Texas Hemp Industry Sues Over New Regulations | Suspension Sought

AUSTIN, TX – The Texas hemp industry is locked in a legal battle with state health officials over new regulations governing consumable hemp products, potentially upending the state’s burgeoning market. Businesses and industry groups are seeking a temporary injunction to halt enforcement of the rules, which took effect March 31, 2026, while a Travis County court reviews the case.

At the heart of the dispute is a shift in how the state measures THC content in hemp products. The Texas Department of State Health Services (DSHS) and the Texas Health and Human Services Commission (HHSC) adopted regulations moving from a delta-9 THC standard – established in 2019 – to a broader “total THC” formula. Plaintiffs argue this change could render many previously legal products unlawful.

“This case is about protecting the integrity of Texas law,”

Cynthia Cabrera, President of the Texas Hemp Business Council (THBC)

The lawsuit, filed by the THBC along with other industry groups and businesses, alleges that the new regulations exceed the authority granted to state agencies by the legislature. The plaintiffs contend that the rules effectively rewrite hemp regulations without legislative approval, violating both state law and the Texas Constitution. Cabrera pointed to the legislature’s decision not to alter hemp standards during the 2025 session as evidence of this overreach.

Regulations Impacting Sales and Transportation

Beyond the THC measurement issue, the lawsuit challenges several other provisions of the new rules. These include restrictions on the transportation of hemp into Texas for processing, significantly increased licensing fees, and the imposition of steep daily penalties for violations. Businesses warn these measures could disrupt supply chains and threaten the viability of smaller operators.

“These rules upend that framework,”

Brian Swenson of the Hemp Industry Farmers of America

Swenson warned that limiting the movement of hemp products could cripple farm-to-market operations. Retailers have also expressed concerns about the financial impact of the increased licensing fees, arguing they create barriers to entry rather than ensuring compliance.

Industry Faces Significant Fee Increases

The legal challenge comes as the industry faces substantial financial pressures. Recent reports indicate fee increases of up to 4,000% have been implemented, effectively banning what some consider the most popular form of cannabis. The changes have prompted a fight for the industry’s survival, with businesses arguing the regulations threaten to dismantle a significant portion of the legal hemp market in Texas.

The case is currently before a judge in Travis County, with a hearing held to consider the request for a temporary injunction. The outcome of the legal battle will determine whether thousands of Texans will continue to have access to legal hemp products, including smokable forms, and will likely set a precedent for the future regulation of the industry in the state.