North Carolina
Impending federal hemp ban puts North Carolina’s $1B industry at risk | Port City Daily
NORTH CAROLINA — A sweeping change tucked into the federal government’s latest funding package is poised to wipe out most of North Carolina’s hemp industry, banning nearly all cannabinoid products and leaving farmers and retailers across the state facing an uncertain future.
READ MORE: Hemp under threat: NC lawmakers debating crackdown, business owners push back
ALSO: NC legislators propose recreational marijuana bills in Senate and House
Under a provision tucked into the bill, most hemp-derived products sold in North Carolina — including Delta-8, Delta-10 and THCA flower — will become illegal by November 2026. The change rewrites the federal definition of hemp to exclude cannabinoids that are synthesized or modified outside the cannabis plant, closing loopholes that fueled the rise of these products and effectively wiping out the retail market that now dominates the state’s industry.
The measure was folded into the 394-page Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act of 2026 — the funding package which ended the 43-day federal government shutdown when it was signed into law Nov. 12.
Although the restrictions do not take effect until the end of next year, the language marks a major shift in national cannabis policy. Championed by Sen. Mitch McConnell (R-KY), the provision aims to close gaps left by the 2018 Farm Bill, which defined hemp solely by its Delta-9 THC concentration.
McConnell justified the ban by citing rising public-health incidents, pointing to statistics from the Kentucky Poison Center showing cannabis-related calls more than doubled over five years. Nearly 40% of the center’s THC-related calls in 2024 involved children under 12, with most hospitalizations linked to THC gummies marketed in packaging resembling candy.
The 2018 Farm Bill allowed hemp to be grown and sold so long as it contained no more than 0.3% Delta-9 THC by dry weight. Because the federal definition focused on just one cannabis compound, manufacturers exploited two glaring omissions. The first was the law ignored other psychoactive compounds like Delta-8 and Delta-10 THC, which are chemically similar to Delta-9 and produce a high for users.
Delta-8 and Delta-10 THC compounds can be created by extracting CBD — which is non-intoxicating — from hemp and chemically converting it into a psychoactive substance. The second gap in the Farm Bill was the law’s failure to regulate THCA (tetrahydrocannabinolic acid), the raw, non-intoxicating compound found in hemp flower. THCA becomes illegal Delta-9 THC only when heated, meaning retailers could legally sell flower functionally identical to cannabis sold in dispensaries in states where the drug is legalized.
Any cannabinoid synthesized or manufactured outside the cannabis plant is explicitly removed from the definition of legal hemp, outlawing most Delta-8 and Delta-10 products, along with many of the processes used to isolate and refine CBD.
The legislation also imposes an extremely strict limit on finished consumer products: anything intended for human consumption will be illegal if the container holds more than 0.4 milligrams of total THC. Commonly consumed low-dose gummies typically contain 5 to 10 milligrams of THC per gummy so a standard package of 10 gummies containing 50 to 100 milligrams of total THC, rendered illegal under the new law.
According to Phil Dixon Jr., professor at the UNC School of Government and expert in cannabis law, the new federal language represents a “radical reworking of the federal definition of hemp to effectively eliminate everything but hemp oils and hemp seeds.”
He said the law is so broad because it doesn’t just target finished intoxicating products, it criminalizes many of the processes used to make otherwise legal hemp extracts. Widely sold CBD products often require extracting and isolating cannabis compounds which results in THC byproducts. Under the new definition, the process could make the entire product unlawful. Thus, non-intoxicating CBD items — gummies, oils, and lotions — would also fall under the ban.
“I think it will drastically shrink the market all around and there will be way less products that are legal under federal law,” Dixon said. “That presumably means less people will be doing it, and there will be less of a supply all around and so less demand from the producers and the farmers.”
Dixon described the federal drafting as “pretty airtight,” noting Congress appears to have erred on the side of “over-inclusion,” sweeping in Delta-8, THCA, and newer compounds such as Hexahydrocannabinol (HHC) to ensure no future chemical workaround remains possible.
HHC, a semi-synthetic cannabinoid, often derived from CBD, is believed to fall under the ban because the law excludes any cannabinoids “synthesized or converted” outside the plant.
Focusing on intoxicating products, the federal ban does not target agricultural hemp grown for fiber, grain, textiles, or industrial uses. However, it is still expected to affect the farming sector because the high-profit consumable cannabinoid market largely subsidizes the much lower-value industrial hemp market.
North Carolina has 858 licensed hemp growers, according to state agriculture licensing records. A 2023 economic impact study on the state’s hemp industry estimated the sector supports nearly 9,000 jobs and generates between $759 million and $1.1 billion in annual sales, with the majority of revenue coming from hemp-derived cannabinoid products.
