Several major alcohol industry participants are backing a new bill in Congress that would exempt hemp beverages from a currently scheduled ban on THC products derived from the plant while enacting new provisions to tax and regulate the cannabis drinks like alcohol.

“Appropriately dosed hemp-derived beverages belong in a regulated adult beverage marketplace, not in a legal gray area,” Dawson Hobbs, executive vice president of government affairs for Wine & Spirits Wholesalers of America (WSWA), said in a press release supporting the new Beverage Regulatory Parity Act, introduced on Monday by Reps. Beth Van Duyne (R-TX) and Greg Landsman (D-OH).

“We thank Congresswoman Van Duyne and Congressman Landsman for their leadership advancing a framework that treats these products differently from other hemp products and builds on the alcohol regulatory system’s long record of consumer protection,” he said.

“The conversation has evolved beyond whether hemp-derived beverages should be regulated to how they should be regulated,” Dobbs said. “This legislation moves that conversation forward by following the long record of success in regulating alcohol through a federal and state partnership.”

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.

The Senate over the weekend, however, approved a funding bill that includes a provision to delay the effective date of the hemp product ban until December 11, with the support of the White House. Sen. Ted Budd (R-NC) had filed an amendment to strip that language and keep the prohibition on track as scheduled, but the body approved a motion to table the proposal in a vote of 61-32.

Hemp industry supporters believe the delay, if approved by the House and enacted into law, will give them more time to convince Congress to enact regulations for THC products as an alternative to prohibition.

Separately, the Beverage Alcohol Merchants Coalition (BAMCO)—a coalition of alcohol retailers—also endorsed the new hemp THC drinks bill.

“We applaud Representatives Van Duyne and Landsman for putting forward a regulatory framework for low-dose hemp beverages that aligns interests and addresses consumer demand,” Jonathan Grella, a spokesman for BAMCO, said in a press release.

“Their bill provides a path to a safe, regulated marketplace for low-dose hemp beverages while supporting Congress and the Administration in removing synthetic and inhalable products,” he said. “We look forward to working with Representatives Van Duyne and Landsman to build on the proven safeguards of the beverage alcohol system and get the regulation right.”

BAMCO’s members include Total Wine & More, BevMo! by Gopuff, ABC Fine Wine & Spirits, Spec’s Wine and Spirits & Finer Foods, as well as a group of hemp product wholesalers.

“This is exactly the kind of serious, bipartisan work needed to move the conversation from prohibition to responsible regulation,” Grella said. “Consumers deserve safe products, parents deserve strong protections for children, and responsible businesses deserve clear, enforceable rules. Our members are ready to be part of the solution.”

Under the new bill, adults over 21 could purchase and consume hemp THC beverages with up to 5 milligrams of total intoxicating THC per serving.

There would be a new federal tax on hemp drinks of 8 cents per milligram of intoxicating THC.

Hemp drinks would be regulated by the Treasury Department’s Tax and Trade Bureau (TTB), the Department of Health and Human Services (HHS) and the U.S. Department of Agriculture (USDA), with requirements for testing, packaging, labeling and serving and container sizes.

Legal beverages could only contain naturally-occurring cannabinoids that are cultivated and processed within the U.S.

Manufacturers, wholesales and sellers of hemp drinks would be required to obtain federal permits.

Companies could not sell multi-serving containers larger than 750 milliliters under the legislation.

The legislation further clarifies that states, Indian tribes and localities could set regulations that are “more stringent” than federal rules, but says that they could not prohibit the shipment or transportation of hemp beverages through their borders on the way to other jurisdictions.

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A coalition of alcohol retailers are cheering Senate leaders’ inclusion of provisions in a key funding bill to delay the planned federal recriminalization of hemp THC products—saying it provides industry supporters with more time to convince Congress to “establish a responsible federal framework for low-dose hemp-derived THC beverages.”

“We commend the Senate, the White House and congressional leadership for their commitment to finding a consumer-focused solution,” Jonathan Grella, a spokesperson for the Beverage Alcohol Merchants Coalition (BAMCO), said in a press relase. “The Senate continuing resolution creates an important opportunity to achieve meaningful hemp regulation.”

“While significant work remains, BAMCO is committed to working with policymakers to establish smart, safe regulation for low-dose hemp beverages that protects consumers and provides long-term regulatory certainty,” he said.

BAMCO’s members include Total Wine & More, BevMo! by Gopuff, ABC Fine Wine & Spirits, Spec’s Wine and Spirits & Finer Foods, as well as a group of hemp product wholesalers.

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.

On Sunday, leaders of the Senate Appropriations Committee released the text of a continuing resolution to extend funding for federal agencies through December 11, past the end of the current fiscal year on September 30.

Included in the legislation are provisions that will also delay the planned prohibition on most hemp products until December 11—although there is a carve-out that will allow the immediately recriminalization on November 12 of synthetic cannabinoids “that are not capable of being naturally produced by a Cannabis sativa L. plant.”

BAMCO supports incorporating hemp THC drinks into the existing three-tier system for alcoholic beverages, along with new requirements for testing, labeling, marketing and taxation in tandem with flexibility for state regulations.

