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Federal Spending Law Effectively Bans Most Hemp THC Products After One-Year Phase-In

A newly signed spending law caps total THC at 0.4 milligrams per container with a one-year phase-in.

Overview

  • The measure outlaws consumable hemp items exceeding 0.4 milligrams of total THC per container, replacing the 2018 Farm Bill’s 0.3% by‑weight definition.
  • Industry executives say the cap will eliminate roughly 95% of the $28 billion retail hemp market when it takes effect in about a year.
  • Whitney Economics estimates more than 300,000 jobs across farming, manufacturing, logistics and retail are at risk, with Kentucky, Texas and Utah flagged for significant impact.
  • Supporters, including Sen. Mitch McConnell, say the change closes a loophole and restores the Farm Bill’s intent, while opponents such as Sen. Rand Paul warn it will crush farmers and legal businesses.
  • Trade groups are organizing a lobbying push to replace the ban with federal testing, labeling and age limits, as advocates warn the shift could override many state rules and push sales into an illicit market.