Earlier this year, state lawmakers attempted to regulate hemp with House Bill 328, which proposed age limits, testing requirements, and a product licensing system. Though it had strong support from the hemp industry — due to creating standards without banning products — it didn’t move forward. Senate lawmakers rewrote the bill into a much stricter measure mirroring the new federal approach, banning intoxicating hemp-derived cannabinoids, restricting chemical conversion processes used to make Delta-8 and similar products, and limiting total THC in consumer goods. Negotiations between the chambers ultimately stalled.
Industry organizations such as the American Healthy Alternatives Association have opposed the new federal language, contending an outright ban on intoxicating hemp cannabinoids will shutter small businesses and eliminate a profitable industry.
Despite the lack of regulation, hemp retailers continued to expand across the state, with more than 100 businesses operating in North Carolina. Wilmington alone now has dozens of hemp dispensaries, smoke shops, vape shops, and convenience stores selling THCA flower and Delta-8 and Delta-10 THC products permitted under the 2018 Farm Bill. Under the new federal restrictions, hemp consumable stores will soon face decisions about whether to shut down, liquidate stock, attempt to pivot to non-intoxicating products, or risk federal enforcement after November 2026.
Dixon emphasized that even if some businesses hope to continue selling products under North Carolina’s permissive state laws they will face multiple obstacles.
Because the new federal definition makes most hemp products controlled substances, banks will be legally unable to accept proceeds from sales. Hemp producers, wholesalers, and retailers would also be unable to ship products across state lines, disrupting the supply chain. In addition, businesses would be subject to federal controlled-substance tax provisions normally applied to illicit drug operations.
“Even putting aside the risk of a criminal prosecution by the feds, there are these very practical problems, like: Can you ship it? Can you get a bank account for your business?” Dixon said. “If this is your business, are you exposed to some new and different tax liability because of this change? I think all of those are very possible.”
Dixon noted federal enforcement remains unpredictable. While the Department of Justice has not prioritized raids on state-licensed marijuana dispensaries in places like Colorado, the protection these businesses enjoy is not permanent. It exists only because of a Congressional provision attached to a federal spending bill — known as a budget rider — preventing the use of federal funds to take action against state-compliant marijuana operations. Since a budget rider must be renewed annually by Congress, the shield could be removed at any time. No such agreement currently exists for hemp.
Marijuana and hemp remain legally distinct substances at the federal level — marijuana is defined as any cannabis with more than 0.3% Delta-9 THC, while hemp is defined as anything under that limit. Even if North Carolina were to legalize recreational or medical marijuana, Dixon said it would not resolve the conflict for hemp specific businesses.
“Us changing our marijuana laws wouldn’t really change this,” he said. “Perhaps there could be a similar kind of agreement that says, ‘If you’re operating consistent with your state law, we’re not going to mess with you.’”
In the coming year, Dixon expects some hemp businesses will begin phasing out operations or selling off inventory, while others may hold out in hopes the legal landscape changes.
“My assumption is that you will see businesses starting to wind down the closer we get to November,” he said. “But I also imagine that there will be people who hold out and say, ‘I’m committed to this industry. I think I do good work, and I think there’s a market for my products.’ We’ll just have to see. If I was their attorney, I would say you need to be concerned.”
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A proposal to limit property tax increases is set to go before state lawmakers Tuesday — an effort that could culminate with North Carolinians voting on the issue as early as this year.
The state House of Representatives’ Finance Committee is scheduled to discuss a proposed state constitutional amendment restricting how much city and county governments could raise property taxes each year.
Amendments to the state Constitution must be approved by North Carolina voters. If the idea is approved by a supermajority of legislators, North Carolinians would be asked to decide the issue through a ballot vote, likely in November.
The legislation, House Bill 1089, doesn’t outline a limit for property tax increases. It calls on state lawmakers to come up with specific restrictions at a later date — if the referendum is approved by voters.
The bill is part of a broader push by legislators in the Republican-controlled General Assembly to address affordability issues ahead of the midterm elections.
Republicans in the state Senate last week approved a bill that would temporarily block county governments from applying appraisals conducted during this calendar year to property tax bills. Reappraisals often lead to higher property tax bills. Republican Senate leader Phil Berger has referred to that proposal as a “moratorium” that could bring temporary relief to taxpayers in a number of counties scheduled to reappraise properties this year — including Guilford and Harnett. Berger has framed the idea as simply buying time for the legislature to come up with more sweeping reforms.
The proposed constitutional amendment moving forward in the House could be that more sweeping idea, although it’s unclear if the Senate will go along if the idea passes the House.
Tax reduction has been a stated goal of Republican lawmakers for decades, but the proposed reappraisal moratorium and constitutional amendment are not guaranteed to pass. Neither Berger nor House Speaker Destin Hall has committed to supporting the other chamber’s idea for addressing rising property taxes.