“For too long, policymakers have been faced with a false choice between an unregulated marketplace and prohibition,” the group said on Monday following the release of the Senate proposal. “BAMCO has consistently advocated for a smarter path—one that protects consumers, preserves adult access to compliant low-dose hemp beverages, and provides states and responsible businesses with a clear, durable regulatory framework.”

Grella, the group’s spokesperson, said that “responsible retailers have earned the public’s trust by safely selling age-restricted products for generations.”

“Low-dose hemp beverages belong in that proven system, where consumers can have confidence that products are sold responsibly under clear and enforceable rules.,” he said.

Other alcohol industry groups such as Wine & Spirits Wholesalers of America have also backed regulating hemp products instead of prohibiting them.

Last month, the House of Representatives passed its own version of a continuing resolution to keep federal agencies funded into December, but it did not have any provisions to alter the planned hemp product ban. As such, if the Senate passes its new provision it would then still need approval by the other chamber before being sent to the president.

Meanwhile, a number of lawmakers from both chambers and both parties have filed or are circulating a growing number of bills to prevent the scheduled federal recriminalization of hemp THC drinks and other products later this year. Until now, none of those proposals have gained traction with congressional leaders.

For example, Rep. James Comer (R-KY), who chairs the House Oversight and Government Reform Committee, is circulating legislation that would delay a planned federal ban on hemp THC products and institute some regulations—including packaging requirements, testing rules and age limits.

Separately, Rep. Andy Barr (R-KY), filed a lengthier proposal to prevent the federal recriminalization of hemp THC products and put in place a number of regulations for manufacturing, labeling, sales and taxation of hemp-derived products, including an age limit of 21.

A press release from the congressman’s office claimed that the White House supports the legislation, which is cosponsored by Rep. Angie Craig (D-MN), but the administration has not specifically endorsed it despite generally calling for hemp regulations and backing a prior similar amendment filed by Barr.

Trump and White House officials have in recent weeks repeatedly pressed Congress to delay, alter or reverse the ban.

In a letter to House Speaker Mike Johnson (R-LA) last month, for example, White House Office of Management and Budget (OMB) Director Russell Vought said the Trump administration wants lawmakers to “ensure the fair treatment of hemp products”—specifically citing Barr’s earlier amendment to keep many hemp products legal while adding regulations and taxes.

The administration “welcomes the opportunity to work with the Congress to, at a minimum, update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products,” OMB separately said last month, “while preserving the Congress’s intent to restrict the sale of products that pose serious health risks.”

Also in April, the president himself urged congressional lawmakers to again redefine hemp to avoid recriminalization of full-spectrum CBD products.

“I am calling on Congress to update the Law to ensure that Americans can continue to access the full-spectrum CBD products they have come to rely on, and that help them, while preserving Congress’s intent to restrict the sale of products that pose Health risks,” Trump said in a Truth Social post.

“We must get this done RIGHT and FAST, especially for those who saw that CBD helps them,” he said. “Plus, I am told it will also help our GREAT FARMERS, who we love, and will always be there for.”

Industry advocates say that the law as enacted last year not only threatens to prohibit intoxicating and synthetic cannabinoid products but also stands to remove popular full-spectrum CBD products that many Americans use therapeutically from the market.

“ONE in FIVE adults used it in the past year, and many say it improved their chronic pain enormously,” the president said in his social media post, adding that hemp-derived CBD “has made a HUGE difference for so many people.”

He also referenced a new initiative the administration launched in April to cover up to $500 worth of hemp-derived products each year for eligible Medicare patients. The program being implemented by the Centers for Medicare & Medicaid Services (CMS) focuses largely on CBD but also allows products to have up to 3 milligrams of total THC per serving. A federal judge granted the government’s motion to dismiss marijuana legalization opponents’ lawsuit challenging the initiative, but that is being appealed.

“In December, I signed a very important Executive Order calling for Research and Innovation for Hemp-derived CBD,” Trump said. “Our wonderful Dr. Mehmet Oz moved fast to follow the directive in the Executive Order, and launched a model for some Seniors earlier this month. But more must be done!”

“Please get it done, and SOON,” the president said in reference to a congressional fix for the broad recriminalization set to take effect in November. “Thank you for your attention to this matter!”

The Wine & Spirits Wholesalers of America (WSWA), an alcohol industry trade association issued praise for Barr’s bipartisan hemp regulation bill, but said the measure’s tax provisions require “continued discussion.”

Hemp policy observers expect to see a Senate companion bill to Barr’s proposal filed soon, likely from Sens. Tim Sheehy (R-MT) and Amy Klobuchar (D-MN).

Sheehy recently cited hemp legislation as an area where Republicans and Democrats can work together in an otherwise “hyperpartisan time.”

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Meanwhile, a new poll from NuggMD found that most cannabis consumers say that state-level hemp product bans that lawmakers are enacting in line with the planned federal recriminalization move are causing them to shift their purchases toward licensed marijuana businesses.

The National Restaurant Association recently sent a letter urging congressional leaders to delay the federal recriminalization of hemp THC beverages and replace it with a regulatory framework that “ensures consumer safety while meeting growing market demand” for the products as an alternative to alcohol.

Major retailer Target, meanwhile, recently moved to expand its sales of hemp THC drinks into more states.

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