Texas Judge Blocks State Hemp Rules, Keeps Smokable Products on Shelves Until July Trial
A Travis County ruling halts fee hikes of up to 4,000% and a new THC testing standard that threatened to shut down the state’s hemp market overnight.
By CBDWorldNews Editorial Staff | May 5, 2026
A Travis County judge has issued a statewide temporary injunction blocking the Texas Department of State Health Services from enforcing new hemp regulations that took effect March 31. The ruling keeps smokable hemp products on store shelves and halts licensing fee increases that industry groups called a de facto ban on small businesses.
What the Judge Blocked
Judge Daniella DeSeta Lyttle’s May 1 order stops enforcement of three major rule changes that the DSHS enacted at the end of March.
First, the agency had adopted a “total delta-9 THC” testing standard that counts THCA toward the legal 0.3% THC limit. THCA is a naturally occurring compound in raw cannabis that converts to delta-9 THC when heated. Under the old rule, raw hemp flower tested well within legal limits. Under the new standard, most smokable hemp products would fail.
Second, the ruling blocks annual licensing fee increases from $150 to $5,000 for retailers and from $250 to $10,000 for manufacturers. The Texas Hemp Business Council argued these increases represented a 4,000% jump designed to push small operators out of the market.
Third, the injunction stops the state from imposing escalating daily penalties. The blocked section of the rules would have treated each day a violation continues as a separate infraction when calculating fines.
What Stays in Effect
The judge made clear that not all new regulations are suspended. Requirements for child-resistant packaging, a minimum purchase age of 21, and other consumer-safety provisions remain active. The ruling targets the provisions the industry identified as economically destructive, not the public-health measures both sides support.
Industry Response
The Texas Hemp Business Council issued a statement calling the decision a victory for the 320,000-plus jobs tied to the state’s hemp sector.
“This injunction stops what we believe are illegal rules that would have crippled the hemp industry statewide.” — Texas Hemp Business Council
Retailers in cities from Austin to Galveston reported confusion in the weeks between the March 31 rule change and the May 1 injunction. Several shops had already pulled products from shelves or begun the process of paying the higher fees.
Timeline and What Comes Next
The temporary injunction remains in effect until a full trial scheduled for July 27. At that hearing, plaintiffs will ask for a permanent block on the contested rules. Legal analysts expect the DSHS to argue that the THCA testing standard aligns with federal changes coming under the 2026 Farm Bill.
The case arrives at a pivotal moment for Texas hemp. The state ranks among the top five for hemp retail sales, and the outcome could influence how other states approach similar regulatory tightening in the months ahead.
Federal Context
Texas is not acting in isolation. The 2026 Farm Bill, which passed the U.S. House on April 30, adopts a total THC standard at the federal level. That federal standard is set to take effect in November, creating a window where the Texas trial and the federal implementation could collide. If the judge permanently blocks the state rules, Texas retailers may still face a similar standard just months later under federal law.
For consumers shopping for quality-tested CBD products, the ruling means continued access to hemp flower and concentrates at Texas retailers through the summer. Buyers should still verify that any products they purchase carry current third-party lab results confirming THC levels under the existing 0.3% delta-9 standard.
These statements have not been evaluated by the Food and Drug Administration. CBD products are not intended to diagnose, treat, cure, or prevent any disease.
