October 21, 2026
cannabis-legalization-in-texas

Photo: Herb CEO

Senate Hemp THC Ban: What Texas Businesses Need to Know

The Texas hemp industry just narrowly escaped a state-level ban earlier this year, only to face an even bigger threat from Washington. On Monday night, the U.S. Senate approved language that would effectively outlaw nearly all THC-containing hemp products nationwide—and thousands of Texas businesses are now scrambling to understand what this means for their future.

FOX 4 Dallas – Fort Worth

What Just Happened?

As part of a spending deal to end the federal government shutdown, the Senate passed provisions that dramatically redefine what counts as legal “hemp” under federal law. The new definition would cap total THC content at just 0.4 milligrams per container—a threshold so low that it would eliminate virtually all hemp-derived THC products currently on the market.

The bill passed despite strong opposition from Kentucky Senator Rand Paul, who warned that “the numbers put forward in this bill will eliminate 100% of the hemp products in our country.” His attempt to strip the language from the spending bill was defeated 76-24.

Texas’s own senators split on the issue: John Cornyn voted to preserve the ban, while Ted Cruz opposed it, advocating for a state-by-state approach instead.

Why Texas Has So Much at Stake

Texas isn’t just another player in the hemp market—it’s the biggest stage. As the largest state without a recreational marijuana program, Texas has become the most lucrative market for hemp products, which offer a legal alternative to traditional cannabis. The Texas Farm Bureau estimates that nearly 5,000 acres of hemp were planted in Texas in 2024, a sharp increase from previous years.

This comes at a particularly painful time for Texas hemp businesses. Just months ago, the industry successfully fought off an all-out ban proposed by Lt. Gov. Dan Patrick during the state legislative session.

Governor Greg Abbott vetoed that ban, citing legal and business concerns. Now, federal lawmakers are poised to accomplish what Texas legislators couldn’t.

What Would Change?

If the bill becomes law—and President Trump has indicated he supports the hemp ban language—here’s what would happen:

The ban would eliminate:

  • THCA flower (often sold as a legal alternative to marijuana)
  • Delta-8 THC products (popular edibles and vapes)
  • Synthetic hemp-derived cannabinoids like HHC and THC-P
  • Most hemp-derived beverages currently sold at retailers, bars, and restaurants
  • CBD products that contain even trace amounts of THC above the 0.4 milligram threshold

The timeline: The law would take effect one year after being signed, giving businesses some time to adapt—or prepare to shut down.

The Economic Impact

Industry advocates paint a dire picture. The U.S. Hemp Roundtable estimates that hemp-derived THC has become a $28.4 billion market nationwide, employing hundreds of thousands of workers. For Texas specifically, this means:

  • Thousands of retail stores—from dedicated hemp shops to gas stations and convenience stores—could lose their entire product inventory
  • Manufacturers and distributors based in Texas that sell nationwide would face immediate business disruption
  • Farmers who invested in hemp cultivation may need to destroy crops and start over
  • Jobs across the supply chain, from farm to retail, would be at risk

One North Carolina store owner estimated that 99% of his products would become illegal under the new rules. Texas businesses face the same reality.

What’s Next?

The spending bill now moves to the House of Representatives, where a vote could happen as soon as today. If it passes the House and is signed by President Trump, the hemp industry will have one year before the ban takes effect.

Industry advocates aren’t giving up yet. With a one-year implementation timeline, there’s still time to push for legislative changes that could save the industry. Some are looking toward 2026, hoping to pass new legislation that would block or modify the ban’s implementation.

For Texas hemp businesses, the immediate priority is clear: understand your exposure, explore your options, and prepare for significant changes ahead. Whether you’re a farmer, manufacturer, distributor, or retailer, this federal action could fundamentally reshape your business model—or eliminate it entirely.

The irony isn’t lost on industry observers: an industry that was built on the legalization framework of the 2018 Farm Bill may now be destroyed by its authors’ claim that legalization was never their intent.



Even if the U.S. House of Representatives votes to end the 43-day-old federal government shutdown today, delays and flight cancellations at Austin-Bergstrom International Airport are likely to continue for a some time.

✈️ Impact of the Government Shutdown on Airports

Even as the federal government shutdown seems to be winding down, the operational impacts on airports nationwide, including ABIA, are expected to persist.

Lingering Effects at AUS

  • AUS reported six ground delays throughout the shutdown period.
  • Airport officials warn that resolving the issues caused by the shutdown will require more than an overnight fix.
  • The airport is currently still operating under the conditions and orders established by the Federal Aviation Administration (FAA) during the shutdown.

Outlook for Resumption of Normal Operations

U.S. Transportation Director Sean Duffy suggests that normal air travel operations could resume by Thanksgiving.

KHOU-TV


Austin firefighters are investigating an early morning house fire in east Austin.

The fire is now extinguished. One person and several cats managed to escape. AFD says that one firefighter was injured with minor burns and was taken to the hospital by Austin-Travis County EMS.

Earlier Tuesday evening, firefighters battled a heavy fire at a property on Union Chapel Road, near 1209 and 71, in Cedar Creek.

Also on Tuesday, Williamson County authorities fought a grass fire in the northern part of the county.

CR 143 was closed at its intersection with Interstate 35 for a while. No information was provided on how many acres burned.



One person suffered serious injuries after their rig rolled over on State Highway 130 Tuesday afternoon.

