Phoenix

New Federal Spending Bill Provision Tightens Hemp Regulations, Impacts THC Product Sales in Arizona

AI Assisted Icon
Published on November 17, 2025
New Federal Spending Bill Provision Tightens Hemp Regulations, Impacts THC Product Sales in ArizonaSource: Unsplash/CRYSTALWEED cannabis

The recent spending bill, pivotal in ending the government shutdown, has also brought about significant changes for the hemp industry due to a small provision tucked within its pages. As reported by FOX 10 Phoenix, the 2018 Farm Bill's loophole that had previously allowed the sale of hemp products in unregulated spaces is under scrutiny.

Under this provision, the definition of legally sold hemp products has altered—specifically those containing over 0.4 milligrams of THC. This change is a direct response to concerns voiced by officials like Yavapai County Sheriff David Rhodes, who highlighted, as told to FOX 10 Phoenix, "These products are really problematic, especially here in Arizona,” owing to their wide availability and appeal to young consumers. Yahoo News reported that prior to the bill, hemp was being sold at various non-dispensary locations such as smoke shops and corner stores.

The Arizonian cannabis industry has echoed the call for reinforced regulations. Moe Asnani, founding partner at Ilava and D2 Dispensary, emphasized to FOX 10 Phoenix the importance of consumer safety, stating, "I also think that from a safety perspective, there is heavy metals and pesticides and other things that they’re not required to test for because there was a loophole, and we have to meet those regulations."

In extending reassurance to customers frequenting dispensaries, Asnani clarified, "The most important thing people should know about this change is that it doesn’t affect anybody who has been buying cannabis products from a licensed dispensary in the state of Arizona," according to his statement to FOX 10 Phoenix. Yet, for those who have been procuring THC products outside of licensed dispensaries might find their access impeded.

Regarding the implementation of this new policy, the Hemp Industry Trade Association of Arizona has embraced the adjustment, releasing a statement that underscored the yearlong timeframe to adapt: "This one-year transition period gives us exactly what we’ve been fighting for: time to formalize standards and bring unregulated products under responsible oversight," as per FOX 10 Phoenix. Arizona Attorney General Kris Mayes' office is still dissecting the federal legislation to ascertain the full impact, as they previously requested clarification from Congress on hemp's definition. The industry now awaits further developments and regulatory frameworks that will ensue from this latest shift in drug policy.