With the stakes higher than they have ever been for a $28 billion industry, hemp businesses and advocates are wasting no time to reverse a hemp-derived cannabinoid (HDC) ban placed into spending legislation at the last minute and enact consumer-focused regulations.
When President Donald Trump signed the budget bill, HR 5371, this month that reopened the federal government, part of that bill redefined legal hemp and essentially outlawed all HDC products by Nov. 12, 2026.
The 2018 Farm Bill unlocked an intoxicating hemp and CBD industry when it stipulated that cannabis that contained less than 0.3% delta-9 THC was no longer a scheduled drug. This effectively legalized vapes, edibles and beverages containing THCA and delta-8 THC. The law also allowed new consumable products with delta-9 THC because the prohibited amount was based on a percentage of dry weight, so the heavier the product, the more delta-9 THC it could legally contain.
What resulted is a wild, unregulated industry where children could buy products often containing five to 50 milligrams of THC per serving, sometimes more, at neighborhood stores and online.
Under the new law, the total amount of all forms of THC or THCA is limited to 0.4 mg, regardless of the total weight of the product. This new standard essentially makes most HDC products, including non-intoxicating CBD, federally illegal. The FDA has 90 days to publish a list of naturally occurring cannabinoids and THC compounds.
The language was added by Sen. Mitch McConnell, the Kentucky Republican who happened to be the architect of the 2018 Farm Bill. The budget bill largely passed in the Senate on partisan lines, 60-40, on Nov. 10. Fellow Kentucky Sen. Rand Paul, R, was the lone hold out among his party in the Senate due to the hemp provision.
“This bill contains language that has been air-dropped in that will destroy hemp farming in Kentucky and across the United States,” said Paul in a Nov. 10 speech on the Senate floor ahead of the ban’s passage. “The bill, as it now stands, overrides the regulatory frameworks of several states, cancels the collective decisions of hemp consumers, and destroys the livelihoods of hemp farmers. And it couldn’t come at a worse time for America’s farmers. Times are tough for our farmers.”
The House followed suit Nov. 12 on a 222-209 vote, with Rep. Thomas Massie attempting to kill the language. Trump signed it immediately after.
Paul has since reportedly said he’s working on a new bill that will allow HDC products before next November’s deadline.
Rep. Ilhan Omar, D-Minn, also told Marijuana Moment that she’s working on a bill that would allow exemptions for the hemp ban for states that already have hemp regulations in place.
Meanwhile, Rep. Nancy Mace, R-SC, is circulating a bill that would repeal Section 781, reversing the new definition of legal hemp.
Down but not out
In the private sector, hemp companies have consistently spoken out about their plan to lobby to preserve the market.
“We’ve got 364 days to raise hell and to get this law changed and to fix this issue, and I got a feeling from some folks back here, we ain’t done, we ain’t giving up,” said Cornbread co-founder Eric Zipperle in a video statement posted on social media.
The U.S. Hemp Roundtable estimates that legal hemp represents a $28.4 billion industry that employs thousands. The group has vowed to fight the ban, along with numerous hemp companies, such as South Carolina-based Crescent Canna.
“We built an American industry with an American supply chain—creating jobs, generating tax revenue, and offering millions of adults a healthier alternative to alcohol. Now, in the shadows, Congress dismantled the very industry it created, criminalizing hemp products that have been legal for years, destroying 300,000+ American jobs, and pushing consumers to the black market,” said Crescent Canna CEO Joe Gerrity in a released statement. “The irony is that states like Louisiana, Tennessee, Minnesota, and Kentucky already prove regulation works, with strong hemp laws to keep products safe for adults and out of the hands of kids.”
Similar to how states have been able to legalize medical or adult-use cannabis despite a federal prohibition, state-level hemp regulations will still likely protect those smaller hemp markets. This includes states like Texas and Tennessee, which recently passed regulations that still allow HDC products, while other states are starting to reconsider their rules in the wake of the federal change.
Tennessee’s Department of Agriculture released a notice that it planned to continue to allow the production and sale of hemp products in the state. New rules limiting potency and banning THCA flower will take effect in Tennessee in January.
The Texas Alcoholic Beverage Commission is also planning to continue crafting new regulations governing that state’s hemp market. The Texas legislature attempted to ban all hemp products multiple times this year, but were never able to get past the governor’s veto power.
States like Ohio, Illinois and Florida that have also attempted similar bans have indicated that they may try again under the new federal rules.
