WASHINGTON D.C. – A crucial federal funding bill has passed a significant hurdle in the Senate, but it carries a provision that could effectively ban most intoxicating hemp-derived cannabinoid products nationwide. This move, championed by lawmakers seeking to regulate the booming market, signals a potential seismic shift for an industry valued in the billions.
The Provision’s Broad Reach
The legislation, as part of the FY2026 Agriculture Appropriations Bill, includes language that would redefine “hemp” at the federal level. The proposed change aims to shift the legal standard from a focus solely on delta-9 tetrahydrocannabinol (THC) concentration to a total THC limit. Under the current definition established by the 2018 Farm Bill, hemp is legally defined as cannabis containing no more than 0.3% delta-9 THC by dry weight. This narrow focus inadvertently allowed for the proliferation of intoxicating hemp-derived products, such as delta-8 THC, delta-10 THC, and THCA flower, which are often synthesized from hemp.
The new provision, spearheaded by U.S. Representative Andy Harris (R-MD) and supported by key figures like Senator Mitch McConnell (R-KY), would expand this limit to encompass all forms of THC, including delta-8, delta-10, and THCA, along with other cannabinoids marketed for their psychoactive effects. This redefinition would include a one-year grace period before taking full effect, potentially outlawing products that contain more than 0.3% total THC or are synthetically derived outside the plant’s natural processes.
Roots in the 2018 Farm Bill
The 2018 Farm Bill legalized hemp as an agricultural commodity, removing it from the Controlled Substances Act and intending to boost rural economies. However, the bill’s definition of hemp, focusing narrowly on delta-9 THC, created a legal gray area. This loophole allowed companies to convert CBD derived from legal hemp into other intoxicating THC compounds, which could then be sold across state lines, often without the stringent regulations, testing, and taxation applied to state-legal marijuana or alcohol.
The market for these hemp-derived products has since surged, creating a trending consumer product category available in convenience stores, gas stations, and online, frequently marketed in child-appealing packaging.
Economic Impact and Stakeholder Divisions
The potential implications for the hemp industry are profound. Estimates suggest the consumable cannabinoid market alone is valued between $13 billion and $28 billion annually. Industry groups like the U.S. Hemp Roundtable warn that this ban could lead to widespread economic disruption, threatening to “collapse” the sector and cost hundreds of thousands of jobs. They advocate for robust regulation rather than outright prohibition, emphasizing that common non-intoxicating CBD products may also be affected due to naturally occurring trace amounts of THC.
Conversely, some cannabis trade groups, such as the National Cannabis Industry Association (NCIA), while generally supporting regulation, view these unregulated hemp THC products as direct competitors to state-licensed marijuana businesses. Many state Attorneys General, including a coalition of 39 signatories, have also urged Congress to close the “loophole,” citing public health and safety concerns, particularly regarding youth access and the lack of consistent product safety standards. Major consumer brands, including Coca-Cola and General Mills, through the Consumer Brands Association, have also lent their support to the ban, likely due to competition from hemp-derived THC beverages.
Legislative Momentum
The provision was included in the Senate’s version of the FY2026 Agriculture Appropriations Bill (H.R. 5371), which recently passed a cloture vote, advancing it towards a potential floor vote. While the bill’s future remains subject to negotiation between the House and Senate, the inclusion of this language signals a strong bipartisan intent to address the unregulated market that has grown since the 2018 Farm Bill.
Looking Ahead
The proposed legislation represents a significant pivot in federal policy toward hemp-derived intoxicating products. As lawmakers finalize the funding package, the debate continues over whether to clamp down entirely on this burgeoning market or to pursue a regulatory framework that balances consumer safety with industry viability. This is a developing story with significant news for the future of the U.S. hemp industry and the cannabis landscape at large.
