GEORGIA — Leaders in Georgia’s fast-growing hemp industry say they are bracing for severe fallout after new federal regulations were quietly added to the short-term funding package that reopened the government.

The measure includes a reversal of policies first enacted seven years ago that would sharply restrict the amount of THC allowed in hemp-derived products. Attorney Tom Church says the change could upend an industry that has flourished since the 2018 Farm Bill.

“The bottom line is they’re trying to throw the kitchen sink in different ways to ban all intoxicating hemp products,” Church said. He warns the provision would re-criminalize products made legal under the Farm Bill and could force widespread closures.

“If this new law goes into effect, the vast majority of hemp products on the market will become banned and you’ll see a widespread closure of stores, shelves are going to be emptied.”

Those impacts could hit Georgia particularly hard. A UGA study estimates the hemp industry generates more than $150 million for the state’s economy. Nationally, hemp is a $28-billion market, and analysts at Whitney Economics say more than 300,000 jobs nationwide could be at risk.

In Atlanta, business owner Omari Anderson says the changes could devastate his THC-infused beverage company. “It’s a little devastating. Eighty-two percent of our income comes from the hemp side,” he said. The bill bans products containing more than 0.4 milligrams of THC, but most of Anderson’s items contain 10 milligrams, pushing nearly his entire product line out of compliance.

“The way it’s written, we won’t be able to sell virtually any products,” he said. Anderson says he may be forced to relocate to a state where recreational cannabis is legal.

Church says the conflict between state rules allowing hemp products and new federal limits leaves business owners stuck. “Businesses have to make a decision; state law says I can do it, federal law says I can’t.”

The restrictions would take effect one year from now, unless changes are made before then. Industry experts warns this could wipe out 95% of the hemp market.

WSB Radio’s Jonathan O’Brien contributed to this story.