What a federal ban on THC-infused drinks and snacks could mean for the hemp industry

MINNEAPOLIS (AP) — The production lines at Indeed Brewing moved quickly, the cans filling not with beer, but with THC-infused seltzer. The product, which features the compound that gets cannabis users high, has been a lifeline at Indeed and other craft breweries as alcohol sales have fallen in recent years.

But that boom looks set to come to a crashing halt. Buried in the bill that ended the federal government shutdown this month was a provision to ban those drinks, along with other impairing beverages and snacks made from hemp, which have proliferated across the country in recent years. Now the $24 billion hemp industry is scrambling to save itself before the provision takes effect in November 2026.

“It’s a big deal," said Ryan Bandy, Indeed's chief business officer. "It would be a mess for our breweries, for our industry, and obviously for a lot of people who like these things.”

Here's what to know about the looming ban on impairing products derived from hemp.

Marijuana and hemp are the same species. Marijuana is cultivated for high levels of THC in its flowers. Low-THC hemp is grown for its sturdy fibers, food or wellness products. “Rope, not dope” was long the motto of farmers who supported legalizing hemp.

After states began legalizing marijuana for adult use over a decade ago, hemp advocates saw an opening at the federal level. As part of the 2018 farm bill, Congress legalized the cultivation of industrial hemp to give farmers, including in Republican Sen. Mitch McConnell's home state of Kentucky, a new cash crop.

But the way that law defined hemp — as having less than 0.3% of a specific type of THC, called delta-9 — opened a huge loophole. Beverages or bags of snacks could meet that threshold and still contain more than enough THC to get people high. Businesses could further exploit the law by extracting a non-impairing compound, called CBD, and chemically changing it into other types of impairing THC, such as delta-8 or delta-10.

The result? Vape oil, gummy candies, chips, cookies, sodas and other unregulated, untested products laden with hemp-derived THC spread around the country. In many places, they have been available at gas stations or convenience stores, even to teens. In legal marijuana states, they undercut heavily taxed and regulated products. In others, they evaded the prohibition on recreational use of weed.

Some states, including Indiana, have reported spikes in calls to poison-control centers for pediatric exposure to THC.

Dozens of states have since taken steps to regulate or ban impairing hemp products. In October, Democratic California Gov. Gavin Newsom signed a bill banning the sale of intoxicating hemp products outside the state's legal marijuana system.

Texas, which has a massive hemp market, is moving to regulate sales of impairing hemp, such as by restricting them to those over 21. In Nebraska, lawmakers have instead considered a bill to criminalize the sale and possession of products containing hemp-based THC.

Washington state adopted a program to regulate hemp growing. But the number of licensed growers has cratered since the state banned intoxicating hemp products outside of the regulated cannabis market in 2023. Five years ago, there were 220, said Trecia Ehrlich, cannabis program manager with the state agriculture department. This year, there were 42, and with a federal ban looming, she expects that number to drop by about half next year.

Minnesota made infused beverages and foods legal in 2022 for people 21 and older. The products, which must be derived from legally certified hemp, have become so popular that Target is now offering THC drinks at some of its stores in the state.

They've also been a boon to liquor stores and to small Minneapolis brewers like Indeed, where THC drinks make up close to one-quarter of the business, Bandy said. At Bauhaus Brew Labs, a few blocks away, THC drinks account for 26% of their revenues from distributed products and 11% of revenues at the brewery’s taproom.

None of that was what McConnell intended when he helped craft the 2018 farm bill. He finally closed the loophole by inserting a federal hemp THC ban in the measure to end the 43-day federal government shutdown, approved by the Senate on Nov. 10.

“It will keep these dangerous products out of the hands of children, while preserving the hemp industry for farmers,” McConnell said. “Industrial hemp and CBD will remain legal for industrial applications.”

Some in the legal marijuana industry celebrated, as the ban would end what they consider unfair competition.

They were joined by prohibitionists. “There’s really no good argument for allowing these dangerous products to be sold in our country,” said Kevin Sabet, president and CEO of Smart Approaches to Marijuana.

But the ban doesn't take effect for a year. That has given the industry hope that there is still time to pass regulations that will improve the hemp THC industry — such as by banning synthetically derived THC, requiring age restrictions on sales, and prohibiting marketing to children — rather than eradicate it.

"We are very hopeful that cooler heads will prevail," said Jonathan Miller, general counsel of the industry group U.S. Hemp Roundtable. “If they really thought there was a health emergency, there would be no year-long period.”

The federal ban would jeopardize more than 300,000 jobs while costing states $1.5 billion in lost tax money, the group says.

Drew Hurst, president and chief operating officer at Bauhaus Brew Labs, has no doubt his company would be among the casualties.

“If this goes through as written currently, I don’t see a way at all that Bauhaus could stay in business," Hurst said.

A number of lawmakers say they will push for regulation of the hemp THC industry. Kentucky's second senator, Republican Rand Paul, introduced an amendment to strip McConnell's hemp language from the crucial government-funding bill, but it failed on a lopsided 76-24 vote.

Minnesota's Democratic U.S. senators, Amy Klobuchar and Tina Smith, are among those strategizing to save the industry. Klobuchar noted at a recent news conference that the ban was inserted into the unrelated shutdown bill without a hearing. She suggested the federal government could allow states to develop their own regulatory frameworks, or that Minnesota's strict regulations could be used as a national model.

