On November 12, 2025, President Donald Trump signed into law the government funding package (H.R. 5371), ending the longest government shutdown in U.S. history - and, in doing so, enacted the most consequential federal change to hemp policy since the 2018 Farm Bill, poised to upend a $28 billion dollar industry.
Found within the Continuing Appropriations and Extensions Act of 2026 is a provision that will recriminalize the vast majority of hemp-derived THC products, including delta-8, delta-10, and potentially even many non-intoxicating CBD products commonly sold nationwide.
Companies across the hemp, CBD, cannabis, wellness, alcohol, and consumer packaged goods sectors should assess business and legal impacts immediately.
Key Provisions
1. New Federal Definition of Hemp (Effective in 12 Months)
The legislation revises the core definition of "hemp" under federal law. Beginning one year from enactment, hemp will only be federally legal if it contains:
No more than 0.4 milligrams of total THC per container
(a shift from the prior 0.3% delta-9 THC dry weight standard)
No cannabinoids-regardless of concentration-that are synthesized or manufactured outside the cannabis plant
No cannabinoids with "similar effects (or marketed as having similar effects)" to THC
(as determined by HHS)
Importantly, "total THC" now includes delta-8, delta-10, other isomers, and any other intoxicating cannabinoids, whether naturally occurring or artificially derived.
This language closely mirrors prior proposals championed by Rep. Mary Miller (R-IL) and supported by anti-legalization advocacy groups such as Smart Approaches to Marijuana (SAM) and, notably, major alcohol industry trade associations and several regulated cannabis trade organizations.
2. Immediate Regulatory Mandates for FDA and Other Agencies
Within 90 days, FDA and relevant agencies must publish:
A list of all cannabinoids known to be naturally produced by the cannabis plant
All naturally occurring THC-class cannabinoids
A list of all cannabinoids with similar effects to THC, or marketed as such
This will effectively create a federal "allowed vs. prohibited" cannabinoid list.
3. Ban on Intermediate or Synthesized Products
The bill expressly prohibits:
Intermediate hemp-derived cannabinoids marketed or sold directly to consumers
Any cannabinoid synthesized or manufactured outside of the plant, or not naturally produced by Cannabis sativa L
This will directly target delta-8, delta-10, and "semi-synthetic" cannabinoids produced from CBD isolate.
4. Enforcement Delayed - but Not for Long
Congress built in a 365-day delay before enforcement begins. Lawmakers including Sen. Chris Van Hollen (D-MD) have already characterized this period as a window to pass alternative legislation establishing a responsible regulatory framework for consumable hemp products.
Industry groups - including hemp advocates and several manufacturers - have announced plans to press for a legislative fix in 2026.
Industry Impact
Hemp & CBD Companies
More than 90% of currently available non-intoxicating CBD products exceed the new 0.4 mg per-container cap, according to the U.S. Hemp Roundtable. Unless reform is enacted next year, many companies would face:
Product removal from interstate commerce
Potential criminal exposure
Disruptions to supply chains and vendor agreements
Loss of access to major retail channels
Cannabis Operators (THC)
State-legal and regulated cannabis (marijuana) companies generally support the move, which would:
Reduce competition from unregulated intoxicating hemp products
Channel intoxicating cannabinoid sales into state-legal cannabis markets
Clarify that intoxicating hemp products are legally equivalent to cannabis
Alcohol Industry
Major alcohol trade groups have strongly advocated for the ban, citing:
Consumer safety concerns
An uneven regulatory playing field
Access by minors
