Overview
- President Trump signed the must‑pass funding package on Nov. 12, and the hemp restrictions take effect after a one‑year phase‑in ending in November 2026.
- The law narrows the federal definition of hemp, caps total tetrahydrocannabinols at 0.4 milligrams per container, explicitly counts THCA, and bars cannabinoids synthesized outside the plant.
- Industry groups warn the cap would eliminate roughly 95% of a $28 billion retail market and put more than 300,000 jobs and thousands of businesses at risk.
- Legal analysts say enforcement will largely fall to states and that the federal change will override many state hemp rules, complicating interstate sales even as state‑licensed marijuana dispensaries remain governed by state programs.
- The move followed intense politics: Mitch McConnell backed the change, Rand Paul’s attempt to remove it failed, dozens of attorneys general pressed for action, and companies are preparing lobbying and legal challenges while warning of a potential shift to illicit sales.