Congress Passes New Bill That Will BAN 95% Of All Hemp THC Products

The hemp industry is in trouble after Congress’ latest bill.

Tucked deep inside of the government spending bill that was passed by Congress was a provision that will outlaw some THC products.

The new ban will prevent products containing “0.4 milligrams of total THC per container” from coming to the market.

CNBC broke down how the hemp industry will be impacted:

The hemp industry is bracing for layoffs, production reductions and billions in lost revenue after Congress passed a government funding bill late Wednesday containing a surprise provision that will ban nearly all hemp-derived consumer products.

Hemp, a derivative of the cannabis plant, was legalized in the 2018 Farm Bill for industrial uses like rope, textiles and seed. But the law’s broad definition created a loophole in federal rules on THC — the psychoactive compound responsible for a high — experts said, allowing producers to extract psychoactive cannabinoids from federally legal hemp. Companies used that opening to flood the market with gummies, drinks and vapes capable of delivering a marijuana-like high.

The new ban, tucked into legislation ending the longest shutdown in history, outlaws products containing more than 0.4 milligrams of total THC per container. Industry executives said that threshold will wipe out 95% of the $28 billion hemp retail market when it takes effect in a year.

For reference, a single hemp gummy typically contains 2.5 to 10 milligrams of THC, according to the Journal of Cannabis Research.

“We have lost the battle this time,” said Jonathan Miller, the U.S. Hemp Roundtable’s general counsel. “In effect, this is a total, all out, complete ban on hemp products in the United States.”

Users on X, claimed the new provision was pushed by the big alcohol lobby:

With a hard-fought battle behind us, Big Bourbon & McConnell’s war on hemp is far from over. With your dedicated help, we brought nation-wide attention to this fight. We now need your continued engagement more than ever. We have 363 days left to save the industry. Please stay… pic.twitter.com/xD8AjuKMuU

— Cornbread Hemp (@CornbreadHemp) November 14, 2025

Mitch McConnell didn’t just wake up one morning and decide to wipe out 95% of the $28B U.S. hemp industry.

Now we know why: he took nearly $900,000 from the alcohol lobby and then quietly slipped a hemp ban into a shutdown bill that threatens 300,000 American jobs. pic.twitter.com/jsqESAvv3n

— Brian Allen (@allenanalysis) November 13, 2025

The Hill reported some members of the Hemp industry are looking to Congress for regulations:

According to the U.S. Hemp Roundtable, the vast majority of hemp products on the marketplace surpass the 0.4 milligram threshold, even the nonintoxicating ones.

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In a memo released Thursday, the trade group said the hemp industry took a serious blow, but they’re confident in finding a path forward because the language in the funding bill gives a one-year period before the ban takes effect.

“We’re disappointed, but not defeated,” the group said. “Our new mission, friends: 365 days to regulate, NOT ban.”

The group pointed to a draft bill circulated over the summer from Rep. Morgan Griffith (R-Va.) that would establish a detailed regulatory scheme for hemp-derived products, including milligram thresholds, labeling requirements, and a new chapter in the Food, Drug, and Cosmetic Act explicitly giving the FDA authority over cannabinoid hemp products.

The 2018 farm bill removed hemp from the controlled substances list in a bid to boost farmers’ income and expand production of the plant, which can also be used in textiles and cosmetics. But stakeholders said lawmakers didn’t anticipate the industry’s rapid growth.

Those cannabinoid products, including gummies and drinks, have exploded in popularity and are now sold beyond dispensaries, expanding to gas stations, convenience stores, and even major retailers such as Target.

Michelle Bodian, general counsel and head of regulatory affairs for the THC beverage brand Nowadays, said there are more than 40 states that regulate hemp-derived THC in a way that can be scaled to the federal level.

“Our goal is to help federal policymakers create a clear, enforceable framework that brings this fast-growing category into the mainstream while eliminating room for bad actors,” Bodian said in a statement.

The farm bill required the FDA to establish a regulatory framework for hemp products, but it never did, allowing intoxicating hemp products to be introduced in the marketplace without oversight or standardization.

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Griffith, the chair of the Energy and Commerce Health subcommittee, has not yet formally introduced a bill, though he’s authored other hemp and CBD legislation in the past.

“This is not one year to a ban. This is one year to regulate. And the industry will do exactly that — united, determined, and unwilling to let Washington destroy what farmers built and consumers want,” said Thomas Winstanley, executive vice president and general manager of Edibles.com, a new online hemp marketplace from the parent company of Edible Arrangements.

A varied array of groups rallied in support of the legislation, including alcohol groups, cannabis and cannabis-adjacent companies, as well as major marijuana prohibition groups.

They lobbied hard for limits or bans on hemp-based THC