Wisconsin Governor Urges Congress to Close Federal Hemp Loophole

Governor Cites Public Health and Regulatory Chaos

Evers argued that the 2018 Farm Bill's definition of hemp—based solely on delta-9 THC concentration—has created an unintended market for psychoactive products that bypass state oversight. Wisconsin hasn't legalized adult-use cannabis. Yet retailers across the state now sell delta-8 THC vapes, THCA flower, and THC-infused gummies derived from hemp under the federal threshold. These products aren't tested, labeled, or taxed under Wisconsin's proposed cannabis framework, which remains stalled in the state legislature.

The governor's letter specifically requested that Congress amend 7 U.S.C. § 1639o, the statutory section defining hemp, to include all intoxicating cannabinoids—not just delta-9 THC—in the controlled-substance threshold. Evers didn't propose alternative language but urged "swift action" before the 2027 Farm Bill reauthorization.

Federal Hemp Loophole Traces to 2018 Farm Bill Language

The loophole stems from the Agriculture Improvement Act of 2018, which removed hemp from Schedule I by defining it as cannabis containing no more than 0.3% delta-9 THC on a dry-weight basis. The statute doesn't address delta-8 THC, delta-10 THC, THC-O, THCA, or other cannabinoids that can be synthesized or extracted from compliant hemp and produce intoxicating effects. Products marketed as "legal hemp" now include items functionally identical to dispensary cannabis.

At least 19 states have enacted emergency rules or legislation to ban or restrict intoxicating hemp products since 2022, but enforcement remains inconsistent. Wisconsin's Department of Agriculture, Trade and Consumer Protection (DATCP) issued guidance in 2023 stating it lacks authority to regulate hemp-derived intoxicants unless the legislature acts.

Wisconsin's Cannabis Framework Remains Stalled

Evers has proposed adult-use legalization in each of his last three budget bills, most recently in February 2026, but the Republican-controlled legislature has declined to advance any cannabis measure beyond committee. His 2026 budget included a regulated adult-use market with a 10% excise tax and licensing provisions modeled on Illinois' framework. The proposal died in the Joint Finance Committee in April.

Hemp retailers, meanwhile, operate in a regulatory vacuum. A May 2026 survey by the Wisconsin Hemp Alliance counted more than 400 retail locations selling intoxicating hemp products, generating an estimated $180 million in annual sales. None of that revenue is captured by state tax or testing regimes.

Congressional Action Uncertain Ahead of 2027 Farm Bill

Federal lawmakers have introduced at least four bills since 2023 to close the hemp loophole, but none has advanced to a floor vote. The most recent, H.R. 4521 (the Hemp and Cannabis Coordination Act), proposed by Rep. Mary Miller (R-IL) in March 2026, would redefine hemp to exclude any product with "intoxicating cannabinoids in concentrations exceeding trace amounts." It remains in the House Agriculture Committee.

Senate Majority Leader Chuck Schumer (D-NY) told reporters in June that hemp reform could be attached to the 2027 Farm Bill reauthorization, which must pass by September 2027. Schumer also said any hemp provision would need to avoid conflict with state cannabis programs—a balance that has eluded prior drafts.

State Enforcement Challenges Mount

Wisconsin is one of 12 states without a legal adult-use or medical cannabis program but with widespread intoxicating-hemp retail presence, creating enforcement headaches for local officials. Milwaukee County District Attorney John Chisholm said in a June interview that his office can't prosecute hemp-derived THC cases because state statute doesn't clearly prohibit the products. "We're in a legal no-man's-land," Chisholm said.

Evers' letter cited three incidents in Wisconsin in 2026 where minors were hospitalized after consuming high-dose delta-8 gummies purchased at gas stations. The products carried no child-resistant packaging. No dosage guidance. DATCP has no authority to recall or test the products under current law.

What Comes Next

The next legislative checkpoint is the House Agriculture Committee's markup of the 2027 Farm Bill, expected in November 2026. If Congress doesn't act, Wisconsin and other states will continue to face a bifurcated market: illegal state-regulated cannabis programs and unregulated federal-legal hemp intoxicants. For context on the broader federal hemp debate, see the CannIntel topic hub on the federal hemp loophole.

Evers hasn't indicated whether he'll pursue a state-level emergency rule through DATCP, which would require approval from the legislature's Joint Committee for Review of Administrative Rules—a body that has blocked prior cannabis-related rules.