The multi-billion-dollar hemp industry was jolted when Congress passed a spending bill that threatened to upend much of the market. Tucked into legislation to end the recent government shutdown was a provision changing the federal definition of hemp, potentially rendering up to 95 percent of currently available products illegal. Now, a bipartisan group of lawmakers has introduced a bill that could delay the impending hemp ban, buying the industry time and opening the door to a broader compromise.
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The new hemp law is set to take effect 365 days after enactment, setting the market’s doomsday clock to November 12th, 2026. Representative Jim Baird, a Republican from Indiana, filed a bill to change the language to three years, moving the game clock back to 2028. The legislation is co-sponsored by Republicans James Comer of Kentucky, Gabe Evans of Colorado, and Tim Moore of North Carolina, as well as Democrat Angie Craig of Minnesota.
The extra time could give industry stakeholders a chance to work with Congress to find common ground on hemp.
“The entire hemp industry is united behind passage of HR 7010,” Jonathan Miller, general counsel for the U.S. Hemp Roundtable, told GreenState. “A two-year extension of the hemp moratorium is critical to provide farmers certainty concerning their 2026 crops and to provide an appropriate runway to allow for the passage and implementation of a robust regulatory regime for hemp products.”
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The 2018 Farm Bill set the definition of hemp to 0.3 percent THC by dry weight. That framework enabled a surge in CBD products, as well as intoxicating hemp-derived items such as THC beverages and delta-8 vapes.
Under the new definition, hemp products must contain no more than 0.4 milligrams of THC per package. The vast majority of hemp-based consumer packaged goods fall above that threshold—including most full-spectrum CBD products like gummies and tinctures.
President Trump addressed the impending hemp policy change in a December executive order. The directive, which also included a renewed push for cannabis rescheduling, called on Congress to update the definition of hemp to ensure Americans have access to CBD.
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During the signing ceremony, Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, announced a plan to cover up to $500 in approved hemp products for seniors.
Updating federal hemp policy will likely take months, if not years, and Rep. Baird’s bill could be necessary for stakeholders to reach consensus. Many industry operators say they support clearer federal regulation, and an extended timeline could help facilitate that process.
