Senator pushes back on proposed regulations for consumable hemp products

By Noelle Annonen , Multimedia Reporter

March 25, 2026, 7:30 p.m. ·

Sen. John Cavanaugh during debate Wednesday (Photo by Fred Knapp, Nebraska Public Media News) — Sen. John Cavanaugh during debate Wednesday. (Photo by Fred Knapp, Nebraska Public Media News)

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Nebraska Sen. John Cavanaugh filed a complaint with the Executive Board of the Legislature after the state Department of Agriculture proposed regulations on consumable hemp, THC and related products.

The Department of Agriculture issued a notice of proposed regulations over consumable hemp, some THC products derived from hemp, and related substances. The regulations would bar the products from inclusion in food. In his complaint to the Executive Board, Cavanaugh contended that the department has no authority to issue those regulations.

This came after Gov. Jim Pillen issued an executive order directing state departments to take action on the products.

“They’re just following the direction of the governor and not the law,” Cavanaugh said.

The complaint was addressed to Sen. Ben Hansen, chair of the executive board. Hansen said the complaint will be referred to the Agriculture Committee for further review.

“I think he makes some legitimate arguments,” Hansen said. “I think he is within his rights to bring it to the Executive Board.”

Under the 2018 Farm Bill, passed by Congress and President Donald Trump under the Agriculture Improvement Act, hemp and THC derived from hemp are no longer classified as federally controlled substances. Nebraska adopted the same policy the next year. This is so long as the products have less than 0.3% with a strain of delta-9 THC concentration. Moreover, when Nebraska approved its medical marijuana program in 2024, voters simultaneously created a Medical Cannabis Commission, which does have the authority to regulate these types of products.

Because of this, Cavanaugh argued that the Department of Agriculture has no business issuing the regulations. He added that businesses selling hemp and hemp-derived THC products, often in the form of seltzers or gummies, are doing so legally under both federal and state law. Additionally, the businesses bring in $10 million in sales taxes every year and employ an estimated 2,000 Nebraskans. Cavanaugh pointed out that the regulations come as the legislature attempts to solve the state’s current structural budget deficit.

“When we are in this budget crunch that we are talking about, shutting down all these legitimate businesses that are operating under Nebraska law will have a detrimental effect on sales tax and other taxes that the state derives from these businesses,” Cavanaugh said.