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President Trump Requests Additional Funds to Regulate CBD & Hemp

Hemp and CBD would get new attention by federal agencies under a 2021 budget plan released this week by President Donald Trump.

Trump’s proposal asks for an additional $5 million next fiscal year for the U.S. Food and Drug Administration to regulate cannabis and its derivatives, including CBD.

The president also asked for more money to oversee hemp farmers.

The budget requests come shortly after legislation was introduced in the U.S. Congress to require federal food and agriculture regulators to treat hemp-derived CBD as a dietary supplement.

That proposal came in response to the increasing popularity of the product and the FDA’s year-long delay in developing regulations.

The FDA last May started reviewing federal regulations for hemp-derived CBD after the 2018 Farm Bill federally legalized hemp and its derivatives. The review has yet to go public.

The $5 million boost in Trump’s budget would help advance the FDA’s regulations for products containing CBD while allowing the agency to enforce the law against making unsubstantiated medical claims about their products, the FDA said in a statement.

“FDA is seeing a significant increase in activity relating to the marketing of unlawful cannabis-derived products, especially those containing cannabidiol, since the Farm Bill passed,” the agency noted.

The $5 million would be divided across different FDA departments, including:

  • The Office of Regulatory Affairs ($2 million).

  • The Center for Veterinary Medicine ($500,000).

  • The Center for Food Safety and Applied Nutrition ($2 million).

  • FDA headquarters ($500,000).

The agency said it would use the money to:

  • Regulate cannabis-derived substances such as CBD, in FDA-regulated products including dietary supplements and when it’s used as an additive in unapproved products such as food.

  • Develop policy.

  • Process product-review applications.

  • Conduct inspections and enforcement.

  • Carry out research.

“FDA must support oversight of increasing numbers of marketed FDA-regulated products containing cannabis-derived substances that may put the public at risk,” the agency pointed out in the budget’s executive summary.

The money would “indirectly increase capacity of FDA’s dietary supplement and food ingredient review programs,” the agency added.

Agriculture Money, Too

The fiscal year 2021 budget also allocates $17 million for the U.S. Department of Agriculture’s nationwide hemp production program.

The agriculture department said it would use the money to:

Regulate licensed farmers under the USDA proposals.Approve state and tribal production plans.

As legal commodity producers, hemp would also see impacts from new funding for USDA programs such as crop insurance, farm loans, conservation programs and research.

The overall 2021 USDA budget includes:

  • Nearly $1 billion for rural connectivity.

  • $200 million to reduce agricultural trade barriers.

  • $8.8 billion for federal crop insurance.

  • $79 million for farm loans.

  • Nearly $4.5 billion for conservation programs and grants.

  • $1 billion for agricultural pest and disease programs.

The final federal spending plan for 2021 must be approved by Congress.

Written By: Laura Drotleff

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