President Trump requests additional funds to regulate CBD, hemp

Hemp and CBD would get new attention by federal agencies under a 2021 budget plan released this week by President Donald Trump.

Trump’s proposal asks for an additional $5 million next fiscal year for the U.S. Food and Drug Administration to regulate cannabis and its derivatives, including CBD.

The president also asked for more money to oversee hemp farmers.

The budget requests come shortly after legislation was introduced in the U.S. Congress to require federal food and agriculture regulators to treat hemp-derived CBD as a dietary supplement.

That proposal came in response to the increasing popularity of the product and the FDA’s year-long delay in developing regulations.

The FDA last May started reviewing federal regulations for hemp-derived CBD after the 2018 Farm Bill federally legalized hemp and its derivatives. The review has yet to go public.

The $5 million boost in Trump’s budget would help advance the FDA’s regulations for products containing CBD while allowing the agency to enforce the law against making unsubstantiated medical claims about their products, the FDA said in a statement.

“FDA is seeing a significant increase in activity relating to the marketing of unlawful cannabis-derived products, especially those containing cannabidiol, since the Farm Bill passed,” the agency noted.

The $5 million would be divided across different FDA departments, including:

  • The Office of Regulatory Affairs ($2 million).
  • The Center for Veterinary Medicine ($500,000).
  • The Center for Food Safety and Applied Nutrition ($2 million).
  • FDA headquarters ($500,000).

The agency said it would use the money to:

  • Regulate cannabis-derived substances such as CBD, in FDA-regulated products including dietary supplements and when it’s used as an additive in unapproved products such as food.
  • Develop policy.
  • Process product-review applications.
  • Conduct inspections and enforcement.
  • Carry out research.

“FDA must support oversight of increasing numbers of marketed FDA-regulated products containing cannabis-derived substances that may put the public at risk,” the agency pointed out in the budget’s executive summary.

The money would “indirectly increase capacity of FDA’s dietary supplement and food ingredient review programs,” the agency added.

Agriculture money, too

The fiscal year 2021 budget also allocates $17 million for the U.S. Department of Agriculture’s nationwide hemp production program.

The agriculture department said it would use the money to:

  • Regulate licensed farmers under the USDA proposals.
  • Approve state and tribal production plans.

As legal commodity producers, hemp would also see impacts from new funding for USDA programs such as crop insurance, farm loans, conservation programs and research.

The overall 2021 USDA budget includes:

  • Nearly $1 billion for rural connectivity.
  • $200 million to reduce agricultural trade barriers.
  • $8.8 billion for federal crop insurance.
  • $79 million for farm loans.
  • Nearly $4.5 billion for conservation programs and grants.
  • $1 billion for agricultural pest and disease programs.

The final federal spending plan for 2021 must be approved by Congress.

Laura Drotleff can be reached at [email protected]

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4 comments on “President Trump requests additional funds to regulate CBD, hemp
  1. Bonnie Parmenter on

    I think the bill is needed but I also think that because the government passed a law irresponsibly and harmed many farmers, there needs to be a subsidy to reimburse farmers who lost almost everything investing in hemp crops. An overload of permits was issued with-out a market analysis done. Thousands of growers grew crops and spent hundreds of thousands of dollars and can’t sell their crop and may lose their farm. Also, the market is stagnant waiting for what law is coming next. The .03 THC Delta 9 is fine but for the first few years there needs to be a variable in the percentage because no one could predict the THC level, from their seeds they planted and don’t change the rules in the middle of the game. All Hemp that was grown in 2019 needs to be allowed to be sold if the THC Delta 9 is close to the .03 and no matter the THC A levels.

    Reply
    • Joe Hemp on

      You repeatedly stated .03 but that is incorrect. It is a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis. Yes the percentage still needs to be further evaluated to a more reasonable and risk based tolerance. But that will take time. Consistently reasoned and co-operative efforts will be needed by the industry.

      Reply
  2. Charles on

    If the FDA wasn’t dragging its feet in releasing their Rules for Hemp Products Manufacturing, I am convinced that farmers wouldn’t have had such a difficult time selling their crops, especially to the products manufacturers. The product manufacturers are currently reluctant to buy because the FDA won’t release their Rules stating which hemp products will be allowed.
    Yet another thing that would help all hemp farmers to easily sell their crop is to allow hemp that contains at least 1.0%. The USDA, and likely the FDA also, making the decision to keep that level at 0.03% is only hurting ALL hemp farmers.

    Reply

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