Kevin Hilliard, co-founder of Insight Brewing in Minneapolis, said the hemp industry needs a solution before planting time next spring.

"If a farmer has uncertainty, they’re not going to plant,” Hilliard said.

Johnson reported from Seattle. AP congressional reporter Kevin Freking contributed from Washington, D.C.

Drew Hurst, president and chief operating officer of Bauhaus Brew Labs in Minneapolis, stands outside a cooler for cans of seltzer containing THC, the active ingredient in marijuana, in his brewery's taproom on Thursday, Nov. 20, 2025. (AP Photo/Steve Karnowski)

Cans of seltzer containing THC, the active ingredient in marijuana, are shown in a cooler at the Indeed Brewery taproom in Minneapolis on Thursday, Nov. 20, 2025. (AP Photo/Steve Karnowski)

Ryan Bandy, chief business officer at Indeed Brewing in Minneapolis, stands outside a cooler for cans of seltzer containing THC, the active ingredient in marijuana, in his brewery's taproom on Thursday, Nov. 20, 2025. (AP Photo/Steve Karnowski)

Ryan Bandy, chief business officer at Indeed Brewing in Minneapolis, stands near a pallet of six-packs of seltzer containing THC, the active ingredient in marijuana, in his brewery on Thursday, Nov. 20, 2025. (AP Photo/Steve Karnowski)

Cans of seltzer containing THC, the active ingredient in marijuana, speed down the canning line at Indeed Brewing in Minneapolis on Thursday, Nov. 20, 2025. (AP Photo/Steve Karnowski)

ATLANTA (AP) — A federal judge has dismissed a civil rights lawsuit filed by the parents of an environmental activist who was shot dead by Georgia state troopers, saying their actions were “objectively reasonable” when they shot pepper balls into the activist's tent and ultimately fired fatal gunshots after the 26-year-old shot one of the troopers.

The Jan. 18, 2023, shooting of Manuel Paez Terán, known as “Tortuguita,” was a galvanizing moment for the movement to halt the construction of what critics labeled “Cop City,” a sprawling police and firefighter training center that opened last year on the site of a forest and former prison farm just outside Atlanta.

Paez Terán’s family later sued three law enforcement officers who they say planned and carried out the raid against protesters who had spent months camping in the woods near the DeKalb County construction site. The lawsuit said troopers violated Paez Terán's free speech rights and used excessive force against the activist, who then panicked and began firing shots. An autopsy commissioned by the family concluded that Paez Terán, who used they/them pronouns, was sitting cross-legged with their hands in the air when they were shot more than a dozen times.

In a ruling Monday, U.S. District Judge Steven Grimberg noted that, as the plaintiffs have acknowledged, Paez Terán fired at the troopers, wounding one of them, which the judge said makes the troopers' lethal response reasonable. Grimberg also said that prior to the shooting, troopers were within their rights to fire pepper balls at Paez Terán after the activist, who was accused of criminal trespass, did not comply with orders to leave the tent.

“Because Paez Teran initiated gunfire with the (Georgia State Patrol) officers, Plaintiffs cannot maintain that Defendants’ actions were the proximate cause of the use of deadly force that ultimately ended the decedent’s life,” the judge wrote.

Grimberg also ruled that the officers had qualified immunity, special legal protection that prevents people from suing over claims that police or government workers violated their constitutional rights.

Paez Terán’s parents, Belkis Terán and Joel Paez, are “devastated” by the judge's ruling, according to their attorneys, Jeff Filipovits and Wingo Smith.

“They feel they are being denied the accountability they deserve,” the attorneys said in a statement. “The records of their child’s death still have not been publicly released. They will be reviewing all their legal options.”

Body camera footage from four Atlanta officers involved does not show the shooting itself, the Georgia Bureau of Investigation has said. But the agency said footage shows the officers encountered Paez Terán in a tent in the woods and fired in self-defense after the activist shot at troopers and ignored verbal commands to leave the tent.

A prosecutor declined to charge the troopers who killed Paez Terán, saying their use of deadly force was “objectively reasonable.” Investigators have also said ballistics evidence shows the injured trooper was shot with a bullet from a gun Paez Terán legally purchased in 2020.

Activists formed the “Stop Cop City” movement to protest the construction of an 85-acre (34-hectare) Atlanta Public Safety Training Center, which they said would cause environmental damage by cutting down huge swathes of trees and exacerbate flooding fears in a poor, majority-Black neighborhood. They also opposed the use of tens of millions in public funding on what critics described as a training ground for “urban warfare.”

Protests against the facility at times veered into violence, with some masked activists torching police cars and construction equipment — actions that ultimately led to a sprawling racketeering indictment against 61 protesters in 2023. A Fulton County judge tossed the landmark case on procedural grounds last year, but Republican Attorney General Chris Carr is appealing the ruling.

Though the movement has receded since the filing of the racketeering charges and the opening of the training center, the name Tortuguita is still invoked at anti-police protests, and the activist's image has become a common sight in murals and flyers across Atlanta.

FILE - Belkis Terán, left, Daniel Paez, center, and Pedro Terán, family members of Manuel Esteban Paez Terán, known as “Tortuguita,” in poster at right, embrace during a news conference, Monday, March 13, 2023, in Decatur, Ga. (AP Photo/Alex Slitz, File)