Overview
- Section 781 in the newly signed funding law changes the federal definition of hemp, capping total THC at 0.4 milligrams per container and 0.3% combined tetrahydrocannabinols, explicitly counting THCA and broadly excluding synthesized or synthetic‑like cannabinoids.
- The restrictions take effect one year after enactment in November 2026, creating a limited window for legislative, regulatory, or legal challenges to the new framework.
- Industry groups say the cap would eliminate roughly 95% of today’s hemp consumer products, threatening a $28 billion retail market and more than 300,000 jobs, with economists warning of supply‑chain fallout from farms to retailers.
- Supporters, including Sen. Mitch McConnell and Texas Lt. Gov. Dan Patrick, argue the measure closes a 2018 Farm Bill loophole and protects public safety, while opponents such as Sen. Rand Paul—joined by Sen. Ted Cruz on a failed removal vote—argue it overrides state regimes and harms farmers.
- States that permit higher per‑serving THC limits would be preempted, prompting warnings of business closures in places like Texas, where economist Beau Whitney projects thousands of firms could fail, and fueling calls for a federal regulatory model focused on testing, labeling, and age limits to avoid a black market.