The spending bill signed by President Trump on November 12, 2025 to end the government shutdown effectively banned most hemp-derived products nationwide. These changes significantly narrowed what constitutes “hemp” and further restricts hemp products that will reshape the hemp market by 2026.
Key Provisions
Redefinition of “Hemp”
The bill redefines “hemp” by measuring the total concentration of THC and THCA of not more than 0.3% on a dry weight basis. This departs from the Farm Bill, which only measured delta-9 THC.
Prohibited products
The bill introduces federal bans on several categories of hemp-derived products, including:
- Viable seeds exceeding the 0.3% total THC threshold
- Products containing cannabinoids not capable of being naturally produced by the cannabis plant, or were synthesized or manufactured outside of the plant;
- Intermediate hemp-derived cannabinoid products marketed or sold as a final product or directly to consumers for personal or household use;
- Products with more than 0.4 milligrams combined total THC/THCA per container and any other cannabinoids having or marketed to have similar effects as THC. For example, a can of hemp beverage containing more than 0.4mg of total THC (including THCA) would be banned.
FDA Mandate (90-days from enactment)
Within 90 days of enactment, the FDA must provide a list of :
- naturally produced cannabinoids,
- all THC class cannabinoids
- other cannabinoids with similar effects as THC, and
- additional clarification about the definition of a “container”— in which a hemp product is sold in (e.g., box, packet, can, cartridge, bad, bottle).
Effective Date
The bill was implemented on November 12, 2025, so the new restrictions will take effect on November 12, 2026 with a one year transition period.
The implications for the hemp industry are significant. If much of the hemp products widely sold become federally illegal cannabis products, they will be subjected to regulations like cannabis products, including but not limited to, state and local cannabis regulations, restriction on interstate commerce, and 280E tax treatment. Those in the hemp industry will have limited time to adapt.
Contact us with questions about this bill and its impact on reshaping the hemp industry.
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