A provision in the federal spending bill that ended the recent government shutdown would ban a wide range of hemp-derived cannabinoid products, with the ban taking effect in November 2026. The move would close the hemp “loophole” created by the 2018 Farm Bill and could reshape a market estimated at roughly $28 billion. Advocates warn it may limit legal access to products many consumers use, including for therapeutic reasons, and push people toward unregulated alternatives.
What changed
The 2018 Farm Bill defined hemp as cannabis and derivatives containing no more than 0.3% delta-9 tetrahydrocannabinol (THC) by dry weight, reclassifying hemp as an agricultural product while marijuana remained a Schedule I drug. That definition allowed a thriving market for products such as CBD and hemp-derived delta-8 THC, often sold at smoke shops, gas stations and online—particularly in states without legal recreational cannabis.
The new spending-bill language significantly tightens the federal hemp definition and targets intoxicating cannabinoids. Under the provision, hemp may contain no more than 0.4 milligrams of total THC per container, with “container” defined as the innermost packaging directly in contact with the final hemp-derived product. The bill bans cannabinoids synthesized or manufactured outside the plant—a change aimed at products like delta-8 THC, which is typically produced by chemically converting CBD. It also bans cannabinoids that have “similar effects” to THC; that vague clause has raised concern because it could sweep in a wide array of compounds. The FDA must issue clarifying guidance within 90 days, including a list of cannabinoids covered by the “similar effects” language.
Implications for CBD and other products
CBD itself is non-intoxicating and, in theory, should be THC-free, but many products—especially so-called full-spectrum formulations—contain small amounts of THC and other cannabinoids. The updated hemp definition and strict per-container THC limit could remove many CBD products from the legal market, particularly full-spectrum items. Even products labeled “THC-free” could be affected if testing finds trace THC or synthesized cannabinoids.
Quality-control problems compound these concerns. Research has found mislabeled CBD products that contain measurable THC despite claims to the contrary. Regulators and researchers have also flagged safety issues with some hemp-derived products: the FDA has reported increases in adverse events tied to some hemp cannabinoids and warned about harmful chemicals used in processing, and studies of delta-8 products have detected chemical impurities with uncertain health effects.
Who will be affected
States that already have established recreational and medical cannabis programs are expected to experience less disruption. But states with large hemp industries and limited or no legal cannabis—such as Texas and Kentucky—could be disproportionately affected, losing legal access to products that have been widely available in local markets.
Advocates’ response
Industry and cannabis reform advocates argue the policy choice to ban rather than regulate will create harms. Paul Armentano, deputy director of NORML, said banning the market won’t reduce demand or improve safety and will deny people—some who rely on these products therapeutically—legal access. Matt Kennicott, executive director of the Cannabis Association of New Mexico, warned that bans tend to drive consumers to the black market and called regulation a safer option.
Safety and regulation debate
Proponents of stricter limits point to adverse-event reports and contamination concerns as reasons to curb certain hemp-derived cannabinoids. Opponents counter that thoughtful regulation—standards for manufacturing, testing, labeling and limits on intoxicating compounds—would better protect consumers than an outright prohibition. The upcoming FDA guidance and subsequent regulatory actions will be pivotal in defining which compounds are banned and how enforcement will work.
Bottom line
The spending-bill provision tightens the federal definition of hemp, bans synthesized cannabinoids and introduces a strict per-container THC cap. If implemented in November 2026, it could remove many hemp-derived products, including some CBD formulations, from the legal market—especially in states without legal cannabis—unless regulators provide clarifying rules or states enact alternative legal pathways. Advocates urge regulation over prohibition to protect consumers and preserve access for those using these products for health reasons.
