Trump administration signals possible increase in the regulation of hemp

The Trump administration’s 2021 budget proposes increased regulation of states in which medical marijuana and CBD products are marketed and sold. The budget proposes that $5 million (subscription required) be distributed to the Food and Drug Administration (FDA) to conduct research on and inspections of CBD products and “crack down” on the marketing of cannabis-related products, primarily CBD.

Businesses selling CBD products in Ohio should make sure that they are following recent Ohio regulations detailing which CBD products may be sold. They should also be careful to avoid making overly broad claims when advertising CBD products, particularly if the FDA is granted additional money to investigate misleading CBD marketing.

The administration’s budget also proposes ending the existing Justice Department policy, which has been in place since 2014 and states that the Justice Department cannot use its funds to stop states “from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”

Businesses operating or involved in the cannabis industry should monitor both of these budget proposals throughout the 2020 election season.