New cannabis legislation has started off slowly in 2026. While there could be some major developments at the federal level, states are looking like they’ll operate business as usual this year, with some refinements.
Several states have filed bills to legalize adult use, and Virginia is quickly moving to erect a regulated marketplace. Hemp, again, will likely be the story of the year as another delinquent Farm Bill has been introduced with language that redefines legal hemp, as well as federal bills aiming to halt the upcoming hemp-derived cannabinoid (HDC) ban. Meanwhile, a dozen states look to restrict the market.
Focus on hemp in D.C.
On March 5, the House Agriculture Committee approved the Farm, Food, and National Security Act of 2026. Better known as the “Farm Bill,” this omnibus legislation is more than two years overdue.
Introduced on Feb. 13, the latest version of the Farm Bill simply redefines legal hemp as having no more than 0.3% of any form of THC in the plant. It does not address allowable THC amounts in finished products. While it still would severely restrict the market, it is not as harsh as amendments introduced by Rep. Mary Miller last year. The current bill would also ease regulations for industrial hemp manufacturers.
In 2018, Congress legalized hemp with a concentration of not more than 0.3% delta-9 THC, as well as the plant’s “derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers.”
Since then, intoxicating consumable hemp products have mushroomed. Without further regulation, the products have been available at regular retail outlets and available to children, with no safety or marketing requirements. Most states have had to pick up the mantle and enact legislation to regulate or ban HDC products, often leading to lawsuits by hemp businesses.
As many have called on Congress to clarify the legal ambiguity, lawmakers took a scalpel to the market in November by inserting language that would effectively ban HDC products into a must-pass appropriations bill. The industry was given a one-year reprieve, and the clamor to do something that would save the market started immediately.
Rep. James Baird, R-Ind., and Sen. Amy Klobuchar, D-Minn., introduced companion bills that would delay the hemp THC ban for two years, while Rep. Morgan Griffith, R-Va., offered the HEMP Act, which is intended to regulate hemp cannabinoid products. But as of March 10, there’s still no bill text to review.
The House Agriculture Committee’s draft of the Farm Bill does not address the pending ban. Whether the omnibus legislation makes it to the full House of Representatives this year remains to be seen as Congress remains at loggerheads to pass longer-term appropriations bills.
Still no movement on rescheduling
Despite all the fanfare of President Donald Trump signing an executive order to get the marijuana rescheduling process moving again, nothing has been filed in the Federal Register. A hearing has been on hold since last year, and the administrative law judge who was hearing the case has retired.
It seems Attorney General Pam Bondi, who challenged Florida’s medical use ballot measure when she was attorney general of that state, has other important matters on her plate.
Fortunately for the industry, a Department of Justice appropriations bill was signed into law Jan. 23 that continues the policy to not use DOJ funding to prosecute federal marijuana laws in states that legalized medical cannabis, with the notable exception of Nebraska.
Nebraska voters legalized medical use and a regulated market in 2024, and Gov. Jim Pillen reluctantly signed proclamations enacting the law that December.
“Under federal law, it is unlawful to either possess or sell Schedule I controlled substances. The passed measures cannot, and do not, change federal law,” he and Attorney General Mike Hilgers said in a joint statement at the time.
Although the state has formed a cannabis commission and started approving cultivation licenses, the law itself remains challenged in court by former state Sen. John Kuehn.
The enforcement ban, known as the Rohrabacher-Farr amendment, also does not include language that would have allowed enforcement within 1000 feet of schools or government housing, which had been proposed last year.
Virginia marching toward adult-use sales
The most likely change to the national cannabis market will be adult-use sales in Virginia.
The Old Dominion State legalized adult use in 2021, but it has yet to form a regulated market as former Gov. Glenn Youngkin repeatedly vetoed legislation. However, new Gov. Abigail Spanberger said she’ll sign legislation.
Currently, two bills are marching through the state legislature. Both are similar and closely align with proposed regulations released in December by a joint legislative commission. HB 642 and SB 542 have passed both houses and are in conference committee. The main difference is the prospective launch date. HB 642 would start sales this November, while SB 542 would wait until Jan. 1, 2027.
Other states have already introduced adult-use legalization bills, but as usual, they start the year with little momentum. They include Florida, Georgia, Hawaii and Kentucky. In New Hampshire, an adult-use bill that passed the House has already been laid on the table in the Senate. The Indiana House has a bill to decriminalize possession of up to 2 ounces of marijuana.
Pennsylvania Gov. Josh Shapiro would love the legislature to send him a bill to legalize adult use. His proposed budget includes an estimated $200 million from cannabis taxes. But no bill has been introduced yet.
Primarily, proposed state legislation aims to tighten and strengthen existing adult-use and medical markets.
In Nebraska, where medical use is barely getting off the ground, several bills have been filed to restrict the market beyond the voter initiatives. LB 483 would limit dosages to 300 mg of delta-9 THC and only allow tinctures and pills. LB 677, carried over from last year, provides for a variety of regulations including limiting the number of business licenses. LB 1235 would allow the Medical Cannabis Commission to write regulations and provide for taxation.
Other notable marijuana-related bills include:
- Florida — SB 776 in the medical marijuana state would allow home cultivation of up to six plants.
- Louisiana — HB 373 would create a 3-year adult-use pilot program.
- Michigan — SB 810 would repeal the 24% cannabis tax imposed last year.
- New Jersey — On Jan. 20, Gov. Phil Murray signed S 4847/A 6267, which limits municipal restrictions on medical cannabis businesses and allows current medical cannabis dispensaries to operate as adult-use, among other changes.
- Oklahoma — HB 3144 would limit the number of licenses to 2,550, and SB 1364 would require license applicants to attest to outstanding fees, fines taxes or other debts. SB 1591 would limit the amount of THC in edible products to no more than 10 milligrams per edible and 100 milligrams per package.
- Washington — SB 6204 would legalize home cultivation of up to six plants.
Hemp bans still a focus
When it comes to intoxicating hemp, several states have bills that could severely limit the marketplace.
South Carolina has a couple of bills pending that would ban all intoxicating hemp products, except H 4759 would still allow hemp-derived beverages of up to 5 milligrams of THC.
In Alabama, SB 1 would make psychoactive hemp products a Schedule I drug that can only be sold in pharmacies.
Illinois, Indiana, New Hampshire, Nebraska, New Jersey, Washington and Wisconsin all have bills that would redefine intoxicating HDCs as having more than 0.3% total THC by dry weight, not just delta-9 under the 2018 Farm Act. However, rather than ban products, these states would have stricter regulations, including prohibiting sales to people under age 21.
- Illinois — SB 3919, would require labeling and testing.
- Indiana — SB 250, would require permits for the manufacture, distribution and sale of HDC products.
- New Hampshire — Both SB 624 and SB 461, which would redefine legal hemp, have passed the Senate. Another bill, SB 485 would require licensing and regulation of the HDC market.
- Wisconsin — SB 682 would require testing and testing regulations and limit beverages to 10 milligrams of THC per serving. SB 644 would regulate hemp beverages like alcohol.
Other pending HDC bills include:
- Kentucky — SB 223 would allow hemp-infused beverages to be sold at bars, restaurants, fairs and festivals, and require manufacturers to be licensed. Also, HB 612 would license fees for products derived from hemp, as well as kratom and other cannabinoids.
- Minnesota — SF 3591 sets potency limits for finished HDC products and sets labeling and testing requirements.
- Virginia — SB 543 would require a registration system.
