator McConnell, who says it’s designed to close loopholes in the 2018 farm bill.
“The language included in (Monday’s) bill preserves the legitimate hemp industry while addressing the rise of intoxicating and synthetic THC products,” he said. “Industrial hemp and CBD will remain legal for industrial applications — such as seed, stock, fiber, grain oil — or used in drug trials, federally authorized research, or research at an institution of higher education, such as the University of Kentucky College of Agriculture’s Industrial Hemp Research Program.”
However, Kentucky Hemp Association condemned the measure, arguing that McConnell’s action could harm farmers and small businesses.
“Over the weekend, Senator McConnell quietly inserted language into a federal bill that would criminalize Kentucky farmers, small businesses, and millions of responsible consumers,” the organization said. “While he claims his intent is to ‘protect the kids,’ Kentucky has already taken decisive, bipartisan action to address legitimate market concerns through common-sense policies like uniform age restrictions, product testing, labeling standards, and manufacturing safeguards.”
Senator Rand Paul (R) has pushed back against the measure, filing a one-page provision that would strike the hemp language from the bill. His amendment was blocked in a 76–24 vote, with Paul and Senator Ted Cruz of Texas the only Republicans voting in favor of removing it.
“Dr. Paul is working to ensure that the final government funding legislation does not unintentionally harm Kentucky’s hemp industry, which supports thousands of jobs across the Commonwealth,” his office said in a statement to WDRB News.
“He has asked for a single, straightforward vote on an amendment to remove language in the current package that would restrict the production and sale of certain hemp-derived products and result in significant economic harm to farmers and small businesses in Kentucky. Dr. Paul remains committed to reopening the government as soon as possible and ensuring that Kentucky’s agricultural economy is not adversely impacted in the process.”
The bill has passed the Senate and now heads to the House. If approved there and signed by President Trump with the hemp restrictions intact, producers would have 365 days before the ban takes effect.
“To stop this insane outcome, we must pass a bill through the House Energy & Commerce Committee immediately,” said Cornbread Hemp Founder Jim Higdon. “Our farming partners require certainly to plan next year’s crop. Without a clear signal from E&C chairman Brett Guthrie, all hope for a future of rational cannabis laws in this country will vanish.”
This article appears in Nov. 1-30, 2025.