Minnesota beverage manufacturers and retailers are sounding the alarm over legislation passed by Congress this week that they say would effectively shut down the state’s thriving THC beverage and edible market.

A provision tucked into the bill that ended the lengthy federal government shutdown would ban products containing more than 0.4 milligrams of hemp-derived THC, significantly lower than the 5 milligrams per serving currently authorized under Minnesota state law.

The ban is set to take effect in one year, which beverage producers say sets up a life-or-death countdown for their businesses.

“If this goes through as it’s currently worded, there’s no chance we stay in business past that one-year mark,” said Drew Hurst, president and chief operating officer of Bauhaus Brew Labs in Minneapolis. “(THC beverages) have been both a point of innovation and fun and creativity, but also something that we’ve absolutely needed to be able to continue existing and thriving as a business. If it goes away, we don’t really see a path forward beyond that.”

A ban on THC products would also significantly impact other businesses in the beverage supply chain too, from can manufacturers to distributors to liquor stores, said Matt Kenevan, owner of Dabbler Depot on West Seventh Street in St. Paul.

A variety of hemp-based-THC-infused beverages are sold at Dabbler Depot in St. Paul. Most are made in Minnesota. (Jess Fleming / Pioneer Press)

“All we can do is hope there’s going to be a change that will allow us to do business as usual,” he said. “Why wouldn’t you freak out if someone said you’ve got 12 months to live? That’s what this is.”

While cannabis itself is not federally legal, hemp — a low-THC variety of the plant that’s generally used for industrial purposes — was legalized nationwide by the 2018 Farm Bill, providing a workaround for companies to extract THC from federally legal hemp and make products with effects similar to traditional cannabis.

Minnesota began authorizing the production and sale of THC drinks in 2022 and was among the first states to do so, making the state a pioneer in what’s now a multibillion-dollar nationwide industry. Minnesota has also recently begun licensing cannabis dispensaries through the Office of Cannabis Management.

And as local breweries see beer sales continue to decline in the years since Covid-19, industry leaders say, producing THC beverages has been a vital lifeline for them to remain operational.

“For a lot of us, these are the things we’re filling our tanks with; these are the things we’re keeping people employed with,” said Surly Brewing founder Omar Ansari. “We’ve put millions of dollars into an original facility that probably would’ve closed if not for THC beverages. We used to have 8 people employed there — we have 30 now, and those are all people that have homes, have kids, are paying taxes.”

But in the meantime, until the ban is set to be implemented in late 2026, consumers should know that there’s no change to the existing legal status of producing or purchasing hemp-derived THC beverages, said Christopher Lackner, president and CEO of the national Hemp Beverage Alliance.

The state Office of Cannabis Management also plans to continue licensing businesses, verifying safety and overseeing all THC products including beverages in this interim period, spokesperson Josh Collins said.

“The short term is that it’s business as usual,” Lackner said. “The beverages that are on the shelves today are the beverages that’ll be on the shelf tomorrow and next week and next month and next year.”

Regulations vs. bans

The restriction on hemp-derived THC was a last-minute addition to the federal shutdown bill by Sen. Mitch McConnell, R-Ky., who claimed that unregulated THC products put children at risk.

Hemp industry leaders agree that unregulated THC products are indeed not desirable and argue that a comprehensive regulatory structure, like the one that exists in Minnesota, is a more effective solution than wholesale bans, which might ultimately push customers into black markets.

“Minnesota has shown that with a proper regulatory scheme in place, hemp businesses can operate responsibly and keep products manufactured by bad actors out of the marketplace,” said Matt Schwandt, an attorney focusing on regulatory compliance at Maslon LLP in Minneapolis who previously co-founded and led Bauhaus.

A proposal in the Senate to remove the hemp provision from the shutdown deal, written by Sen. Rand Paul, also a Kentucky Republican, was supported by both Minnesota Sens. Amy Klobuchar and Tina Smith, but it ultimately did not succeed.

“Minnesota has one of the strongest, most carefully regulated systems in the country to allow the sale of hemp products, and the Republican bill that just passed screws all of that up,” Smith said via email Thursday afternoon.

A spokesperson for Klobuchar expressed the lawmaker’s support for federal hemp regulations that account for existing successful THC regulatory systems like the one in Minnesota.

