The 2018 Farm Bill effectively launched a new golden age of hemp products. Since the bill took effect, hemp has grown into a nearly $30 billion industry. But in November of 2025, Congress passed a law that ended the longest government shutdown in history. However, in that bill is a provision that greatly impacts the hemp industry and threatens more than 300,000 jobs nationwide.
The new provision sought to close the intoxicating hemp “loophole” that many businesses have used to explore and produce products with the many major and minor cannabinoids beyond THC. The intentions of lawmakers are arguably good: define regulations in an unregulated area of cannabis, protect minors from being able to buy intoxicating products online, and so on. However, as the law is currently written, it effectively bans hemp products starting in November 2026 (with a notable exception).
This ban took the hemp industry off guard. The entire supply chain, from growers to retailers, is now scrambling to understand this new normal and develop strategies to survive. This post outlines what the law changed, the proposed alternative legislation, and what hemp-based businesses can do to get ahead of the November deadline.
Marijuana vs hemp: Changing legal definitions
- Cannabis/Marijuana: The federal government currently considers a product with more than 0.3% THC per serving to be marijuana. After the intoxicating hemp ban takes effect, the new definition will also include any product with 0.4% THC per container (which the FDA plans to define explicitly what “container” means in this context).
- Hemp: The 2018 Farm Bill defined hemp and hemp-based products to contain less than 0.3% THC per serving. As discussed above, the November deadline will require hemp products to contain less than 0.4% THC per container. Additionally, the FDA will create a list of intoxicating cannabinoids, such as Delta-8, that will no longer be legal to sell federally.
- Industrial hemp: The law includes specific language exempting industrial hemp from the above limits because it is intended for use in manufacturing.
Also read: Cannabis in 2026: Rescheduling, Emerging Markets, and Changing Consumer Demands
What exactly does the new law say?
A key tenet of the new law is changing the legal definition of hemp and marijuana once more. The federal government, after November 2026, will consider any product over 0.4% THC “per container” as marijuana, and anything below as hemp. The current vagueness of the term container is causing industry concerns.
This limit also includes intermediaries used to produce products like CBD gummies. As a result, many CBD products that are currently legal may become illegal to manufacture once the new law takes effect. In fact, some cannabis industry executives predict that this limit will include 95% of hemp products currently on the market.
What happens next?
The new law will also restrict intoxicating hemp products by limiting cannabinoids and synthetic derivatives. The law required the FDA to provide a list clarifying which compounds were included within 90 days. As of writing, that deadline, February 10th, has passed, with no further communication from the federal government.
The list will be composed of three major components:
- A list of “all cannabinoids known to the FDA to be capable of being naturally produced” by cannabis
- A list of “all tetrahydrocannabinol class cannabinoids known to the agency to be naturally occurring in the plant”
- A list of “all other known cannabinoids with similar effects to, or marketed to have similar effects to, tetrahydrocannabinol class cannabinoids”.
Beyond clarifications in the legal language of the hemp ban, significant questions remain about enforcement. The nonpartisan Congressional Research Service (CRS) published a report in December 2025 that questioned the government’s ability to enforce the ban broadly. The CRS report suggests that neither the FDA nor the DEA has adequate resources to keep intoxicating hemp products off the market.
If the federal government lacks the resources to enforce the ban fully, one scenario is that consumer lawsuits will serve as a form of enforcement as some hemp companies try to stay in business after the ban.
Another area of uncertainty is how federal and state regulations will interact with the new ban. The current THC-based cannabis industry is thriving in state markets while cannabis remains a federally illegal substance. A similar situation could be possible, as states and municipalities take up the issue. Some states, like Minnesota, already restrict the sale of intoxicating hemp to consumers 21 and older and limit the amount of THC-8 per serving. Some cities, like Chicago, are seeking to impose hemp bans similar to the federal law. The Chicago ordinance includes a carve-out for beverages, and there is speculation that the mayor could veto the bill. Many similar laws and ordinances will play out across the country in the coming months, further muddying the waters of enforcement.
Also read: Reducing Risk and Strengthening Compliance in Cannabis Cash Management
Proposed legislation
The hemp ban is counter to the growing momentum to reschedule cannabis. The President himself has asked Congress to reconsider the hemp ban and asked his cabinet to “develop research methods and models utilizing real-world evidence to improve access to hemp-derived cannabinoid products”, in an effort to have CBD products covered by Medicare.
The ban is also counter to public opinion. A recent survey found that 4 out of 5 consumers oppose the ban. Some lawmakers have taken notice.
Two bills have been introduced in Congress that would take the sting out of the hemp ban. The Hemp Planting Predictability Act is a bipartisan effort in both the Senate and the House of Representatives that aims to delay the forthcoming federal prohibition on intoxicating hemp products. The core goal of this bill is to postpone the ban’s effective date by two years, from November 13, 2026, until November 2028, giving farmers and the $28 billion industry more time to prepare for the regulatory changes.
As an alternative to an outright ban, the Cannabinoid Safety and Regulation Act (CSRA), introduced by Senators Ron Wyden and Jeff Merkley, seeks to establish a comprehensive federal regulatory framework for hemp-derived cannabinoids. Instead of prohibition, the CSRA proposes measures to keep products legal while ensuring consumer safety, including setting an age limit of 21, implementing strict testing and labeling requirements, and establishing higher THC (and intoxicating compound) limits, such as 5mg per serving, for regulated products.
Navigating the evolving uncertainties of the hemp market
The implications of the new law on insurance coverage remain uncertain, and it is essential to prepare for potential shifts in your policy and pricing.
At McGowan Wholesale, we are closely tracking these developments to provide you with the most accurate and timely guidance for your hemp business.
Reach out to our wholesale cannabis division for a personalized consultation that addresses your unique operations. We leverage our extensive industry expertise to help you manage risks and secure your business’s future effectively. Contact us today.
