Sen. Rand Paul, R-Ky., talks with reporters in Russell building after the senate luncheons on Tuesday, April 14, 2026. (Photo: Tom Williams/CQ Roll Call via AP Images)

A new bipartisan bill led by Rand Paul aims to preserve the U.S. hemp industry by shifting regulatory authority to states and tribal governments, as lawmakers debate provisions that could effectively ban many hemp-derived products nationwide.

The proposed Hemp Safety Enforcement Act, co-sponsored by Amy Klobuchar and Joni Ernst, comes in response to language included in the 2026 agricultural appropriations bill that industry groups say could severely restrict hemp sales.

Paul said the legislation is designed to prevent a federal overhaul from disrupting a multi-billion-dollar sector that already operates under a patchwork of state-level regulations.

“Half the states have already set up their own rules, including THC limits, age restrictions, and safety standards,” Paul said. “This bill allows those systems to continue while ensuring consumer protections remain in place.”

The proposal would allow states and tribal governments to opt out of federal hemp regulations entirely by notifying the federal government, giving them primary authority over production and sales. Jurisdictions that choose this route would still be required to enforce minimum age restrictions and maintain bans on synthetic cannabinoids that do not naturally occur in the hemp plant.

The bill also includes provisions to protect interstate commerce, preventing states from blocking hemp products coming from other jurisdictions that have opted for self-regulation.

Supporters say the legislation is particularly important for sectors like hemp-derived beverages, which have expanded rapidly in recent years and often operate under evolving state guidelines.

Industry organizations including the U.S. Hemp Roundtable and the Hemp Beverage Alliance backed the proposal, warning that a broad federal ban could impact farmers, manufacturers and retailers.

Advocates also argue the measure aligns with broader federal efforts to expand research into cannabis and hemp-derived products, while maintaining guardrails around safety and youth access.

The legislation has been referred to committee in the Senate, where its prospects remain uncertain as Congress continues to negotiate the broader agriculture spending package.