Cole Huschied hoists another case of Bauhaus Brew Labs’ tetra, a hemp-based-THC-infused sparkling water, onto a pallet at the company’s Minneapolis brewhouse on Thursday, July 27, 2023. (Pioneer Press)

This is what brewery leaders, like Hurst at Bauhaus, want to see, too.

“With where we’re at economically, to massively and catastrophically impact an industry that employs hundreds of thousands of people and generates billions of dollars of revenue does not seem like the wisest choice right now,” Hurst said. “We’re all in favor of regulation and legislation around this. We want it legalized at the federal level so we can keep doing what we’ve already proved we can do safely and well.”

Next steps

Following the ban, which appeared to come as a surprise to many in the industry, producers and retailers are rallying to build public awareness and push for hemp-derived THC products to be re-legalized before the provision takes effect in a year.

Related Articles

Disney reaches new deal with YouTube TV, ending a blackout that lasted over two weeks

Government will release September jobs report next week, ending data drought from federal shutdown

Preliminary findings show a fatigue crack caused a Keystone Pipeline oil spill in North Dakota

Bouldering Project opens in St. Paul after Minneapolis success

Wall Street scrambles back from a big morning loss as Nvidia and bitcoin swing

“That came out of nowhere,” said Bob Galligan, director of government and industry relations at the Minnesota Craft Brewers Guild. “But I think we’re feeling more hopeful than we were even a couple days ago, just from seeing some of the outrage and seeing how impactful people are realizing this really is.”

At this point, to allow hemp-derived THC beverages to remain legal in the long-term, federal legislation would be necessary to undo the ban, Schwandt said.

“At the end of the day, if people want these beverages to stay available and accessible, it takes the emails and calls to representatives,” Hurst said. “As doom and gloom as a lot of this is, there’s still a lot that can happen within the next year to change course.”

Property taxes across Minnesota could increase by a total of up to $1 billion next year under approved levy increases from counties, cities and school boards and other taxing districts adopted in 2025.

The increases, payable in 2026 and reported by the state Department of Revenue this week, continue a trend in the 2020s as inflation continues to drive up operational costs, according to groups representing local governments.

Statewide, levies could reach up to $14.6 billion next year, an increase of 6.9% from 2025. The final number is typically lower than the maximum set in preliminary numbers and is used as a starting point for governments as they set final levies.

Final property taxes are set by the end of the year, after local governments calculate estimates for individual parcels and send property owners truth-in-taxation notices sometime in November. Taxing authorities must hold public input meetings before they set final levies on Dec. 29. To find out about truth-in-taxation hearings in your county, check their website.

Minnesota property taxes totaled around $13.7 billion in 2025. In 2020, around $10.9 billion was collected statewide, according to data from the Department of Revenue.

Year-by-year

Final statewide increases in recent years were as follows, state data shows:

• 2025 — 5.6% or $718.6 million.

• 2024 — 6.4% or $775 million.

• 2023 — 5.4% or $626 million.

• 2022 — 3.9% or $431 million.

• 2021 — 2.1% or $226 million.

• 2020 — 4.6% or $501 million.

Federal challenges

Changes at the federal level under the administration of President Donald Trump add another potential cost driver with new eligibility requirements for assistance programs like Medicaid, according to the Association of Minnesota Counties.

“Nuts and bolts” costs like staffing, employee benefits, capital costs and even gas prices are all up, said Matt Hilgart, a lobbyist with the group. But unpredictability and new rules from higher levels of government mean new staffing needs and expenses for counties.

“New mandates coupled with reductions in reimbursements to local governments — particularly counties — are creating this situation where we’re levying now to either hire people to fulfill a mandate that we’ve been told to do by the state or federal government,” he said. “It feels like we’re handcuffed.”

As Trump and a Republican-controlled Congress passed the tax package dubbed the “big beautiful bill” this summer, counties were concerned that they could face financial strain from new administrative requirements on Medicaid and SNAP — the Supplemental Nutrition Assistance Program. Supporters of the bill touted its tax breaks for individuals.

Ramsey County levy

In Ramsey County, which approved a levy hike of 9.75%, or $38.6 million, the biggest drivers of expenses were unfunded mandates from the state of Minnesota, employee compensation and “directing resources to our core services and improving our organizational performance,” County Manager Ling Becker said in September.

