January Hemp Round-up
Foley Hoag top-lines the landscape.
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Federal Hemp Update
In the past two weeks, two bills have been filed in Congress seeking to delay the implementation of the intoxicating hemp product ban that is scheduled to take effect in November.
On January 15, 2026, Sens. Amy Klobuchar, Rand Paul, and Jeff Merkley, introduced legislation to delay the forthcoming federal prohibition by two years from its current effective date of Nov. 13, 2026.
This legislation mirrors legislation introduced in the House by Representative Jim Baird and others just two days earlier on January 13, 2026. In a press release accompanying introduction of the legislation, Rep. Baird stated that:
“Congress created a regulatory environment in the 2018 Farm Bill that allowed for certain investments, and farmers were operating within this environment. The hemp provision included in the Continuing Resolution and Appropriations bills passed in November 2025 disrupted planting decisions that had already been made.
Congress should not have passed such a sweeping policy change that upends a growing industry. Instead, Congress should have given farmers more time, creating a more stable environment for farmers to modify their future planting decisions. I am proud to introduce this legislation to ensure farmers have predictability and sufficient time to adjust to new laws that affect their livelihood.”
Congressman Baird Introduces Legislation to Support Hemp Farmers
Ohio’s Citizen-Led Ballot Initiative
The citizen-led ballot initiative to repeal Senate Bill 56 (signed into law in December and scheduled to take effect in March), which is poised to implement significant changes to the cannabis and hemp markets in the state and ban the sale of hemp beverages outside of licensed cannabis dispensaries hit a speedbump on January 13, 2026, when Attorney General Dave Yost rejected the ballot petition summary that was submitted to his office.
According to Attorney General Yost, the “problem with this summary was not only were there some statements were incorrect, there was at least one that was flat out wrong.” The proponents of the ballot initiative have vowed to fix the issues cited by the Attorney General and push forward with the ballot initiative.
Ballot Initiative to Repeal Ohio’s New Marijuana Law Hits Snag
Texas’s Permanent Regulations Finalized by Texas Alcoholic Beverage Commission
On January 20, 2026, the Texas Alcoholic Beverage Commission finalized new permanent regulations for consumable hemp products, which replace the emergency regulations that were promulgated in September of 2025 and took effect October 1, 2025.
The permanent rules (which were subject to public comments and a public hearing on December 11, 2025) prohibit the sale of consumable hemp products by TABC license holders to people under 21 and require ID checks on all sales.
Debate to Likely Continue Following the Alcohol Commission’s Permanent Regulations Consensus
Wyld, a leading cannabis edibles brand, recently announced the acquisition of Grön, a women-led edibles company. Both companies were founded and are based in Oregon. The combination is designed to take advantage of distribution synergies through an expanded edibles product offering while distinctly maintaining both the Wyld and Grön brand identities. The transaction is expected to close in Q1 2026, subject to regulatory approvals.
This month, millions of Americans are practicing Dry January, giving up alcohol entirely. Others are doing Damp January, cutting back on their alcohol consumption. And still others are experimenting with Cali Sober, looking for ways to get buzzed without the booze and the next-morning hangover. For liquor manufacturers and retailers, January is a bleak month. For the last three years, alcoholic beverages not only have consistently lost ground to nonalcoholic drinks in January, but have rebounded more slowly, “signaling a sustained lifestyle shift rather than a temporary post-holiday reset,” the research firm Numerator wrote this month. But sales of mocktails, seltzers and teas containing tetrahydrocannabinol, or THC, have surged since their introduction a few years ago. Amid increased consumer demand and legalization of the cannabis-derived drinks, major retailers like Target, Sprouts and Circle K and national liquor stores are putting the beverages on their shelves.
Earlier this month, Sprouts Farmers Market started selling hemp-THC beverages at about 115 of its grocery stores in Texas and Florida. Sprouts said eight hemp-THC beverage brands will be sold in the stores, including Cann, Delta, High Pour, Magic Cactus, Nectar, Wynk, Howdy (Texas only), and Nowadays (Florida only). The move comes less than two months after President Trump signed a federal spending bill that would effectively ban almost all hemp-THC products starting in November 2026.
Chicago’s United Center is stepping into new territory for live events, becoming the first major U.S. arena to offer cannabis drinks at its concessions. The arena — home to the NBA’s Chicago Bulls and NHL’s Chicago Blackhawks — announced Tuesday a multiyear partnership with Rythm, a hemp-derived THC beverage company that makes Rythm and Señorita brand drinks, to sell the cans at concerts and live events.
Late last month, the Texas Department of State Health Services published a set of proposed rules to tighten regulations on consumable hemp products, including establishing a minimum purchasing age of 21, along with age verification requirements and mandatory product recalls, which are measures that the hemp industry supports. However, two of the proposed rules that have caused the most heartburn among advocates and businesses are new testing requirements and increases in licensing fees. Manufacturer licenses would increase from $250 to $25,000 per facility per year and retail registrations from $150 to $20,000 per location per year, an increase of over 13,000%.
Congressional leadership removed language from a spending bill released last week that would have given hemp THC a temporary reprieve ahead of a looming ban. In addition to worsening uncertainty for hemp farmers and operators on the eve of planting season, the setback in Washington threatens to delay when health insurance will cover CBD treatments, as President Donald Trump promised last month, industry lobbyists said.
Chicago City Council voted Wednesday to outlaw a broad array of hemp-derived products months before a federal ban is set to take effect, kneecapping a lucrative industry that has buoyed many Chicago businesses — but sometimes put unregulated intoxicants within reach of minors. An exception allowing for hemp beverages, hemp-infused pet products and other CBD offerings led to a 32-16 vote that left the question of whether Mayor Brandon Johnson would veto the ban championed by 13th Ward Ald. Marty Quinn of the Southwest Side.
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Foley Hoag is an award-winning, mid-sized, international law firm that focuses on innovative industries and high-stakes litigation. Our Hemp & THC Products group is comprised of attorneys across practice groups, spanning multiple offices with unique insight and experience to assist businesses intersecting with this ever-evolving industry. We maintain a 50-state analysis of all state laws, regulations, executive orders, attorney general enforcement, subregulatory guidance, and court decisions that ensure businesses can maintain real-time compliance with the ever-changing regulatory landscape.
We also represent both buyers and sellers of hemp businesses, as well as investors. We place emphasis on commercial contracts that are fully protective and customized to account for the changing nature of regulation in this novel area. Our practice includes full-time cannabis and hemp regulatory specialists, early stage and venture counsel, FDA regulatory experts, IP and commercial contract and licensing attorneys, all of whom advise and strategize with businesses as to the risks inherent in working with the hemp and THC products industry. We have been among the first national law firms to counsel clients in both the cannabis and hemp spaces.
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