The recently passed bill that ended the longest government shutdown in U.S. history could have major impacts on the U.S. hemp industry. A last-minute addition to the bill by Sen. Mitch McConnell (R-Ky.) will impose strict new requirements on hemp products in an effort to close a loophole that has allowed a market of intoxicating hemp-derived products to flourish nationally.
Specifically, the 2018 Farm Bill unintentionally paved the way for a broad market of psychoactive substances very similar to Delta-9 tetrahydrocannabinol (THC), which remains federally scheduled, to emerge legally in all 50 U.S. states.
Since 2018, the industry has exploded. It is estimated to be worth between $25 billion and $28 billion today and employs hundreds of thousands of people. Critics of the Senate provision say the industry will be devastated by the change.
Some lawmakers have already introduced legislation to rescind the law and return to the status quo, but it’s unclear how these efforts will fare in either chamber of the Republican-controlled Congress.
Here’s what to know.
In 2018, Congress passed the Farm Bill, which loosened regulations around hemp, removing it from its classification alongside the marijuana plant as a Schedule I substance. Previously, both hemp and marijuana had been restricted under the Controlled Substances Act.
In the legislation, legal hemp was defined as cannabis containing less than 0.3 percent Delta-9 THC. However, the hemp plant also produces small quantities of very similar substances, including Delta-8 THC, Delta-10 THC, tetrahydrocannabinolic acid (THCA), which converts to Delta-9 THC when heated, and others.
The 2018 Farm Bill exclusively defined Delta-9 THC as a Schedule I substance, creating a loophole whereby these chemically similar substances were effectively legalized.
An industry quickly formed around extracting and concentrating these analogous compounds into intoxicating products that could be legally sold in all 50 states. Since then, several states have independently moved to ban the sale of these products.
In some cases, these products have also been said to be aimed at minors in their marketing, including through the use of bright colors and a variety of flavors.
In its bill to end the government shutdown, the Senate approved a provision that would close this loophole and ban all intoxicating hemp-derived products.
Section 781 of the bill to fund the U.S. Agriculture sector redefines “hemp” as only “the plant cannabis sativa … and all derivatives, extracts, cannabinoids … with a total tetrahydrocannabinols concentration (including [THCA]) of not more than 0.3 percent on a dry weight basis.”
It also includes language to ensure that other intoxicating substances derived from hemp are largely prohibited. Any product sold must be limited to 0.4 milligrams of total intoxicating cannabinoids per container.
The rule change won’t go into effect until Nov. 12, 2026.
Sen. Rand Paul (R-Ky.) attempted to strip the provision ahead of the Senate’s vote funding bill, citing the impact that the provision could have on the hemp industry in Kentucky.
His amendment was overwhelmingly rejected by the upper chamber, with only 24 senators voting in favor of moving forward with the measure.
Following the passage of the government funding bill, some lawmakers have been mulling options to reverse the ban or replace it with federal regulation of the industry.
A proposal put forward by Rep. Nancy Mace (R-S.C.) dubbed the “American Hemp Protection Act of 2025” would simply rescind Section 781, keeping the status quo intact.
Under the framework laid out in the 2018 Farm Bill, Mace said, “the hemp industry supports over 320,000 American jobs, generates $28.4 billion in regulated market activity, and produces some $1.5 billion in state tax revenue.”
Rep. Thomas Massie (R-S.C.) also sought to strip Section 781 from the bill ahead of the vote in the House.
After the passage of the bill, the U.S. Hemp Roundtable—the largest pro-hemp lobbying group in the U.S.—vowed it would fight to rescind the change.
The group said in a statement, that it is pushing for “fair regulation” that “supports child safety.”
“The appropriate answer is not re-definitions or bans. We need regulation,” the group said. “We have been, and will continue to, advocate for measures prioritizing safety and responsibility without stifling industry growth.”
“Congress must swiftly reject any new prohibition, uphold the current definition of hemp, and ensure that regulatory decisions are rooted in evidence and fairness,” the statement said.
The U.S. Hemp Roundtable and other industry lobbyists have vowed to continue fighting for new legislation until the ban goes into effect.
Rep. Jasmine Crockett (D-Texas) told The Epoch Times that regulation was the better approach.
“As someone who’s done criminal defense work, as someone who’s seen people that have bought things on the black market and messed them up, I would rather have it regulated [and] make sure that we are taxing it,” Crockett said.
In the House, some Republicans have also expressed openness to regulation.
Rep. Eric Burlison (R-Mo.) told The Epoch Times that he took a middle ground on the issue.
“I can understand that there may be a viable hemp product that is not dangerous to the American people,” he said, adding that intoxicating hemp products should be treated like alcohol.
Rep. Tim Burchett (R-Tenn.) told The Epoch Times, “We need to figure out a way to regulate it. It’s obviously an industry that is booming right now.”
“The problem you’ve got is state after state has different rules on marijuana,” Burchett said. “It’s just—let’s just face it—people want to get high, and we’re going to have to make a decision on that.”
Rep. Troy Nehls (R-Texas) told The Epoch Times the issue should be left to the states. He compared the issue to marijuana products, which are legal in some states and illegal in others, despite technically remaining illegal nationwide under federal law.
“I don’t know if the federal government should be dabbling into that,” Nehls said.
In light of its overwhelming vote to table Paul’s bid to strip Section 781 from the funding bill, there seems to be little appetite in the Senate for a wholesale return to the status quo.
Currently, there’s no plan for either the House or the Senate to move forward with reversing the change, leaving it unclear whether Congress will take action on the issue before the ban goes into effect next November.
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