Virginia hemp THC operators sue to block ban as North Carolina hemp THC ban looms

A hemp THC ban may be coming to North Carolina after authorities in Virginia informed hemp THC merchants of new rules coming into effect later this month.
Published: August 4, 2026

Hemp-derived THC retailers and producers in North Carolina rallied on Tuesday to dissuade state lawmakers from passing a ban on the popular products – an estimated $4 billion industry and, for now, the only non-tribal avenue for THC access in the state.

Meanwhile, seven hemp companies in Virginia filed suit in federal court late last week to block enforcement of an upcoming law in that state that they say would criminalize hemp THC.

There is still no legal cannabis access in North Carolina outside of tribal lands. Medical cannabis is legal in Virginia, and adult-use sales are scheduled to begin next summer.

Are hemp THC sales legal in Virginia?

According to The Outlaw Report, the Virginia hemp operators’ July 31 complaint, filed in U.S. District Court in the Western District of Virginia, targets enforcement of House Bill 30.

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That law, which state legislators inserted into a budget bill, eliminated a provision that allowed some hemp-derived cannabinoid products to contain more than 2 milligrams of THC, according to The Outlaw Report.

A budget compromise is also how a standoff over the launch of adult-use cannabis sales between Gov. Abigail Spanberger, who is named in the suit, and state lawmakers was resolved.

Under that deal, cannabis sales will begin July 1, 2027.

What are the new THC limits for hemp products in Virginia?

Shortly after the budget went into effect on July 1 of this year, state agriculture officials informed hemp operators that hemp products cannot contain more than 2 mg of THC per package starting on Aug. 15, according to The Outlaw Report.

That’s not enough time for merchants to prepare and respond appropriately, according to Travis Lane, owner and founder of Northern Virginia Hemp & Agriculture (NOVA Hemp).

According to the suit, NOVA Hemp already lost a major distribution deal for a hemp beverage line in which it had invested $120,000.

The lawsuit claims violations of the U.S. Constitution’s due process and equal protection guarantees and asks a judge to find the new laws unconstitutional.

Is North Carolina banning hemp THC sales?

The Virginia legal fight over hemp THC might serve as a prelude for North Carolina.

In Raleigh on Tuesday, hundreds of hemp operators, customers and advocates piled into the state Capitol to convince lawmakers to ditch a plan to ban most hemp THC products, NCNewsline reported.

The protest was meant to dissuade the House of Representatives from passing House Bill 328, which passed the state Senate last month.

That law would bring North Carolina hemp rules in line with a new federal redefinition of hemp, set to take effect in November, that criminalizes the sale of hemp products with more than 0.4 milligrams of THC per container.

In response, law enforcement and Republican lawmakers held their own assembly to rally support for the ban, according to NCNewsline.

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It’s unclear whether movement at the federal level would compel state lawmakers to reconsider the North Carolina hemp THC ban.

Despite pleas from the Trump administration to revisit the incoming restrictions on hemp THC products – and several proposals that would let states opt out or impose federal regulations, including taxes on hemp THC sales – there’s been no movement in Washington.

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