A Shifting Federal Landscape for Hemp
Congress's passage of the Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Act, implemented
through amendments to 7 U.S.C. § 1639o, marks a major
inflection point for the roughly $30 billion US consumable hemp
market. Effective November 12, 2026, the law closes the
long-standing "hemp loophole" by narrowing the federal
definition of hemp and imposing strict total THC caps. As a result,
most intoxicating hemp products will be reclassified as marijuana
under the Controlled Substances Act.1
What the Law Changes
The amendments enacted through H.R. 5371 (Continuing Budget
Resolution, signed November 12, 2025) significantly overhaul the
federal definition of hemp under 7 U.S.C. § 1639o, replacing
the familiar delta-9 THC standard with a broader total THC
framework. Under the revised statute, hemp may contain no more than
0.3% tetrahydrocannabinols, including tetrahydrocannabinolic acid
(THCA), a