About 46% of Ramsey County’s upcoming budget is funded through property taxes. The rest comes from the state, federal and other local governments, plus service fees and other sources. The county raised its levy by 4.75% in 2025, 6.8% in 2024 and 4.5% in 2023.

Statewide, counties raised their levies by an average maximum of 8.1%, up from previous years, when it was around 5% to 6%. Cities raised levies by a projected average maximum of 8.7%, roughly in line with recent trends. Schools raised levies by a projected average maximum of 5.8%.

A levy increase is not a property tax increase. If a person owns property in a community that has seen new development, like businesses or homes, it can offset the levy’s effect on the actual tax bill.

It would be hard for that to happen in Ramsey County since it has limited opportunities for property tax base growth, particularly as the state’s smallest county, Hilgart said. The county also has high social services costs, posing another challenge.

The expected maximum statewide increase in 2026 would be the highest of the 2020s if it holds, but the final increase typically falls anywhere between 8% and 15%.

Last year, the revenue department projected a maximum total increase of $781.6 million for 2025 — 6.1% higher than 2024. It ended up being $63 million lower — a 5.6% increase.

The change was supposed to be even greater between 2023 and 2024, when state officials predicted a maximum levy increase of 7.3% or $882.1 million statewide. It ended up being $104.4 million lower — a 6% increase.

School districts

School districts are concerned about uncertainty with federal funding, according to Kirk Schneidawind, executive director of the Minnesota School Boards Association, though inflation and a growing reliance on local levies for funding play a more significant role.

“Increases from the state have not kept up with inflation,” he said. “To continue programs and opportunities … we’ve got to find ways to generate revenue.”

Minnesota’s 2023 education bill included funding increases of up to 3% to address inflation, but two years is not enough time to fix a long-term problem, Schneidawind explained.

St. Paul Public Schools was one of many districts where voters approved a levy referendum in the Nov. 4 general election. Starting in 2026, the district’s general revenue will increase by $1,037 per pupil for 10 years. It’s expected to raise around $37.2 million for the district.

More information on preliminary property tax levies can be found on the revenue department’s website at revenue.state.mn.us/preliminary-property-tax-levies.

Related Articles

Senate takes first step toward ending the government shutdown

Two more special elections coming to Minnesota Capitol

Government shutdown could become longest ever as Trump says he ‘won’t be extorted’ by Democrats

Better parks? Safer streets? Greener neighborhoods? Students asked to enter “Mayor For a Day” essay contest

Minnesota’s federal workers plead for resolution of government shutdown

Today is Saturday, Nov. 15, the 319th day of 2025. There are 46 days left in the year.

Today in history:

On Nov. 15,1969, a quarter of a million protesters staged a peaceful demonstration in Washington against the Vietnam War.

Also on this date:

In 1777, the Second Continental Congress approved the Articles of Confederation.

Related Articles

Disney reaches new deal with YouTube TV, ending a blackout that lasted over two weeks

Reaching 67 points is creating a ‘6-7’ frenzy at college basketball games across the country

Baby sea otter is reunited with mother in central California after dramatic rescue

Immigrant who allegedly dodged ICE with Wisconsin judge’s help has been deported

Critics warn Florida’s new teaching standards rehabilitate aspects of the anti-communist Red Scare

In 1806, explorer Zebulon Pike sighted the mountain now known as Pikes Peak in present-day Colorado.

In 1864, late in the U.S. Civil War, Union forces led by Maj. Gen. William Tecumseh (teh-KUM’-seh) Sherman began their “March to the Sea” from Atlanta; the campaign ended with the capture of Savannah, Georgia, on Dec. 21.

In 1939, President Franklin D. Roosevelt laid the cornerstone of the Jefferson Memorial in Washington, D.C.

In 1959, four members of the Clutter family of Holcomb, Kansas, were found murdered in their home. (Two men were later convicted of the killings and hanged in a case made famous by the Truman Capote book “In Cold Blood.”)

In 1966, the spaceflight of Gemini 12, the final mission of NASA’s Gemini program, ended successfully as astronauts James A. Lovell and Edwin “Buzz” Aldrin Jr. splashed down safely in the Atlantic after spending four days in orbit.

