Feds Issue Confusing Reminders On Use Of Welfare Benefits To Buy Marijuana And Hemp Products

The U.S. Department of Agriculture (USDA) has issued two back-to-back
updates on the use of federal welfare benefits to buy cannabis foods or
drinks—at one point singling out hemp-derived CBD as a prohibited item but
then replacing that with broader language focusing on “cannabis/marijuana.”

An FAQ from USDA’s Food and Nutrition Service was first updated last week
to clarify rules on what can and cannot be purchased using Supplemental
Nutrition Assistance Program (SNAP) benefits. Unlike the previous version
of the federal webpage, the new one explicitly lists cannabis among the
products that can’t be purchased with the benefits.

“Households CANNOT use SNAP benefits to buy…Food and drinks containing
controlled substances such as cannabis/marijuana,” it now says. Other
SNAP-restricted items include alcohol, cigarettes, vitamins, pet food and
foods that are hot at the point of sale.

But for reasons that aren’t clear, this is the second cannabis-related
update to the FAQ in a matter of days. An initial update last week
specified that SNAP benefits couldn’t go toward “cannabis-derived products,
such as CBD, and any other controlled substances.”

That CBD-specific language was quickly removed, however.

Marijuana Moment reached out to USDA for clarification, but a
representative was not immediately available.

In any case, the new FAQ language doesn’t necessarily represent a policy
change, as USDA first issued guidance in 2020 stipulating that while people
can use SNAP benefits for certain foods containing “hulled hemp seed, hemp
seed protein powder, and hemp seed oil,” they cannot buy “hemp plants,
leaves, and shoots.”

USDA further clarified at the time that foods “containing cannabis-derived
products, such as CBD, and any other controlled substances, are not
eligible to be purchased with SNAP benefits,” similar to what’s articulated
in the latest update to the FAQ. The same language was maintained in
another update last year.

Why the agency determined that its important to clarify the cannabis
prohibition on its FAQ page now is unclear, but it comes at a time when
many in the cannabis space are closely watching for signals about how the
administration will navigate marijuana and hemp issues during President
Donald Trump’s second term.

In his first term, Trump signed the 2018 Farm Bill that federally legalized
hemp, creating an industry that has since experienced significant
volatility amid concerns about the resulting proliferation of a largely
unregulated market for intoxicating cannabinoid products.

But despite signing that legislation into law—and later endorsing marijuana
rescheduling and industry banking access on the 2024 campaign trail—the
president hasn’t publicly commented on cannabis policy issues since taking
office in January.

Meanwhile, a pair of GOP-led congressional bills filed earlier this month
would prevent people from using federal financial assistance under the
Temporary Assistance for Needy Families (TANF) program at cannabis
dispensaries.

Back at USDA, the agency recently released a noticed that it is terminating
a series of trade advisory committees to comply with an executive order
Trump signed in February that’s meant to reduce the size of the federal
government across multiple agencies. One of those committees that had been
expanded to include hemp industry representatives to promote the crop
internationally.

Meanwhile, a report released by USDA last month found that, even as more
states and some congressional lawmakers pursued bans on consumable hemp
products, the industry saw significant growth in 2024.

The National Hemp Report, which USDA conducts annually to assess the
economic health of the market, showed that hemp farmers cultivated 45,294
acres of the crop last year, up 64 percent from 2023. And the industry’s
value jumped about 40 percent, increasing to $445 million.


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As the fate of the consumable hemp market remains murky amid legislative
pushback, a congressional committee held a hearing on the Food and Drug
Administration (FDA) last month—with a hemp industry expert explaining how
the market is “begging” for federal regulations around cannabis products.

Lawmakers have consistently raised concerns about FDA’s refusal to
establish rules allowing for the marketing of federally legal hemp as a
food item or dietary supplement.

One potential legislative solution that U.S. Hemp Roundtable’s Jonathan
Miller noted to the committee is a bipartisan bill Sen. Ron Wyden (D-OR)
filed last year that would create a federal regulatory framework for
hemp-derived cannabinoids.

The legislation would empower states to set their own rules for products
such as CBD while also empowering FDA to ensure that certain safety
standards are met in the marketplace.

In the absence of FDA rules, states from California to Florida to Texas
have pushed for sweeping changes to their own laws around consumable hemp
products. While much of the focus has been on intoxicating products,
federally legal CBD businesses have also found themselves increasingly in
the crosshairs.

Meanwhile, as lawmakers prepare to once again take up large-scale
agriculture legislation this session, congressional researchers in January provided
an overview of the policy landscape around hemp—emphasizing the divides
around various cannabis-related proposals among legislators, stakeholders
and advocates.

Senate Democrats released the long-awaited draft of 2024 Farm Bill last
year that contained several proposed changes to federal hemp laws—including
provisions to amend how the legal limit of THC is measured and reducing
regulatory barriers for farmers who grow the crop for grain or fiber. But
certain stakeholders had expressed concern that part of the intent of the
legislation was to “eliminate a whole range of products” that are now sold
in the market.

Texas Senate Passes Bill To Expand Medical Marijuana Program With New
Qualifying Conditions And Dispensary Licenses

*Photo courtesy of Kimzy Nanney.*

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Marijuana And Hemp Products appeared first on Marijuana Moment.