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Federal Law Could Kill Hemp-Derived THC Market

The new federal definition bans intoxicating hemp-derived THC products and sets a 0.4 mg THC-per-package limit, with a one-year transition before enforcement.

  • On Wednesday, Congress inserted language in the government-reopening spending bill that bans hemp-derived THC products like delta-8 gummies and updates the federal hemp definition under stricter control.
  • The 2018 Farm Bill defined hemp by a 0.3 percent delta-9 THC threshold, enabling manufacturers of hemp-derived THC products like delta-8 THC to flood the market, with sales growing more than 1,000 percent from 2022 to 2023.
  • The law sets a 0.4 milligrams total THC per package limit, bars cannabinoids modified or synthesized outside the plant, and includes a one-year transition period before enforcement begins.
  • Retailers and consumers may see banned hemp-derived products disappear from shelves next year, while traditional non-intoxicating hemp products remain legal, though farmers, manufacturers and retailers face disruption.
  • The hemp industry valued at $28 billion faces controversy as supporters claim the restriction creates clearer standards, while critics call the spending bill insertion 'sneaky.
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USA Today broke the news in United States on Friday, November 14, 2025.
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