Federal budget deal bans hemp-derived THC products in Illinois and nationwide

Federal ban puts Illinois hemp businesses on the clock to shut down

Illinois store owners, including Chitiva’s Charles Wu, say the move will push products into a gray market and hurt small businesses that have operated openly under current laws.

ILLINOIS - The days are numbered for hemp-derived products such as Delta-8 and Delta-9 THC in Illinois and across the country.

A little-noticed provision in the recent federal government funding deal effectively bans the sale of those products, giving businesses one year from Nov. 12 to shut down operations.

What we know:

Drinks, vapes and other products containing Delta-8 and Delta-9 THC have been sold widely throughout Illinois. 

They thrived due to a loophole in a years-old federal farm bill that legalized hemp but did not regulate hemp-derived intoxicants. That left businesses operating in legal limbo while state and city lawmakers struggled — and failed — to impose regulations.

The new federal provision closes that loophole. Once the one-year grace period expires, production and sale of these hemp-derived intoxicants will be illegal.

Charles Wu, owner of Chi-Tiva dispensaries in Bucktown and the South Loop, said his business has been thrown into uncertainty.

 "This stuff is in everyday society. It's not gonna go away, right. So instead of having honest businesspeople who are willing to be regulated, it's going to push it into some gray market or other thing because the consumers have obviously spoken and there's hundreds if not thousands of businesses in Chicago alone," Wu said. 

Reactions and concerns:

Debate over hemp regulation has been smoldering in Illinois for years. Supporters of the federal ban say it’s a victory for public health and safety. They argue that without oversight, consumers have had no way of knowing what ingredients or THC concentrations were in these products.

Licensed cannabis businesses have also complained about the uneven playing field, noting they have spent millions to comply with strict regulations while hemp businesses operated largely free of oversight. City officials had even projected $10 million in new tax revenue from hemp products — a plan now rendered moot.

Second Ward Alderman Brian Hopkins, a longtime critic of hemp-derived THC, said he’s relieved the federal measure passed but warned that dismantling the industry will be complex.

"We're inspecting some guidance from the FDA. We're possibly even hopeful that we'll get some federal assistance to jurisdictions like Illinois that have a thriving legal cannabis industry. We need help. We can't do this overnight. We can't just purge the shelves of gas stations and mini marts of these illegal products…," Hopkins said.

What's next:

Gov. J.B. Pritzker has also voiced opposition to hemp-derived intoxicants, making statewide legalization unlikely. That leaves few options for affected business owners.

Hemp used for clothing or industrial materials remains legal, but products derived from hemp that can get users high will soon be outlawed.