Texas THC Ban Veto Deepens GOP Rift as 2026 Election Looms

22 June 2025

Governor’s Surprise Move Keeps Hemp-Derived THC Legal—for Now

In a late-night decision that stunned lawmakers and industry leaders alike, the Texas governor vetoed a sweeping bill (Senate BIll 3) that would have banned all consumable hemp products containing cannabinoids other than CBD and CBG—including popular items with federally legal amounts of Delta-8 and Delta-9 THC. The veto, announced just before the June 22 deadline, preserves the legality of a wide range of THC-infused products in Texas, keeping the state’s booming hemp market intact. It also means that Texans who rely on hemp-derived products for pain relief, PTSD, epilepsy, and other medical conditions can continue to access them without facing criminal penalties.

The topic of THC and hemp will continue to be discussed during the special legislative session at the end of July.

A Rare Public Rift Between Top Texas Republicans

The veto has revealed a growing divide between the state’s top two Republican leaders. The lieutenant governor, who led the charge to pass the THC ban, publicly condemned the veto and accused the governor of reversing course without warning. He said he was told the bill would be signed and called the governor’s proposal to regulate THC products like alcohol “a backdoor effort to legalize marijuana in Texas.” While the governor defended his decision by citing constitutional concerns and the likelihood of lengthy legal battles, the lieutenant governor insisted the bill had been carefully vetted and was necessary to protect children and public safety. The disagreement marks one of the most visible and significant fractures between the two leaders, who had otherwise been closely aligned throughout the legislative session.

Re-election Politics and the Role of the Hemp Industry

The timing of the veto has raised questions about political motivation, as both the governor and the lieutenant governor face re-election in November 2026. Hemp and cannabis sectors have become powerful economic forces in Texas, generating more than $8 billion annually and supporting over 53,000 jobs, and leading up to the decision, the governor was lobbied intensely by hemp businesses, veterans’ groups, and parents of medical cannabis patients. Many in the industry argued that banning THC-infused hemp products would not only harm patients and consumers but would also devastate a major segment of Texas' small business economy. Some critics suggest the veto reflects an effort to appease moderate voters and influential donors who favor regulation over prohibition, especially as public opinion in Texas shifts in favor of broader cannabis access.

A New Regulatory Hemp Fight is Set for July

With the veto in place, the future of Texas cannabis laws will now be decided during a special legislative session starting July 21. The governor has called on lawmakers to draft new rules that can survive legal challenges while addressing safety concerns. He’s suggested adopting a regulatory model similar to that used for alcohol—one that could include age limits for purchase, zoning restrictions near schools and playgrounds, product testing standards, and mandatory licensing. However, the lieutenant governor has rejected this approach, claiming it’s unenforceable and would normalize marijuana use. If lawmakers remain at odds, Texas could enter 2026 with no updated rules and an unregulated but flourishing hemp market.

What This Means for the Texas Cannabis Industry

The veto is a short-term win for hemp businesses, patients, and recreational consumers, but the industry is not in the clear. The July session may still result in major changes, especially if lawmakers can find compromise on regulation. For now, thousands of hemp retailers and dispensaries in Texas remain open, and Texans still have access to legal THC products. But those involved in cultivating cannabis in Texas, conducting cannabis testing, or operating in the broader cannabis industry should prepare for new compliance requirements and possible shifts in the law. How the state handles this issue could influence everything from consumer safety to investment and innovation across the Texas cannabis landscape.

Looking Ahead at THC in Texas

As the 2026 gubernatorial race begins to take shape, the future of cannabis regulation in Texas may emerge as a defining campaign issue. With one side pushing for prohibition and the other signaling a move toward structured regulation, voters will likely be asked to weigh in—whether at the ballot box or through their representatives. Until then, the battle over hemp-derived THC is far from settled.