Texas Court Blocks Smokable Hemp Ban as Industry Challenges 4,000% Fee Hikes
A temporary injunction puts hemp flower back on Texas shelves, but the real battle heads to trial in July.
By CBDWorldNews Editorial Staff | May 12, 2026
A Travis County judge has granted a temporary injunction blocking the Texas Department of State Health Services from enforcing new rules that effectively banned smokable hemp products statewide. Judge Daniella DeSeta Lyttle’s ruling stops DSHS from applying its revised THC calculation method, which counted THCA toward the legal THC limit for consumable hemp products.
The injunction keeps hemp flower, pre-rolled joints, and THCA-rich products on store shelves until a full trial set for July 27. For the roughly 6,300 hemp businesses operating across Texas, the ruling offers temporary relief from regulations that industry advocates say went far beyond the agency’s legal authority.
How Texas Got Here
Governor Greg Abbott issued an executive order earlier this year directing DSHS to tighten hemp product regulations. The agency responded in March with sweeping new rules that took effect March 31. The most significant change altered how DSHS calculates THC content in consumable hemp products.
Under the old framework, only delta-9 THC counted toward the 0.3% legal threshold. The new rules add THCA, a non-psychoactive cannabinoid that converts to delta-9 THC when heated. Since raw hemp flower naturally contains significant THCA, the calculation change effectively made nearly all smokable hemp products illegal overnight.
DSHS also imposed dramatic fee increases on hemp businesses. Licensing costs jumped by as much as 4,000%, transforming what had been manageable regulatory overhead into a financial barrier that smaller operators could not absorb.
The Industry Fights Back
Hemp businesses filed suit arguing that DSHS exceeded its statutory authority on two fronts. First, they claimed the agency unilaterally changed the legal definition of hemp without legislative approval. Second, they challenged the fee structure as arbitrary and designed to push small businesses out of the market.
The plaintiffs pointed to the immediate economic fallout. One industry consultant estimated the rules threatened more than 40,000 Texas jobs. Businesses that had operated legally for years suddenly found their entire inventory reclassified as illegal product.
“Regulators went beyond their authority by changing what counts as legal hemp and by imposing sharply higher fees that amount to a de facto ban.”
Judge DeSeta Lyttle agreed that the plaintiffs demonstrated a probable right to relief and that the harm from enforcement would be irreparable. The temporary injunction prevents DSHS from enforcing both the THCA calculation method and the fee increases pending trial.
Broader Implications
Texas is not acting in isolation. The state’s approach mirrors the federal shift toward total THC calculations that takes effect in November. But the Texas case raises a distinct legal question: can a state health agency redefine a product category through rulemaking alone, or does that require action from the legislature?
That question matters beyond Texas. Several other states have adopted or are considering similar regulatory approaches. A ruling at trial could influence how aggressively other state agencies pursue hemp restrictions through administrative action rather than legislation.
The timing also intersects with the federal picture. If Sen. Rand Paul’s Hemp Safety Enforcement Act passes the Senate, states like Texas could theoretically opt out of the federal ban while maintaining their own regulatory framework. That would create a patchwork where the rules governing hemp products vary significantly depending on where a business operates.
What Happens at Trial
The July 27 trial will address whether DSHS had the legal authority to implement the THCA counting method and the fee increases. Hemp industry attorneys plan to argue that the legislature, not an administrative agency, must approve changes that fundamentally alter what products can be legally sold.
DSHS is expected to counter that its rules fall within existing statutory authority to protect public health and that the THCA calculation reflects a more scientifically accurate measure of a product’s psychoactive potential.
For now, Texas hemp businesses can resume selling smokable products. But the uncertainty is taking its own toll. Distributors report that some retailers remain hesitant to restock shelves, worried that the injunction could be modified or that trial could go against the industry.
Consumers looking for lab-tested hemp products should verify that any purchases come with current certificates of analysis. The regulatory upheaval has created opportunities for low-quality products to enter the market as enforcement resources shift to the legal fight.
The Texas hemp industry now waits for July, aware that the outcome could reshape how states regulate hemp products nationwide. The broader federal fight over the Farm Bill adds another variable to an already volatile landscape.
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.
