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Spending Law Redefines Hemp, Imposes 0.4 mg THC Cap After One-Year Phase-In

A one-year phase-in sets up an industry push to replace the ban with federal rules on testing, labeling, age limits.

Overview

  • President Donald Trump signed the shutdown-ending funding package containing the new hemp definition and a cap of 0.4 milligrams total THC per container.
  • The provision takes effect on Nov. 13, 2026, giving businesses roughly a year before federal enforcement begins.
  • Industry groups and analysts warn the change could wipe out about 95% of a roughly $28 billion retail market and threaten more than 300,000 jobs.
  • The FDA has 90 days to publish a cannabinoid list and clarify terms such as “container,” with legal experts expecting enforcement to lean on states.
  • State-licensed dispensary cannabis sales remain unaffected, while the measure—pushed by Sen. Mitch McConnell and opposed by Sens. Rand Paul and Ted Cruz—cites child safety concerns that critics counter with plans for lobbying and regulatory alternatives.