D.C. Hemp Company Sues Feds Over “Unworkable” Marijuana Budget Rule

OG article

June 17, 2025

Capitol Hemp, a Washington, D.C.-based business, is hauling the federal government to court, claiming a sneaky budget rider is choking its operations. Filed in late June 2025, the lawsuit targets a rule in the federal spending bill that bans selling hemp products with any detectable THC in D.C., clashing with the 2018 Farm Bill’s 0.3% THC limit. With the $8 billion hemp industry on the line, this fiery fight could reshape D.C.’s cannabis landscape. Here’s the drama, packed into a lively four-minute read.

The rider, renewed yearly since 2015, sets a “zero-tolerance” THC standard in D.C., outlawing hemp with even trace amounts, despite federal legalization. “The federal government’s attempt to impose a zero-tolerance THC standard in D.C. directly contradicts the 2018 Farm Bill,” Capitol Hemp’s lawsuit states. This puts retailers like Capitol Hemp in a bind: shutter their stores or face prosecution, as most hemp products have 0.01–0.3% THC. The rider, linked to a clause blocking D.C. from legalizing marijuana sales, has “obliterated” the local hemp market, costing businesses millions, the suit claims.

Shane Pennington, Capitol Hemp’s attorney, put it bluntly: “Congress cannot use its spending power to override federal law and destroy an entire industry in the nation’s capital.” The company seeks an injunction to stop the Justice Department and D.C.’s government from enforcing the rider, arguing it violates the commerce clause and Congress’ authority over D.C. The contradiction is stark: hemp with 0.3% THC is legal nationwide, but D.C. sellers risk felony charges.

This fight hits hard in D.C., where the hemp industry supports 200 jobs and $15 million in annual revenue (D.C. Chamber of Commerce, 2024). Nationally, hemp sales reached $8 billion in 2024 (Whitney Economics), and 74% of Americans live in states with legal cannabis (Pew Research, 2024). Yet, the rider—championed by Rep. Andy Harris (R-MD)—keeps D.C. in a prohibitionist chokehold, despite 70% of Americans supporting legalization (Gallup, 2024). “This rider is a backdoor attack on hemp and cannabis reform,” said Morgan Fox of NORML, capturing industry fury.

The lawsuit’s timing is strategic. With cannabis rescheduling talks gaining steam and Meta recently lifting marijuana search blocks, hemp advocates smell opportunity. But Harris isn’t backing down, defending the rider on June 20, 2025: “D.C. shouldn’t be a testing ground for drugs.” Capitol Hemp’s case could break the rider’s grip or expose federal overreach. As it heads to court, this David-vs.-Goliath battle is fueling buzz in the cannabis world, with stakes high for D.C.’s hemp future and beyond.

By Jason Beck