President Trump’s promise to cover CBD via Medicaid in limbo as hemp THC protections stall

OG article by MJ Biz

January 26, 2026

Congressional leaders stripped language from a recent spending bill that would have delayed a looming ban on hemp-derived THC products, creating uncertainty for the $28 billion U.S. hemp industry just before planting season. The removed provision would have provided a temporary reprieve similar to bipartisan standalone bills. Hemp advocates warn this complicates President Trump's December promise to allow health insurance coverage—including Medicaid and Medicare—for non-intoxicating CBD treatments, potentially reimbursing up to $500 for qualifying products. The ban stems from November federal changes redefining hemp to limit THC to 0.4 mg per package, effectively criminalizing many popular hemp-derived items. Lobbyists like Jonathan Miller of the U.S. Hemp Roundtable remain cautiously optimistic about securing an extension through momentum in Congress over coming weeks, despite opposition from figures like Rep. Andy Harris and Sen. Mitch McConnell. Industry players urge action to protect farmers and operators reliant on THC products. Meanwhile, details on the CBD reimbursement program from CMS remain pending, requiring congressional clarification on hemp-derived CBD classification to enable senior access. This setback heightens risks for hemp businesses amid ongoing policy debates.