New Hemp Law Could Wipe Out Multi-Billion Dollar Industry
Congress has rewritten the definition of hemp, potentially eliminating most hemp-derived products from the market starting in November 2026. This move could lead to mass layoffs and significant financial losses for the industry, which is currently worth $28 billion and employs over 300,000 people.
The 2018 Farm Bill legalized hemp for cultivation, processing, and sale as long as it contained no more than 0.3% THC. However, a loophole allowed for hemp-derived products with intoxicating effects, such as delta-8 THC, THCA, and others. The new law, passed as part of the government funding bill, closes this loophole by banning products containing more than 0.4 milligrams of total THC per container.
The revised definition of hemp will take effect in November 2026, giving businesses time to adjust. However, many popular hemp-related products, including delta-8 vapes, delta-10 gummies, and HHC edibles, will become federally illegal. The Food and Drug Administration (FDA) will need to create a list of affected cannabinoids within 90 days of the bill’s enactment.
Industry leaders are warning of likely layoffs and enormous losses in revenues. “We have lost the battle this time,” said Jonathan Miller, general counsel for the U.S. Hemp Roundtable. “In effect, this is a total, all-out, complete ban on hemp products in the United States.”
The new law could also complicate workplace drug testing, as it may be difficult to determine whether a positive test result is due to legal hemp or marijuana use. Additionally, it may create conflict-of-law issues in states that have legalized hemp, where businesses may struggle to comply with both state and federal laws.
The enforcement of the new law remains unclear, with congressional researchers stating that it is unclear how the federal government will enforce the new prohibitions. The hemp industry is in a state of uncertainty, with many businesses facing an uncertain future.
