US New Funding Law Includes Provision Strictly Limiting Cannabis Products

On November 12, President Trump signed a funding bill that just passed both houses of Congress with the aim of ending the longest federal government shutdown in history. One provision in the bill will extensively redefine hemp, effectively prohibiting almost all hemp products.

This ban will take effect one year after the bill is signed, by the end of 2026. The hemp industry will have a one-year buffer period.

The 2018 Farm Bill legalized hemp products with a delta-9 tetrahydrocannabinol (THC) content below 0.3%, opening the market for other cannabinoid products such as delta-8 THC and tetrahydrocannabinolic acid (THCA).

The new bill signed by Trump changes the definition of hemp to calculate the total THC content and strictly limits the total THC content in finished products to 0.4 milligrams.

Setting this new standard essentially bans the majority of hemp-derived beverages, food, e-cigarettes, and flower products currently available in the market. Industry experts point out that even non-psychotropic CBD products, over 90% contain trace amounts of THC exceeding the new limit.

The new federal regulations will also overturn the looser hemp laws in nearly 20 states. For example, Minnesota currently allows 3 milligrams of THC per serving, Kentucky permits beverages with 5 milligrams, Georgia allows 10 milligrams, all of which now far exceed the new federal limit.

Jim Higdon, owner of Cornbread Hemp in Kentucky, mentioned that this provision will lead to the prohibition of his entire hemp product line in an interview with Louisville Public Media.

During the deliberation of the new bill, the hemp provision sparked intense debate between two Republican senators from Kentucky, where the hemp industry is prevalent.

Mitch McConnell, who led the legalization of hemp in 2018 but is now ardently pushing for the strictest hemp restrictions, explained on November 10 that many companies were exploiting legal loopholes in selling hallucinogenic products openly at gas stations and convenience stores under the guise of hemp legalization. He emphasized that the new regulations can prevent such dangerous products from falling into the hands of children while still preserving hemp products used for industrial purposes like fiber and seeds.

Andy Harris, a Republican congressman from Maryland who jointly supports the hemp restrictions, also agreed that the new law closes loopholes created by the 2018 legislation.

However, Senator Rand Paul of Kentucky strongly opposed the ban on hemp products in the Senate, warning on November 10 that the content standards proposed in the bill would completely eliminate hemp products in the country. Despite his amendment to remove hemp-related provisions being rejected in the Senate by a 76-24 vote, with only Senator Ted Cruz of Texas standing with him.

Late on November 10, the Senate passed the temporary funding bill containing the hemp provision by a vote of 60-40, followed by the House passing it on November 12 with a vote of 222-209. President Trump promptly signed the bill into law.