President Trump Signs Shutdown-Ending Bill That Places a Federal Ban on Most Hemp-Derived THC Products

(Photo credit: Anna Moneymaker/Getty Images).

The agreement brings a close to the shutdown, but it also marks the first federal action taken against the hemp-derived THC market since the 2018 farm bill. Until now, federal law defined hemp as cannabis containing no more than 0.3% delta-9 THC by dry weight — a standard that left room for high-THCa flower and for manufacturers to create products with delta-8, delta-10, and other intoxicating compounds derived from legally grown hemp. The newly signed law replaces that definition with a much stricter limit of 0.3% total tetrahydrocannabinols. It also bars cannabinoids that are produced synthetically or cannot occur naturally in the plant.

After a one-year transition period expires, finished consumer products will be required to contain no more than 0.4 mg of total THC per package. That standard is expected to remove the vast majority of hemp-derived THC products from the legal marketplace, with Senator Rand Paul saying it will remove “100%” of products currently sold at gas stations, convenient stores, and online.

The fight over the hemp language stretched across both chambers of Congress, with lawmakers from hemp-producing states attempting to strip the restrictions before final passage. Those efforts ultimately fell short, clearing the way for the White House to enact the full spending deal with the hemp provisions intact.

Supporters of the ban say the changes close loopholes that allowed intoxicating hemp items to proliferate without comprehensive regulation. Critics argue it will wipe out a multibillion-dollar industry and force hundreds of thousands of workers and small businesses into sudden uncertainty.

With President Trump’s signature now in place, the shutdown ends immediately—and the U.S. hemp sector begins its countdown toward a dramatically stricter regulatory landscape that will take full effect in late 2026.