A multiple-vehicle wreck on North Lamar Tuesday morning saw individuals fleeing the scene of the accident.

Video: Reporte Austin

Finally, two southbound lanes of I-35 were briefly closed Tuesday at Riverside Drive due to a crash involving four vehicles, including two cargo trucks.



The University of Texas at Austin has until next week to respond to a controversial compact sent by the Trump Administration in early October, and some students are very opposed to the idea. Under the proposed deal, the White House would offer UT greater access to federal funds in exchange for implementing policies outlined by the administration. Several schools have already rejected the offer.

PODCAST

Hear two seniors’ take on how the proposed compact could reshape academic freedom, student life, and the broader political climate in Austin.

(Episode from November 11, 2025)



Kyle voters will head back to the polls next month to decide who should be the city’s next mayor.

KXAN-TV


Several amenities at Leander‘s Lakewood Park are now unusable after the Upper Brushy Creek Water Control and Improvement District drained its reservoir. According to city officials, the district, which possesses sole authority over water levels in the park’s lake, started the draining process in September.



The City of Austin’s 2025 Veterans Day Parade was held yesterday along Congress Avenue.

Photos and videos: Frank Strovel III


WEATHER


TUESDAY’S HIGH / LOW TEMPERATURES

AUSTIN-BERGSTROM INTERNATIONAL AIRPORT

CAMP MABRY



5-DAY FORECAST / AUSTIN, TEXAS

AccuWeather/Austin

From the Austin American-Statesman.




The families of six child victims of the deadly Texas Hill Country flooding have filed a joint lawsuit against Camp Mystic for their handling of the tragic situation. 

CBS Mornings
KENS-TV


Impending Healthcare Deadline: ACA Subsidies Set to Expire

As the federal government shutdown debate continues, another critical deadline is looming, one that poses significant consequences for health care coverage nationwide.

Key tax credits integral to the Affordable Care Act (ACA), often referred to as “Obamacare,” are scheduled to expire. This impending lapse is injecting major uncertainty for the millions of Americans who depend on these subsidies to make their health plans affordable.

CBS Austin

Texas Enrollment at Risk

Texas, in particular, stands to be heavily affected. The state has experienced the fastest ACA enrollment growth in the country, with enrollment tripling since 2020. Currently, nearly 4 million Texans are covered through the program.

Cost Shock Awaits Millions

If these enhanced credits are allowed to expire, the financial impact will be dramatic. According to new data from KFF (a nonpartisan health policy research organization), premiums are projected to more than double next year.

  • Current Average Premium (2025): Approximately $888
  • Projected Average Premium (2026): Over $1,900

This massive potential increase will place substantial financial pressure on families across the country, particularly those in areas like Central Texas.



The Bexar County Medical Examiner’s Office ruled that Republican congressman Tony Gonzales‘s staffer who passed away in Uvalde in September died of self-immolation, meaning she intentionally set herself on fire. (KVUE-TV)

KSAT-TV


Texas Attorney General Ken Paxton is suing Harris County for allocating county funds to programs that help undocumented people get access to legal support. 

Texas Scorecard


Meanwhile, Abbott’s list of competitors continues to grow.

Former U.S. Rep. Chris Bell is the latest Democratic candidate to join the 2026 race for Texas governor, a re-run after he lost his bid for the state’s highest office two decades ago. (Texas Tribune)



A Dallas County judge has ruled that a lawsuit filed against Gateway Church in Southlake​ by a survivor of sexual assault can move forward.

CBS Texas



Kate Rogers joins TribCast to discuss her decision to resign from leading the organization that oversees the Alamo historic site amid political pressure.

The Texas Politics Project Poll team – Daron Shaw, James Henson, and Joshua Blank – discuss what their latest poll tells us about the current Texas landscape for the 2026 election.

(Episode from October 30, 2025)



The third rabies case in a fox was confirmed last week after it was captured in the 24000 block of Invitation Oak, which is located in north Bexar County.

KSAT-TV


There was no winning ticket for last night’s huge MegaMillions jackpot, meaning it will rise to close to $1 BILLION for Friday night’s drawing.



SPORTS


COLLEGE BASKETBALL: The Texas Longhorns are home tonight.

Texas Tech lost their first game of the season last night.

Andrej Stojakovic scored 23 points and blocked a potential tying 3-pointer in the final seconds as No. 14 Illinois defeated No. 11 Texas Tech 81-77 on Tuesday night. (Yahoo! Sports)

FOX Sports

Top-ranked Houston plays tonight at home.



NBA: The scoreboard was quiet last night for San Antonio, Dallas and Houston, but all three are in action tonight.

The Mavericks fired General Manager Nico Harrison and Dallas fans are jubilent.

FOX 4 Dallas – Fort Worth


NHL: A nice comeback win in overtime last night for the Dallas Stars.

Dallas scored three straight goals and Roope Hintz scored at 3:04 of overtime to lift the Stars over the Ottawa Senators 3-2 on Tuesday night. (Yahoo! Sports)

NHL

ON THE SCHEDULE

STANDINGS



COLLEGE FOOTBALL: Texas continues preparations for Georgia.

How Texas Can UPSET Georgia in Athens | LIVE | 11/12/25

Texas Sports Unfiltered



The latest episode of The Daytipper unearths ancient history at the Gault Archaeological Site in Texas. Discover artifacts over 16,000 years old, predating previously established timelines. This site challenges existing knowledge of early human presence in North America.

The Daytripper via YouTu

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