Shutdown Deal Contains Hidden Blow To Beloved New York Industry

A hidden addition to the shutdown bill could destroy a booming industry in New York, putting thousands of small businesses at risk statewide.

The longest government shutdown in U.S. history is over. But a last-second addition to the spending bill could wipe out New York’s booming hemp market.

An addition tucked into the latest government-funding bill would criminalize many hemp-derived THC products, reversing a legal framework established under the 2018 Farm Bill.

The bill, passed to end the government shutdown, bans most hemp-THC products. This includes Delta-8 and THCA, by redefining what qualifies as legal hemp.

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Until now, hemp products containing low-levels of THC had been broadly legal under federal law, opening doors for both farmers and retailers in states like New York to tap into this booming sector.

The new ban would bar “intoxicating hemp-derived products,” including popular items like delta-8 THC edibles and vapes, many of which are sold in stores and online across the Hudson Valley and beyond.

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The change closes what lawmakers called a “loophole” in the 2018 Farm Bill.

Experts say the change could destroy up to 95 percent of the $28 billion hemp industry and force thousands of small businesses to close.

Democratic Senator Jeff Merkley of Oregon said the move would effectively "wipe out an industry that we have spent more than a decade creating."

The ban takes effect next November. This will give shops across the Hudson Valley and state one year to adjust.

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