Overview
- President Trump signed the funding package on Nov. 12 with Section 781, which redefines hemp, counts THCA in total THC, bans non‑plant or synthesized cannabinoids, and caps total THC at 0.4 mg per container starting in November 2026.
- Industry groups and analysts say the cap would eliminate roughly 95% of a $28 billion market and put more than 300,000 jobs at risk, with Texas alone projected to see thousands of business failures and over 40,000 displaced workers.
- Legal experts expect enforcement to fall largely to states, raising preemption questions for existing hemp rules, while products sold in state‑licensed marijuana dispensaries remain unaffected.
- The restriction was added to a must‑pass shutdown bill backed by Sen. Mitch McConnell; Sen. Rand Paul forced a vote to strip the language but it failed, with Sen. Ted Cruz among the few Republicans supporting removal and dozens of state attorneys general urging a crackdown.
- Companies and trade groups are mobilizing during the grace period for lobbying and potential litigation, warning of supply‑chain, insurance and contract disruptions and predicting a shift of consumer demand to unregulated markets without testing or age controls.