Hidden Federal THC Ban in Spending Bill Ignites Backlash; Hemp Industry Forecasts Widespread Job Losses

Los Angeles, California Nov 17, 2025 – A rapidly forming alliance of lawyers, business leaders, and hemp industry proponents is raising concerns after Congress embedded a far-reaching federal THC prohibition within the emergency spending legislation used to reopen the government. Legal authorities caution that the measure could collapse an industry, eliminate over 300,000 American jobs, and deprive states of their constitutional authority to regulate hemp.

“This was a clandestine prohibition inserted into a crisis bill. That is not how policy should be made. It’s a form of coercion,” stated Bridgett G. Brumbaugh, Esq., a former prosecutor and advocate for small businesses, privacy, and regulated markets.

Brumbaugh, who advises clients in the hemp, cannabis, and CPG industries, noted that the unexpected prohibition has already prompted legal assessments nationwide.

HIDDEN POLICY, SIGNIFICANT REPERCUSSIONS

The law prohibits almost all hemp-derived cannabinoids, including , , THCA, HHC, and other intoxicating variations, even though they are legal in many states under the 2018 Farm Bill.

Key national consequences include:

• Economic Shock: Over $28 billion in revenue and 300,000 jobs are immediately at risk.

• State Override: , Kentucky, Tennessee, Florida, Colorado, and other states now face federal preemption, despite having established state-level regulatory frameworks.

• Zero Transparency: There were no hearings, scientific evaluations, or stakeholder testimonies.

• Industry Collapse: Analysts are warning that the ban represents an “extinction-level event“ for thousands of small to medium-sized businesses.

“Cannabis policy shouldn’t be determined by last-minute amendments to emergency spending bills. The American people deserve open discussion, scientific evidence, and economic impact assessments, rather than political shortcuts,” Brumbaugh commented.

LEGAL & INDUSTRY RESPONSE IN PROGRESS

Attorneys in several states are preparing legal challenges based on:

• Federal encroachment on state-regulated commerce

• Improper legislative procedures

• Economic harm to small businesses and farmers

• Potential Fifth Amendment issues related to the seizure of property

• The absence of scientific or regulatory justification

Business associations and state lawmakers are already coordinating responses aimed at restoring state authority.

“We are ready to defend the entrepreneurs, farmers, processors, and retailers who have lawfully developed this industry. This isn’t about THC; it’s about government transparency, economic freedom, and basic fairness,” Brumbaugh added.

CALL TO ACTION

Brumbaugh is encouraging affected businesses, trade organizations, and state officials to join a national coalition focused on:

• Immediate federal litigation

• Legislative revisions

• Documentation of economic impact

• United industry advocacy

• Protecting state-level hemp programs

For legal analysis, coalition inquiries, or interviews:
Bridgett G. Brumbaugh
Attorney – National Business, Privacy & Regulatory Compliance