Court Blocks Texas Hemp Regulations, Temporarily Preserving Market Access for Consumable Products

A recent legal development in Texas is drawing significant attention from stakeholders across the hemp and broader nutraceutical industries, as a Temporary Restraining Order (TRO) has been granted in a lawsuit challenging new state-level restrictions on consumable hemp products, an April press release explains.¹

The ruling, issued by a Travis County district court judge, temporarily halts enforcement of administrative rules introduced by the Texas Department of State Health Services (DSHS) and the Texas Health and Human Services Commission (HHSC). These rules, which took effect March 31, 2026, seek to impose stricter limitations on the manufacture and sale of consumable hemp products (CHPs).

Details of the Lawsuit

The lawsuit was filed by a coalition of hemp businesses and advocacy organizations, including the Texas Hemp Business Council (THBC) and Hemp Industry & Farmers of America (HIFA), alongside several Texas-based manufacturers and retailers. The plaintiffs argue that the new rules effectively reinterpret statutory definitions established under Texas law in 2019.

“This case is about protecting the integrity of Texas law,” stated Cynthia Cabrera, president of the THBC, in an April 8 news release.² “Lawmakers carefully debated hemp policy and chose not to change the statutory THC standard during the 89th Legislature in 2025. State agencies cannot override the decision by regulation. Our members support reasonable, lawful regulation, but regulation must follow the Constitution and the statutes the Legislature enacted.”

According to the complaint, the agencies’ rulemaking bypasses the legislative process and introduces restrictions that could harm hemp farmers, businesses, and consumers by curtailing in-state hemp production and the availability of hemp-derived products. According to THBC, the rules from the HHSC and DSHS create a new formula for total tetrahydrocannabinol (THC) concentration that effectively makes several previously lawful products unlawful, disrupts hemp manufacturing in state as well as interstate commerce, and significantly increases license fees and registration fees, with other new restrictions established as well.

“Texas farmers and processors built their businesses around the law as written,” stated Brian Swenson of HIFA. “These rules upend that framework by substituting an agency-created THC standard and blocking the lawful movement of hemp for processing. When agencies cut off the farm-to-market pipeline without legislative approval, it puts entire operations at risk.”

THBC adds that since 2019, the Texas hemp industry has generated $10 billion in annual economic activity.

The Temporary Restraining Order

In practical terms, the TRO allows hemp businesses in Texas to continue operating under the current regulatory structure while the case proceeds. An April hearing will further examine the legality of the contested rules and determine whether longer-term injunctive relief is warranted.

“Today is a big step forward in the battle to protect the legal hemp industry in Texas,” said David Sergi, attorney for the plaintiffs. “The Temporary Restraining Order means that our fight will continue. Local hemp businesses can continue to operate under the current law. On April 23, 2026, the legal team will move forward and present its case in court to halt rules that would effectively end the in-state production of hemp and the sale of hemp products—items the Legislature chose not to ban during recent legislative and special sessions.”

From an industry perspective, the case underscores ongoing tensions between regulatory agencies and hemp stakeholders over product definitions, safety standards, and market access. Hemp-derived ingredients, including cannabinoids and other bioactives, are increasingly incorporated into dietary supplements and functional products.

The upcoming court hearing is expected to provide further insight into how courts may balance agency authority with legislative mandates in shaping the future of the hemp market.

This article was created with assistance from AI. The content has been reviewed and edited by Erin McEvoy, Associate Editor. For more information on the extent and nature of AI usage, please contact us.

References

1. Lampe K. Temporary Restraining Order Granted in the Lawsuit Brought by Leaders of the Hemp Industry against Texas Department of State Health Services, Texas Health and Human Services Commission, and Texas Attorney General Ken Paxton. April 10, 2026. Accessed April 17, 2026.
2. Texas Hemp Business Council. Press Release: Texas Hemp Industry Files Lawsuit Challenging New State Rules That Rewrite Hemp Law. April 8, 2026. Accessed April 17, 2026. https://texashempbusinesscouncil.com/press-release-texas-hemp-industry-files-lawsuit-challenging-new-state-rules-that-rewrite-hemp-law/