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New Federal Law Caps THC in Hemp Products at 0.4 Milligrams, Threatening Most of the Market

A one-year phase-in creates a window for FDA guidance, with potential legislative fixes under discussion.

Overview

  • The shutdown-ending funding bill signed last week includes language, backed by Sen. Mitch McConnell, that limits total THC to 0.4 milligrams per container in hemp consumables, with enforcement slated for November 2026.
  • Legal analyses say the statute redefines hemp to cover total THC across isomers and bars cannabinoids synthesized or produced off-plant, sweeping in gummies, beverages, vapes and even many non‑intoxicating CBD items.
  • Industry groups warn the cap would eliminate more than 95% of current products and jeopardize a $28.4 billion market and over 300,000 jobs, with some operators predicting growth of an illicit market.
  • Regulators must publish cannabinoid reference lists within roughly 90 days, while companies evaluate reformulation, compliance plans and potential legal challenges during the phase‑in period.
  • State rules that allowed far higher THC limits—such as Georgia’s 10 mg per beverage serving—would be effectively preempted, as some lawmakers, including Rep. Morgan Griffith according to the U.S. Hemp Roundtable, prepare proposals for a regulated alternative.