New Bill Would Give FDA Authority Over Hemp, Enable CBD Medicare

A bipartisan bill introduced Thursday would hand the FDA regulatory authority over hemp-derived CBD products for the first time, potentially clearing the way for Medicare coverage that President Trump promised during his campaign.

The legislation marks a significant shift in federal hemp policy, six years after the 2018 Farm Bill legalized hemp production but left a regulatory vacuum around CBD supplements and food products. The FDA has repeatedly stated it lacks clear authority to regulate these products under current law.

"This fills a critical gap that's existed since 2018," said Jonathan Miller, general counsel for the U.S. Hemp Roundtable, in a statement supporting the measure. "Consumers deserve safety standards, and businesses deserve clear rules."

The Regulatory Gap

Since hemp's federal legalization, the CBD market has exploded to an estimated $5 billion annually. Yet the FDA has issued warning letters to dozens of companies making health claims while maintaining it cannot approve CBD as a dietary supplement or food additive without new legislation.

The agency's position has created what industry advocates call a "wild west" marketplace, where products vary wildly in quality and labeling. State regulators have stepped in with patchwork rules, but no uniform federal standards exist.

The new bill would explicitly grant FDA authority to establish safety standards, testing requirements, and labeling rules for hemp-derived products. It would also create a pathway for CBD products to be covered under Medicare—a promise Trump made to senior voters in Florida and other key states during the 2024 campaign.

Medicare Coverage Path

The Medicare provision could prove transformative for both seniors and the hemp industry. Currently, Medicare Part D prescription drug plans cannot cover CBD products because they're not FDA-approved drugs. The new framework would allow the agency to approve specific CBD formulations for conditions like chronic pain or anxiety, opening the door to coverage.

"We're talking about potentially millions of seniors who could access CBD through their Medicare plans," said Rep. Thomas Massie (R-KY), one of the bill's sponsors. "That's good for patients and it validates what many have known for years about CBD's therapeutic value."

The legislation comes as multiple states have already begun exploring CBD coverage under Medicaid programs. Louisiana and Texas both launched pilot programs in 2024, with preliminary data showing reduced opioid use among participants.

Industry Response

Hemp industry groups have largely welcomed the bill, despite some concerns about increased regulatory costs. The Hemp Industries Association called it "long overdue," while noting that smaller producers may struggle with compliance costs.

"FDA oversight will separate legitimate companies from fly-by-night operators," said Eric Steenstra, president of Vote Hemp. "Short-term pain for long-term gain."

But some consumer advocates worry the legislation doesn't go far enough. The bill doesn't address THC levels in hemp products or the growing market for intoxicating hemp-derived cannabinoids like delta-8 THC, which exist in a legal gray area.

What Happens Next

The bill faces an uncertain path in a divided Congress, though its bipartisan sponsorship—with co-sponsors from both parties in the House and Senate—improves its odds. Congressional sources suggest it could be attached to a larger agriculture or healthcare package later this year.

The FDA would have 180 days after passage to begin establishing regulatory frameworks, according to the bill's text. Industry observers expect the agency to prioritize safety standards and testing protocols before moving to approve specific products for Medicare coverage.

Timing could prove crucial. With Trump's promise to seniors still fresh and the 2026 midterms approaching, some political analysts see momentum for hemp legislation that seemed impossible just two years ago.

"The politics have shifted," Miller noted. "Both parties see value in sensible hemp regulation and expanding Medicare options for seniors. That's a rare convergence."

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This article is based on original reporting by mjbizdaily.com.