Federal Spending Bill Threatens Hemp Industry with THC Product Ban
Nov, 13 2025
The new regulation prohibits products containing more than 0.4 milligrams of THC per container. The U.S. Hemp Roundtable has raised alarms that this decision could severely impact the $28 billion hemp industry and threaten over 300,000 jobs across the United States. They estimate that the ban could eliminate 95% of the market, leading to the closure of numerous small businesses and farms, as well as a loss of approximately $1.5 billion in tax revenue for states.
Senator Rand Paul proposed an amendment to remove this provision from the Senate bill, but the Senate voted to table his amendment. Paul warned that the timing of this ban is particularly detrimental for American farmers, suggesting it could effectively eradicate the hemp industry.
A hemp farmer from Woodstock, Illinois, named Stacy expressed her concerns during a call to C-Span, stating that the ban would devastate her business, particularly affecting her non-intoxicating topical products. She highlighted the broader economic implications, noting that many individuals, including farmers and retailers, would be adversely affected.
Supporters of the provision, including Senator Mitch McConnell, argue that it addresses the exploitation of a loophole created by the 2018 Farm Bill, which they claim has allowed companies to produce intoxicating substances from legal amounts of THC. This perspective is echoed by several state attorneys general, who have warned that the loophole has led to the proliferation of underregulated synthetic THC products, posing risks to public health and safety.
However, the U.S. Hemp Roundtable contends that over 90% of non-intoxicating hemp-derived products exceed the 0.4 milligram limit, which would place many consumers, including seniors and veterans who rely on these products for pain management and sleep, in violation of federal law. This situation could disrupt their access to necessary care and force them to seek potentially harmful alternatives.