Cannabiz Supply | Congress Passes a Ban on Hemp: What It Means and What's Next

Congress Passes a Ban on Hemp: What It Means and What’s Next

By: Admin Cannabiz

27 November, 2025

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Gavel on legislation documents representing the Hemp Ban

In a surprising move, the U.S. Congress has passed a federal ban on hemp products containing certain cannabinoids, including Delta-8 THC and THCA, as part of a government spending bill signed by President Trump on November 12, 2025. This legislation aims to close a perceived "loophole" in the 2018 Farm Bill, which legalized hemp and sparked a multibillion-dollar industry. But what does this mean for the hemp industry, and is there a way to reverse it?

The New Restrictions: What’s Changing?

The ban introduces three major changes to the regulatory landscape:

THC Limit

Hemp products must contain less than 0.3% of Delta-9-THC and THCA combined, a stricter threshold than before.

Synthetic Ban

Products with synthesized or manufactured cannabinoids (like Delta-8 THC) are now strictly prohibited.

0.4mg Cap

A limit of 0.4 milligrams of THC or similar cannabinoids per container, effectively banning most intoxicating hemp products.

These changes could wipe out an estimated $28 billion industry, impacting over 300,000 jobs and leaving farmers, manufacturers, and retailers scrambling.

Impact on the Hemp Industry

The effects are far-reaching across the entire supply chain:

Businesses

Many hemp-derived products, including CBD oils, vapes, and edibles, may become illegal. Companies have a 365-day grace period to comply or challenge the law.

Consumers

Access to popular products like Delta-8 THC and THCA flower will shrink, affecting users seeking alternatives to traditional cannabis.

Farmers

Hemp growers face uncertainty, with potential losses in a market that’s already struggling with oversupply.

Can It Be Changed?

While the ban is now law, there are paths forward:

Legal Challenges: Industry groups like the American Trade Association for Cannabis and Hemp (ATACH) are preparing lawsuits.
New Legislation: Lawmakers, including Senator Rand Paul, have vowed to introduce bills to reverse or adjust the restrictions.
State Actions: States with existing hemp programs may push back, though federal supremacy complicates enforcement.

The hemp industry isn’t going down without a fight. As Chris Lindsey of ATACH stated, “Our new mission: 365 days to regulate, NOT ban.”

What’s Next?

The coming year will be crucial for stakeholders to adapt, advocate, and possibly reshape the rules.

Advocacy: Engage with lawmakers and industry groups to push for clearer regulations.
Compliance: Businesses should review products and prepare for testing and labeling adjustments.
Innovation: Explore non-intoxicating hemp products or pivot to federally compliant alternatives.

The hemp ban highlights the ongoing tension between regulation and innovation in cannabis policy. While it poses significant challenges, it also opens a dialogue about the future of hemp and cannabis in the U.S.