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20 November 2025

Hemp Industry Changes In Federal Legislation

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Before the US Senate and House moved to reopen the federal government, the matter of "intoxicating hemp products" became a sticking point in their efforts...
United States Cannabis & Hemp
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Before the US Senate and House moved to reopen the federal government, the matter of “intoxicating hemp products” became a sticking point in their efforts to end the longest government shutdown in U.S. history.

On November 10, 2025, the Senate passed an appropriations package which contains a short-term continuing resolution to fund the government and end the shutdown, along with a full year agriculture appropriations bill for fiscal year 2026. The new legislation includes a significant change to the federal definition of hemp and closes what many have perceived to be an unintended loophole in the 2018 Farm Bill for “intoxicating hemp products." These products have fueled the growth and expansion of the consumable, topical and inhalable hemp products market over the past few years. In addition, the Senate package includes strict potency limits for finished goods. The net result is a near total federal ban on most hemp products.

Senator Rand Paul had introduced an emergency amendment to strike the intoxicating hemp product ban. However, the Senate tabled the amendment and the language remained

As noted by the US Hemp Roundtable, this legislation would wipe out 95% of the industry, shuttering small businesses and American farms while costing states $1.5 billion in lost tax revenue

The Senate legislation moved to the House where it was approved without any change to the Senate's hemp language. Although an attempt was made to strike the Senate language pertaining to hemp, the new Senate definition of hemp was adopted. As a result, most hemp-derived cannabinoid products on the market could be prohibited within the next year.

The key components of the newly adopted legislation are as follows:

  • Hemp is redefined to include Total THC (which includes tetrahydrocannabinolic acid a.k.a “THCA”) of finished hemp products. This will prohibit THCA and any other cannabinoids that have “similar” effects (i.e., hemp derived delta-8 THC, delta-9 THC, delta-10 THC) which includes most hemp-derived cannabinoid products currently on the market.
  • A strict 0.4 mg Total THC limit per container of finished hemp products, in addition to the 0.3% on a dry weight basis THC cap.
  • Synthetic cannabinoids in both finished goods and intermediate materials would be prohibited.
  • FDA is mandated to issue guidance within 90 days of passage of the legislation to identify all covered cannabinoids impacted by the new definition of hemp.
  • Many hemp products could be classified as marijuana, which is a Schedule I narcotic under the federal Controlled Substances Act alongside heroin, LSD and MDMA.

This is not the end of the road for the hemp industry. There is still one year for impacted business to advocate and collaborate for a reasonable federal regulatory scheme for the manufacture, distribution, marketing and sale of hemp products.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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