Bipartisan Bill Seeks to Regulate Hemp Beverages Like Alcohol

Federal Bill Targets Intoxicating Hemp Drinks

The legislation, filed August 19 by a bipartisan coalition, would subject hemp beverages containing delta-8 THC, delta-9 THC, and similar intoxicants to state alcohol-control statutes. Under the bill, any beverage derived from hemp that produces psychoactive effects would be classified alongside alcoholic products for regulatory purposes. That means state liquor-board approval. Age-gated sales. Standardized labeling. The measure doesn't ban the products outright but removes them from the agricultural commodity framework established by the 2018 Farm Bill, which legalized hemp defined as cannabis containing less than 0.3 percent delta-9 THC by dry weight.

Sponsors haven't yet released the full legislative text, but industry sources briefed on the draft confirmed the alcohol-analogy structure. Retailers would need to obtain the same licenses required for beer and wine sales, and products would be subject to excise taxes at rates determined by individual states. The proposal doesn't create a new federal regulatory body; instead, it defers enforcement to existing state alcohol and beverage control agencies.

Timing follows mounting pressure from state attorneys general, public-health advocates, and segments of the regulated cannabis industry, all of whom have called for federal action on intoxicating hemp products sold outside state cannabis programs. No companion bill has been filed in the Senate as of this report.

Why the 2018 Farm Bill Created a Legal Gray Zone

The 2018 Farm Bill legalized hemp cultivation and removed hemp from the Controlled Substances Act, but it didn't anticipate the rise of synthetically derived or concentrated cannabinoids sold as consumer products. The statute defined hemp as cannabis with no more than 0.3 percent delta-9 THC on a dry-weight basis, a threshold that applies to the raw plant material. Manufacturers quickly exploited the loophole by concentrating delta-8 THC, delta-10 THC, THC-O, and other analogs from compliant hemp feedstock, then formulating beverages, gummies, and vapes that deliver intoxicating doses.

Because these products technically derive from legal hemp, they fall outside the jurisdiction of state cannabis regulators in most states. The Food and Drug Administration has issued warning letters to some manufacturers but hasn't pursued systematic enforcement, citing resource constraints and statutory ambiguity. Result? Intoxicating hemp beverages are sold in convenience stores, gas stations, and online retailers in states where recreational cannabis remains illegal, creating a de facto legal market that bypasses state cannabis taxes, testing requirements, and age-verification protocols.

Bipartisan criticism has mounted. Republican lawmakers in states with no legal cannabis programs have raised concerns about youth access and product safety, while Democratic lawmakers in states with regulated cannabis markets argue that untaxed, untested hemp products undermine voter-approved frameworks.

State-Level Enforcement and Industry Impact

If enacted, the bill would shift enforcement responsibility to state alcohol and beverage control agencies, which already oversee age verification, labeling compliance, and retail licensing for beer, wine, and spirits. Retailers selling hemp beverages would be required to obtain the same permits used for alcohol sales, subjecting them to routine inspections and compliance audits. Products would need to display standardized labels indicating cannabinoid content, serving size, and intoxication warnings similar to those on alcoholic beverages.

States could impose excise taxes on hemp beverages at rates comparable to alcohol, a provision that could generate significant revenue in states with large convenience-store networks. Industry analysts estimate that hemp beverage sales in the United States exceeded two billion dollars in 2025, with the majority of transactions occurring in states without legal recreational cannabis. Placing those sales under alcohol-control frameworks would bring them into state tax bases for the first time.

Non-intoxicating hemp products such as CBD tinctures, topicals, or dietary supplements aren't addressed in the bill; they'd remain under FDA jurisdiction. The measure also doesn't preempt state bans on intoxicating hemp products—states that have already prohibited delta-8 THC and similar substances would retain that authority.

What Happens Next

The bill faces an uncertain path in a divided Congress, with no clear timeline for committee hearings or floor votes. Previous federal hemp-regulation proposals have stalled in committee. This measure will likely encounter opposition from hemp-industry trade groups that argue the 2018 Farm Bill framework is sufficient. Alcohol-industry lobbying groups haven't yet taken a public position, though some state-level beer and wine associations have supported similar measures at the state level.

Committee assignment is expected within the next two weeks. If the bill advances to markup, amendments are likely to address THC concentration limits, testing requirements, and interstate commerce provisions. For full background on this regulatory debate, see the CannIntel topic hub on hemp beverage regulation.

State-level action continues. Ohio, Florida, and Texas have all introduced legislation in 2026 to restrict or ban intoxicating hemp products, and several states have filed lawsuits challenging the legality of delta-8 THC under existing controlled-substance statutes. The federal bill, if passed, would preempt those state-by-state battles by establishing a uniform regulatory baseline.