The United States’ US$28 billion hemp industry could soon face major job and profit losses, as Congress’ new government funding bill is set to ban almost all hemp products.
The clause will ban products with more than 0.4 milligrams of THC, cannabis’ main psychoactive ingredient, per container. It is part of the funding legislation that ended the 43-day government shutdown yesterday, after being signed into law by U.S. President Donald Trump.
“This would shut down legitimate businesses, eliminate thousands of jobs, and force patients, seniors, and veterans who rely on hemp products to break federal law to access the relief they depend on,” wrote the National Cannabis Industry Association.
“U.S. Senators were promised that this bill protects non-intoxicating CBD products, which is manifestly untrue – the large majority of non-intoxicating CBD products on the marketplace feature more than 0.4 mg of THC per container,” according to the U.S. Hemp Roundtable.
The ban would impact more than 95% of hemp extract products, the U.S. Hemp Roundtable said. Over 300,000 jobs related to the hemp retail market are at risk, hemp research firm Whitney Economics estimated.
These restrictions will enter into effect in November 2026. The Food and Drug Administration (FDA) must provide a list of natural and synthetic cannabinoids and its definition of ‘container’ within 90 days.
Kentucky Republican Senator Mitch McConnell added this language to the funding bill, saying it would prevent hemp from being used to create synthetic products with high concentrations of THC.
While fellow Kentucky Republican Rand Paul proposed an amendment that would remove the prospective ban, it was blocked by a Senate vote.
Hemp has been federally legal in the U.S. since the 2018 Farm Bill was passed, which allowed products with less than 0.3% THC by weight. The bill required the FDA to form a regulatory framework for hemp products, though it did not do so.
Cannabis is legal for recreational use in 24 U.S. states, and for medicinal use in 40 states.
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