Texas Hemp Industry Granted Temporary Reprieve From THC Ban

Judge pauses new state regulations that threatened to shut down most of the state's smokable hemp businesses.

Apr. 11, 2026 at 11:07pm

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A high-end, photorealistic studio still-life photograph featuring a collection of premium hemp flower buds, hemp oil tincture bottles, and hemp-derived CBD gummies arranged elegantly on a clean, monochromatic seamless background, conceptually representing the abstract corporate strategy and regulatory challenges facing the Texas hemp industry.As Texas regulators attempt to tighten restrictions on the state's booming hemp industry, a legal battle over the future of smokable hemp products hangs in the balance.Dallas Today

A Texas judge has temporarily blocked new state regulations that would have effectively banned the sale of smokable hemp products, granting a temporary restraining order sought by hemp businesses. The rules, which were set to take effect this week, would have imposed strict THC limits and onerous testing requirements that industry leaders say would have wiped out 80-90% of the state's smokable hemp market. The judge's order puts the regulations on hold for two weeks, with a key court hearing scheduled for April 23 to determine if the pause should be extended.

Why it matters

The Texas hemp industry has grown rapidly in recent years, providing jobs and economic opportunities for thousands of residents. The proposed regulations threatened to devastate this emerging market, potentially forcing many small businesses to shut down. The legal battle highlights the ongoing tensions between state lawmakers, regulators, and the hemp industry over the appropriate level of oversight for these products.

The details

The new regulations from the Texas Department of State Health Services would have limited the amount of THC allowed in smokable hemp products to just 0.3%, a level industry leaders say is unworkable. The rules also included stringent testing requirements that businesses say would have made it nearly impossible to legally produce and sell these products in the state. An attorney involved in the lawsuit argued the state was trying to "cut the heart out" of the smokable hemp market through these regulations.

  • On April 7, 2026, a Texas judge granted a temporary restraining order blocking the new state regulations from taking effect.
  • A key court hearing is scheduled for April 23, 2026 to determine if the temporary pause on the regulations should be extended.

The players

Shan Claudio

Owner of the Dallas Hemp Company, a business that sells smokable hemp products in East Dallas.

David Sergi

An attorney involved in filing the lawsuit that led to the temporary restraining order against the new state regulations.

Texas Department of State Health Services

The state agency that proposed the new regulations limiting THC levels and imposing strict testing requirements on smokable hemp products.

Lieutenant Dan Patrick

The Texas Lieutenant Governor who has pushed for more restrictions on hemp products, even after Governor Greg Abbott rejected an outright ban.

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What they’re saying

“So they're saying, 'oh, we got to regulate this. We're going to regulate this.' But then they try to put us out of business. And made the regulatory system so egregious that it was essentially banned.”

— Shan Claudio, Owner, Dallas Hemp Company

“With the testing requirements and the manufacturing requirements, they basically made smokable hemp almost impossible to produce legally and within the parameters, and so it cut out 80 to 90% of the market for smokable hemp.”

— David Sergi, Attorney

What’s next

The judge's temporary restraining order only blocks the new state regulations for two weeks. A key court hearing is scheduled for April 23, 2026 to determine if the pause should be extended further or if the regulations can go into effect.

The takeaway

This legal battle highlights the ongoing tensions between Texas regulators, lawmakers, and the state's rapidly growing hemp industry. While the temporary reprieve provides some relief for hemp businesses, the long-term future of smokable hemp products in Texas remains uncertain pending the outcome of the upcoming court hearing.