New Legislation Bans Hemp-Derived THC

President Donald Trump signed a spending measure Nov. 12, funding federal operations through January and ending the longest government shutdown in US history after 43 days. The Senate had approved the measure the previous day, with seven Democrats crossing party lines to reach the needed 60-vote majority. They were won over by a Republican pledge to revisit the question of subsidies for Obamacare in December.

However, a sideshow to the fight over the Affordable Care Act is causing outrage in the hemp industry—and among farmers in hemp-producing states like Kentucky. A last-minute provision added to the spending bill will effectively ban all hemp-derived THC products.  

This concerns what has been derided as a “loophole” in the 2018 Farm Bill that legalized the production of industrial hemp in the United States. The Farm Bill kept the federal ban on cannabis and cannabis products with more than 0.3% Delta-9 THC—and on Delta-9 THC itself, whether derived from hemp or “marijuana.” However, in a measure intended to legalize the CBD market, it allowed extraction and sale of cannabinoids other than Delta-9 THC, if derived from hemp. This had an unanticipated effect. In the wake of the 2018 law, an industry suddenly boomed around hemp-derived cannabinoid products—and not just CBD but psychoactive THC. Particularly at issue was Delta-8 THC, an isomer of Delta-9, which behaves much the same way in the human organism. Products containing Delta-8 were suddenly available in convenience stores, gas stations and truck stops coast to coast.  

A backlash also quickly emerged. Critics argued that because the industry was essentially using a subterfuge to skirt the law, these new products were basically unregulated. 

The new law contains a provision added to Agriculture Department funding that restricts hemp and hemp-derived products to those containing low concentrations of all THC—not just Delta-9 THC. It is to take effect on Nov. 12, 2026, one year from the date of signing. 

The new provision “prevents the unregulated sale of intoxicating hemp-based or hemp-derived products, including Delta-8, from being sold online, in gas stations, and corner stores, while preserving non-intoxicating CBD and industrial hemp products,” reads a Senate Appropriations Committee summary.  

Media reports warn of an “extinction-level event” for the hemp industry when the provision kicks in. 

Kentucky’s Republican Sen. Rand Paul pushed an amendment to strip the provision from the bill, but this failed in a 76-24 vote. And his principal opponent was fellow Bluegrass State GOP senator, Mitch McConnell—who had championed the 2018 Farm Bill as then-majority leader of the Senate. The Louisville Courier-Journal quoted Kentucky farmers fearing that the new law could be a “death sentence.” The move is also meeting with pushback in Texas, where the GOP-dominated political establishment is divided over an effort to ban Delta-8 at the state level. Officials with the Texas chapter of the Veterans of Foreign Wars told Waco’s KWTX that many vets use hemp-derived THC products to treat PTSD and other ailments related to their service. “What in the world just happened last night?” Thus responded Mitch Fuller, legislative chair for Texas VFW, after the Congressional logjam broke. Fuller had successfully lobbied Gov. Greg Abbott to veto the Delta-8 ban in the statehouse earlier this year.  

Abbott’s big rival on the question in his own administration was Lt. Gov. Dan Patrick, who had pushed for the state ban and enthused in a tweet about the federal one after it passed: “As part of the resolution, consumable, highly intoxicating hemp-derived THC is essentially banned in America. Farmers are protected to produce industrial products. CBD and CBG are still legal. However, Delta-8, Delta-10, and candies, snacks, and gummies with high dosages of intoxicating THC are all banned. Hemp-derived Delta-9 will only be allowed to be sold in very low, non-intoxicating dosages.” (This is a reference to the 0.3% cap, well below the threshold for any psychoactive effect.)

Mitch Fuller retorted: “Of course, safety is important, of course children not having access to this is important. But let’s not use a chain-saw approach to this, let’s use a scalpel approach to it, and regulate it.”

The VFW chapter said they will use the year before the ban takes effect to organize pressure to have it reversed.

The hemp and cannabis industries are, predictably, distressed over the new measure. Adam Stettner, CEO of financial lender FundCanna, said in a statement: “Banning intoxicating hemp through a government funding bill isn’t policymaking; it’s panic disguised as progress. You can’t erase a $28 billion market or the millions of consumers who already exist. You can only decide whether those dollars flow through legal, regulated channels or into the shadows. You’re kidding yourself if you think consumers will stop buying hemp beverages, gummies or wellness products because Congress flipped a switch.” 

Stettner raised the specter of backsliding toward prohibition: “Dismantling compliant supply chains won’t make these products disappear; it will make them untraceable, untaxed and unsafe. What we need isn’t a ban, it’s balance and logic. If lawmakers want safer products and clearer rules, they need to regulate, not eradicate. The responsible path forward is to regulate hemp like we do alcohol or caffeine at the federal level, with age limits, testing and labeling. Inserting a blanket prohibition by sneaking it into a budget deal won’t work; prohibition never works.”

Thomas Winstanley, executive vice president of infused products purveyor Edibles.com, emphasized the ironic role of the former Senate majority leader, who has announced that he will retire next year.“Mitch McConnell has once again proven himself the architect of the law of unintended consequences,” Winstanley said. “When he introduced the 2018 Farm Bill, it was celebrated as a lifeline for America’s farmers—a rare bipartisan achievement that gave rural communities a new cash crop and built a thriving, homegrown industry. What no one expected was that it would also ignite a $28 billion consumer market, create over 300,000 American jobs, and form a domestic supply chain rooted in U.S. agriculture and innovation. That was the first unintended consequence, a positive one. Today, history repeats itself, but this time, the fallout will be devastating. By attaching a sweeping hemp restriction to the government spending bill, McConnell has chosen to end his career by crippling the very industry he created.”

He too pledged to use the one-year grace period to organize resistance: “Farmers, brands, and consumers, once fragmented, are now mobilizing together to defend what they’ve built and to finally push for the federal framework the hemp industry has long demanded.”