The U.S. Department of Agriculture (USDA) is reminding all retailers that accept federal welfare benefits that they’re prohibited from selling products containing cannabis to people using Supplemental Nutrition Assistance Program (SNAP) funds—and that violating the rule could lead to penalties that include possible “criminal prosecution.”
James Miller, USDA Food and Nutrition Service administrator, said in a letter sent to over 250,000 retailers that participate in SNAP on Thursday, the Department is “committed in fighting waste, abuse, and fraud,” including “taking rapid action to eliminate the fraud taking place in the SNAP Retailer Community and rooting them out who are abusing the generosity of taxpayers.”
It is important that you participate as a SNAP approved retailer. Miller noted that the retailers connect American families with nutritious food every day. Each month, more than 41 million people with low incomes redeem their SNAP benefits in stores throughout the United States. SNAP, which is funded by American citizens, must be run with transparency and accountability. “All participating retailers must adhere to the SNAP regulations in order to protect taxpayers.”
He wrote that the letter was intended to “remind recipients that accepting SNAP benefits in exchange for food and beverages containing substances like cannabis/marijuana is an offense.”
The USDA FNS says, “USDA FNS fights against fraud actively and protects taxpayer money.” The consequences for retailers who violate program rules include being disqualified from receiving SNAP payments, monetary sanctions, fines or criminal prosecution.
USDA has not explained why it felt that the updated rules regarding cannabis were necessary. However, the changes also come amid several updates to the FAQ page of the Department which reiterate the policy. The FAQ has been updated at least three different times in the last week.
Originally, the statement stated that SNAP benefits could not be used for CBD or cannabis food and beverage products. It was then changed to only list cannabis and marijuana, excluding CBD. The latest announcement posted on Wednesday says “food and drink containing controlled substance such as CBD and cannabis/marijuana” is not eligible.
In any case, the 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 clarified that at the same time, “foods containing cannabis-derived product, like CBD, or any other controlled substance, is not eligible for SNAP benefits.” This statement was similar to the one in the most recent update of the FAQ. The same language was maintained in another update last year.
This letter, along with an updated FAQ on marijuana and hemp policy issues is being sent at a moment when cannabis industry professionals are watching closely for any signals that may indicate how President Donald Trump will handle the issue of marijuana and hemp during his second term.
Trump’s first term saw him sign the 2018 Farm Bill which legalized hemp on a federal level. The industry has seen significant volatility in recent years amid concern about a proliferation of an unregulated market that sells cannabinoid products with high levels of THC.
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 last 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. The hemp industry was included in one of the committees to promote international sales.
In April, the USDA released a separate report that found, in spite of more states and congressional legislators pursuing bans on hemp-based products for consumption, there was significant growth within this industry by 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. The industry value increased by about 40%, reaching $445,000,000.
—
MEDCAN24 tracks hundreds of marijuana, psychedelics, and drug policy legislation in state legislatures this year. Patreon members who pledge at least $25/month gain access to interactive maps, charts, and a hearing calendar.
Discover more about the marijuana bills tracker. Become a patron on Patreon for access.
—
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.
The FDA has refused to set rules that would allow the federally-legal hemp plant to be sold as food or nutritional 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.
It would allow states to determine their own standards for CBD-based products while also giving FDA authority to monitor the safety of these products on the market.
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. In the absence of FDA rules, states from California to Florida to Texas have pushed for sweeping changes in their own laws around consumable hemp products.
On Thursday, a GOP-led House committee has approved a spending bill containing provisions that hemp stakeholders say would devastate the industry, prohibiting most consumable cannabinoid products that were federally legalized during the first Trump administration.
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. Some stakeholders were concerned that this legislation would “eliminate” a range of current products.
Doctor Seeking To Reschedule Psilocybin To Treat Dying Patients Demands DEA Update After Agency Agreed To Initiate Federal Review
Brian Shamblen provided the photo.
MEDCAN24 could not exist without readers’ support. Please consider making a Patreon monthly pledge if you depend on our cannabis journalism for information.
