Business Owners React to THC Ban Approved by US Senate

A provision buried in the federal government’s proposed funding package could devastate Wisconsin’s burgeoning cannabis industry.

Now 43 days into a record-setting government shutdown, the U.S. Senate on Nov. 10 passed a funding bill that includes money for food assistance, retroactive pay for federal workers and $115 billion for veterans’ medical care—along with language that would reverse the unintended legalization of hemp-derived THC in the 2018 Farm Bill.

Lawmakers are now rushing into action, with a vote from the U.S. House of Representatives expected Wednesday. If passed, the bill heads to President Donald Trump.

“It could decimate a $30 billion industry overnight,” said Ryan Pattee, chief financial officer at Goodland Extracts, the state’s largest hemp processor and the largest cannabigerol (CBG) extraction facility in the Northern Hemisphere. “They snuck this one in at the 11th hour. It’s a targeted attack on an industry, and I feel that it’s coming from Big Tobacco, Big Alcohol, Big Pharma—because they don’t currently participate in the market.”

Wisconsin’s cannabis industry exploded when the 2018 Farm Bill declassified hemp as a federally controlled substance to encourage commercial cultivation. It defined hemp as cannabis containing less than 0.3% THC by dry weight, differentiating it from marijuana and paving the way for retail operations to sell THC beverages, edibles and other intoxicating products legally.

The new measure, championed by the Senate’s former Minority Leader Mitch McConnell, R-Ky., would redefine hemp and impose stricter regulations on its derivatives, including a limit of 0.4 milligrams of total THC per container. If passed, it would significantly limit the sale of intoxicating products.

“If this goes through, it’s going to affect the livelihood of 300,000 people that represent a $28 billion industry nationwide,” said Justin Letizia, co-owner of Canna Bloom Farmacy. “At a time when people are struggling to afford basic necessities, I don’t understand how it’s being proposed that we take 300,000 jobs away from Americans—many of which are farmers.”

Supporters of the ban say that the unregulated industry threatens public health, particularly due to low-quality products and the absence of statewide age restrictions. Several states have implemented full or partial bans on hemp-derived THC products, while others, such as Texas, have attempted and failed.

However, industry leaders argue that regulation, not an outright ban, is key to improving safety. “We want those things—that’s what the industry needs,” Pattee said. “There’s bad actors in all industries, but the goal is to weed those people out with regulation.”

Others warn that a ban could push consumers toward illicit sources. “Safety means killing the illegal street market, which only happens with a sensible legalization bill,” said Keefe Olig, co-owner of TerraSol Dispensary.

Letizia and his business partner, Stephanie Lembke, are longtime proponents of recreational and medical cannabis and have lobbied politicians to support legalization. “This is not a left or right issue,” Letizia said, citing widespread support for hemp-derived products. “Quite frankly, it’s a medical issue,” he added, noting that while politicians debate the merits of selling these products at liquor stores and bars, they overlook people who need cannabis as medicine.

Pattee added that he’d like to see Wisconsin model itself after states like Minnesota and Kentucky. “They have very well thought out hemp laws,” he said. “I feel that it should be the state’s decisions, not the federal government—that’s where I really stand.”

The final version of the bill extends government funding through January 2026 and, if passed, would end the shutdown that’s been in effect since Oct. 1 as Republicans and Democrats sparred over partisan issues.

“It’s a very complex and nuanced situation that’s probably going to change by the hour right now,” Letizia said. “We’ll fight all the way till the bitter end,” Lembke added.