Senate Bill Threatens Hemp Industry Collapse: New THC Limits Could Devastate Businesses, US Hemp Roundtable Warns

In a significant development that has sent shockwaves through the burgeoning hemp sector, recent legislative events in the U.S. Senate have sparked dire warnings from industry advocates. The U.S. Hemp Roundtable is sounding the alarm, asserting that proposed language within a government funding bill could lead to the decimation of the nation’s $28.4 billion hemp industry. This controversial provision, which includes strict new limits on THC content in hemp products, passed the Senate on November 10, 2025, as part of a legislative package aimed at ending a government shutdown.

Redefining Hemp, Restricting Products

The core of the concern lies in new language that redefines legal hemp, moving away from the 2018 Farm Bill’s definition which permitted hemp with less than 0.3% delta-9 THC on a dry weight basis. The proposed legislation, if enacted, would impose a cap of just 0.4 milligrams of total THC per container. Industry leaders argue this effectively constitutes a ban on the vast majority of hemp-derived consumable products currently on the market, including popular full-spectrum CBD oils, edibles, and beverages that many consumers rely on for well-being.

This legislative shift threatens to outlaw intoxicating hemp-derived products such as Delta-8 and Delta-10 THC, which have proliferated across the U.S. in convenience stores, gas stations, and online since the 2018 Farm Bill created a federal legal framework for hemp. Proponents of the new language, including some state attorneys general and prohibitionist groups like Smart Approaches to Marijuana (SAM), contend that this measure closes a significant loophole and restores Congress’s original intent for hemp agriculture, prioritizing public health and safety, particularly for minors. They argue that intoxicating hemp products are not what was intended by the 2018 Farm Bill.

Industry Faces Potential Devastation

Jonathan Miller, General Counsel for the U.S. Hemp Roundtable, has been a vocal critic, stating that the industry is being “used as a pawn as leaders work to reopen the government.” The organization warns that this legislation could “wipe out 95% of the industry, shuttering small businesses and American farms.” This impact is estimated to cost states $1.5 billion in lost tax revenue and jeopardize approximately 300,000 jobs nationwide. The Roundtable stresses that over 90% of currently available non-intoxicating hemp-derived products would be rendered illegal under the proposed .4 mg THC per container limit.

While some within the regulated cannabis industry view the ban on hemp THC as a way to eliminate a gray-market competitor and redirect consumers to licensed dispensaries, the broader hemp industry fears a catastrophic collapse. They argue that instead of a ban, responsible, science-based regulations could be implemented to ensure product safety and keep products out of the hands of children, without destroying livelihoods.

Senator Rand Paul’s Fight and Senate Vote

Senator Rand Paul of Kentucky has emerged as a key figure opposing the measure. He introduced an amendment to strike the restrictive hemp language from the appropriations bill, arguing it was extraneous and harmful to Kentucky’s hemp farmers and businesses. Despite his efforts, the Senate voted down his amendment, with senators voting 76-24 to retain the stricter hemp regulations. The overall appropriations package, which includes the hemp provisions, passed the Senate with a 60-40 vote. Notably, Senator Mitch McConnell, a proponent of the 2018 Farm Bill that legalized hemp, has now voiced support for these new restrictions, signaling a significant shift in federal attitudes.

Looking Ahead: The Fight Continues

The legislative package now moves to the House of Representatives for consideration. If passed and signed into law, the new regulations would become effective one year after enactment, granting businesses a grace period. However, the immediate future for the hemp industry remains uncertain as this significant regulatory change looms. The U.S. Hemp Roundtable has vowed to continue fighting the provision, advocating for responsible oversight and expressing concerns that the current proposal risks fueling a dangerous black market rather than ensuring consumer safety.

This ongoing saga highlights the complex interplay between agriculture, consumer products, and evolving news cycles in Washington, D.C., with major implications for a trending American industry.