Democrats have expressed skepticism over both plans. Senate Minority Leader Sydney Batch, D-Wake, chided Senate Republicans last week for failing to take up an amendment to Berger’s bill that would have lowered the state’s income threshold to qualify for property tax exceptions.
Rep. Lindsey Prather, D-Buncombe, said Monday — during a press conference calling for higher taxes on millionaires — that the property tax changes being proposed by GOP lawmakers seemed aimed more at gathering political credit than solving a problem.
“We can be the quote-unquote ‘good guys’ down here in Raleigh and say we’re going to lower your property taxes,” Prather said. “But all that means is that the local governments are going to have to be the ‘bad guys’ to raise revenue in other ways.”
Closing a loophole
The House Finance committee on Tuesday is expected to consider a proposal that could help municipal governments recoup more property tax revenue. The committee is expected to discuss House Bill 1042, which would tighten rules for nonprofit organizations that receive property tax exemptions.
The state currently allows certain organizations to avoid paying property taxes if they use their property entirely for charitable purposes and are not run for profit — a law that kept nearly $750 million worth of property out of Wake County’s tax base in 2025. The proposed change seeks to winnow down the list of who qualifies, especially nonprofits that provide affordable housing for low- or moderate-income people.
North Carolina
North Carolina (NCHSAA) High School Softball 2026 State Playoff Brackets, Matchups, Schedule – May 11
The 2026 North Carolina high school softball state playoff brackets are out, and High School On SI has all eight brackets with matchups and schedules for every team.
The first round begins on May 5, and the playoffs will culminate with the NCHSAA state championships being played May 27-30 at Duke University in Durham.
2026 North Carolina High School Baseball State Tournament Schedule
May 5: First Round
May 8: Second Round
May 12: Third Round
May 15: Fourth Round
May 19-23: Regionals
May 27-30: State Championships
North Carolina (NCHSAA) High School Softball 2026 State Playoff Brackets, Matchups, Schedule – May 11
CLASS 1A BRACKET (select to view full bracket details)
Third Round – May 12
No. 1 Bear Grass Charter vs. No. 5 Vance Charter
No. 3 East Columbus vs. No. 2 Northside – Pinetown
No. 1 Robbinsville vs. No. 5 Falls Lake Academy
No. 6 Bethany Community vs. No. 2 Oxford Preperatory
Third Round – May 12
No. 1 North Duplin vs. No. 8 Camden County
No. 5 Rosewood vs. No. 4 East Carteret
No. 3 Perquimans vs. No. 11 Pamlico County
No. 10 Franklin Academy vs. No. 2 Manteo
No. 1 South Stanly vs. No. 9 East Wilkes
No. 5 South Stokes vs. No. 4 Starmount
No. 3 Swain County vs. No. 6 Murphy
No. 7 Highland Tech vs. No. 2 Roxboro Community
Third Round – May 12
No. 1 Midway vs. No. 9 Providence
No. 12 Wallace-Rose Hill vs. No. 4 Heide Trask
No. 3 Farmville Central vs. No. 11 Ayden – Grifton
No. 10 Northwood vs. No. 2 McMichael
No. 1 West Lincoln vs. No. 8 Union Academy
No. 5 Draughn vs No. 4 Pine Lake Preperatory
No. 3 West Davidson vs. No. 11 East Surry
No. 7 Walkertown vs. No. 2 West Wilkes
Third Round – May 12
No. 1 Randleman vs. No. 9 Nash Central
No. 5 Bunn vs. No. 4 East Duplin
No. 3 Southwest Onslow vs. No. 6 Roanoke Rapids
No. 7 Ledford Senior vs. No. 2 Central Davidson
No. 1 West Stokes vs. No. 8 Forbush
No. 5 Pisgah vs. No. 4 West Stanly
No. 19 North Surry vs. No. 11 Foard
No. 10 Mount Pleasant vs. No, 2 Bunker Hill
Third Round – May 12
No. 1 Southeast Alamance vs. No. 8 C.B. Aycock
No. 5 Seaforth vs. No. 4 Rockingham County
No. 3 Eastern Alamance vs. No. 6 West Carteret
No. 7 South Brunswick vs. No. 2 Southern Nash
No. 1 Enka vs. No. 9 Oak Grove
No. 5 Crest vs. No. 13 West Rowan
No. 3 North Davidson vs. No. 6 Franklin
No. 10 East Rowan vs. No. 2 North Lincoln
Third Round – May 12
No. 1 Union Pines vs. No. 9 South Johnston
No. 5 South View vs. No. 4 Gray’s Creek
No. 3 J.H. Rose vs. No. 6 Harnett Central
No. 7 Triton vs. No. 2 West Brunswick
No. 1 Kings Mountain vs. No. 8 Charlotte Catholic
No. 5 Alexander vs. No. 13 T.C. Roberson
No. 3 Piedmont vs. No. 6 Central Cabarrus
No. 10 A.C. Reynolds vs. No. 2 South Caldwell
Third Round – May 12
No. 1 D.H. Conley vs. No. 8 Wake Forest
No. 5 Purnell Sweet vs. No. 4 Cleveland
No. 3 Heritage vs. No. 6 Topsail
No. 7 South Central vs. No. 2 New Bern
No. 1 Weddington vs. No. 8 Mooresville
No. 5 A.L. Brown vs. No. 4 Hickory Ridge
No. 3 East Forsyth vs. No. 11 Porter Ridge
No. 7 Ronald Reagan vs. No. 2 South Iredell
Third Round – May 12
No. 1 Willow Spring vs. No. 4 Hoggard
No. 3 E.A. Laney vs. No. 2 Cornith Holders
No. 1 Providence vs. No. 4 Hough
No. 3 West Forsyth vs. No. 2 Apex Friendship
More Coverage from High School on SI
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North Carolina