In 2012, the Justice Department announced that BP had agreed to plead guilty to a raft of charges in the 2010 Deepwater Horizon oil spill and pay a record $4.5 billion, including nearly $1.3 billion in criminal fines.

In 2019, Roger Stone, a longtime friend and ally of President Donald Trump, was convicted of all seven counts in a federal indictment accusing him of lying to Congress, tampering with a witness and obstructing the House investigation into whether Trump coordinated with Russia during the 2016 campaign. The president commuted Stone’s 40-month sentence days before Stone to report to prison and fully pardoned him in December 2020.

In 2022, the world population reached 8 billion, based on United Nations projections.

Today’s Birthdays:

Singer Petula Clark is 93.
Actor Sam Waterston is 85.
Classical conductor Daniel Barenboim is 83.
Pop singer Anni-Frid “Frida” Lyngstad (ABBA) is 80.
Fashion designer Jimmy Choo is 77.
Actor Beverly D’Angelo is 74.
Former “Tonight Show” bandleader Kevin Eubanks is 68.
Actor Jonny Lee Miller is 53.
Actor Sean Murray is 48.
Golf Hall of Famer Lorena Ochoa is 44.
Actor Shailene Woodley is 34.
NBA All-Star Karl-Anthony Towns is 30.

EUGENE, Ore. — The Gophers have played three ranked teams in road, primetime games on three different networks this season. They have not been must-see TV.

In October, Minnesota got blown out by No. 1 Ohio State on NBC and smoked by No. 21 Iowa on CBS. On Friday, the U got pushed aside by No. 8 Oregon 42-13 on FOX.

It’s a good thing the Gophers don’t have another ranked team scheduled — and that Big Ten games are no longer on ABC anymore.

In those three games, Minnesota has been outscored by a combined 125-19, including a never-close loss Friday at Autzen Stadium.

Going into the fourth quarter, the stadium blared “Shout,” with many Ducks’ players joining students and fans in the ubiquitous wedding song dance. During that timeout, Gophers players didn’t leave their huddle along the sideline and maroon-and-gold fans in two end-zone sections sat on their hands.

Minnesota (6-4, 4-3 Big Ten) were a 25-point underdog and that was equaled at halftime with the Ducks up 28-3.

Minnesota didn’t score a touchdown against any of those ranked team until Friday’s third quarter — and 11th quarter overall — with Drake Lindsey finding Javon Tracy on a crossing route for a 10-yard connection.

After trailing 28-3 at the half, that quality drive of 10 plays and 80 yards cut the Ducks’ lead to 28-13. It was the faintest of comebacks.

No. 8 Oregon (9-1, 5-1) didn’t punt until their backups were in the game in the fourth. The Ducks displayed the mismatches they create in speed and strength all night, but especially in the second quarter.

One of the starkest examples of speed came when running back Jordon Davison went untouched on a 39-yard touchdown run. And the most-glaring example of power came when Noah Whittington appeared to be wrapped up by more than half of Minnesota’s defense, but the Ducks tailback kept churning and finished off a 40-yard TD run.

While Oregon continued to roll after a close win at Iowa last week, the Gophers had a bye week to prepare for the Ducks. They dialed up more trick plays on offense, including getting the ball to Koi Perich for the first time in months.

It didn’t matter, with Oregon outgaining Minnesota 510-196, including 332-94 in the first half.

The Ducks scored touchdowns on four of five possessions in the first half. Their only setback was an unforced fumble on a hook-and-ladder trick play that defensive end Karter Menz recovered.

The Gophers had to grind out 14 yards on seven plays to set up Brady Denaburg’s 46-yard field goal. After Whittington’s long TD, Minnesota’s best drive — 67 yards over 13 plays — included three third-down conversions, but they couldn’t get a fourth and settled for a 26-yard field goal.

Oregon wasn’t done, churning out another long touchdown drive, capped by Kenyon Sadiq’s 3-yard touchdown catch.

Related Articles

Gophers AD Mark Coyle points out inconsistency in Michigan State, Michigan punishments

Gophers running back Darius Taylor in line to return vs. Oregon

Women’s hockey: No. 2 Gophers pull away from Bemidji State

How former Gophers have performed in the NFL this season?

LOVB plans to start professional volleyball team in Minnesota