Perspective | What North Carolina gets right about workforce: Progress beyond politics
Across the country, workforce development is often framed as a policy challenge. In North Carolina, we’ve come to understand it as something more fundamental: a shared responsibility between educators and employers that works best when it rises above politics. It is a nonpartisan priority with bipartisan support — and a clear focus on outcomes.
North Carolina’s approach to workforce and talent development offers a different model — one grounded in collaboration, consistency, data, and a relentless focus on student and employer needs.
Over the past several years, our state has aligned around an ambitious goal: ensuring that 2 million North Carolinians ages 25-44 hold a high-quality credential or postsecondary degree by 2030. myFutureNC is a nonpartisan, nonprofit organization, led by a bipartisan Board of Directors, that was created to champion this work.
This goal is not owned by a single administration or political party. It is the state’s attainment goal — codified in law with bipartisan support and signed by the governor — to ensure North Carolina remains economically competitive now and into the future. The work is guided by leaders across business, education, policymakers, and philanthropy.
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This kind of alignment doesn’t happen by accident. It requires trust, discipline, and a willingness to prioritize long-term impact over short-term wins — placing the needs of students and employers above the silos that often define education and workforce systems.
North Carolina’s leaders don’t agree on everything, and unanimity is not what makes this work. There is broad agreement on a set of essential truths: Talent is the top driver of economic development. Education fuels economic prosperity, public safety, and healthier communities. Having a robust educational system and an educated population is one of our state’s greatest assets. Economic mobility matters. And preparing people for meaningful work benefits everyone.
This alignment is delivering results. North Carolina has been named the No. 1 state for business three out of the past four years and ranks No. 1 for workforce — reinforcing what’s possible when leaders stay focused on shared priorities.
This strong foundation has enabled progress in areas that often stall in partisan debate. Through strategic policy and philanthropic investments, the state has expanded pathways into high-demand careers, strengthened connections between education and industry, and increased access to work-based learning opportunities, including apprenticeships and pre-apprenticeships.
That same foundation is shaping how policy is developed in real time. The proposed Workforce Act of 2026 reflects North Carolina’s cross-sector approach — bringing together business and education leaders, policymakers, and philanthropists to strengthen pathways into high-demand careers and expand access to work-based learning. Rather than introducing a new direction, this Act builds on what is already working, demonstrating how alignment can translate into coordinated action.
The bipartisan-led Governor’s Council on Workforce and Apprenticeships puts this approach into practice. Building on the state’s existing foundation, the council brings together leaders from industry, education, and government to strengthen coordination across the workforce system. Its value lies not in setting a new direction, but in reinforcing and accelerating a shared one.
This is what it looks like to build systems designed to last. Workforce development is not a one-year initiative or a single funding cycle — it is a long-term investment in people, communities, employers, and the educational infrastructure that supports them. North Carolina’s progress is rooted in structures that bring partners together consistently, align efforts across sectors, and create continuity beyond political cycles.
By embedding collaboration into how the work gets done — not just what gets prioritized — the state has created a model that can evolve over time while staying focused on its goals.
Work remains to be done. Gaps in attainment persist, and ensuring opportunity reaches every corner of the state will require continued focus and innovation. But North Carolina’s significant progress and continued success being No. 1 nationally in many related categories demonstrates what is possible when leaders choose partnership over partisanship.
At a time when it’s easy to focus on what divides us, North Carolina offers a reminder: Some of the most important work we do — preparing people for the future of work and ensuring employers have access to skilled talent — is our north star and unifying force.
And in our shared goal of 2 million by 2030, we are not just building a stronger workforce. We are building a stronger state — for today and for generations to come.
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