Federal Bill Would ‘Effectively’ Ban All Consumable Hemp Products—’Including CBD’—Congressional Researchers Say
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A federal spending bill that’s advancing in the House would “effectively” prohibit hemp-derived cannabinoid products, including CBD, congressional researchers say.
In a report published by the Congressional Research Service (CRS) last week, legislative analysts looked at the potential impact of hemp-related provisions that advocates and stakeholders say would devastate a core sector of the industry.
While report language attached to the 2026 appropriations bill was recently amended to clarify lawmakers’ intent not to disrupt the non-intoxicating cannabinoid market—signaling that products like CBD shouldn’t be banned—the legislation itself hasn’t changed and could still jeopardize the industry without further amendments to its provisions.
The CRS analysis, which came out after the bill’s report language was revised, seems to validate the industry’s concerns about the legislation, explaining how it would “expand on the existing statutory definition of hemp,” which currently means cannabis containing no more than 0.3 percent THC by dry weight, “to include industrial hemp products and exclude hemp-derived cannabinoid products.”
“Excluding hemp-derived cannabinoid products from the federal definition of hemp effectively would prohibit production and sale of hemp-derived cannabinoids, derivatives, and extracts thereof, including cannabidiol (CBD),” it says. “Excluded cannabinoids would cover also non-naturally occurring and synthesized or manufactured compounds.”
“The proposed provision would make other broader changes to the hemp definition by changing the allowable limits of THC—the leading psychoactive cannabinoid in the cannabis plant—to be determined on the basis of its total THC, including tetrahydrocannabinolic acid (THCA), instead of delta-9 THC. This would codify the regulatory practice established in USDA’s 2021 final hemp regulations. The provision would exclude from hemp ‘any viable seeds from a Cannabis sativa L. plant’ that exceed a total THC (including THCA) of 0.3 percent in the plant on a dry weight basis.”
As it stands, the legislation has cleared a House Appropriations subcommittee—but while it was discussed in the full committee last week, members ultimately did not act on it before recessing for a district work period. The panel is set to take the bill back up next week.
Before breaking, however, the full panel did adopt a manager’s amendment to the attached report from Rep. Andy Harris (R-MD), a vocal opponent of cannabis reform. Despite his personal opposition, the revised report clarifies that the panel does not intend to prohibit non-intoxicating cannabinoid products with “trace or insignificant amounts of THC” that were federally legalized during the first Trump administration.
“In determining the quantifiable amounts, the Committee does not intend for industrial or nonintoxicating hemp-derived cannabinoid products with trace or insignificant amounts of THC to be affected,” it says.
Harris said in opening remarks at last week’s hearing that the legislation closes “the hemp loophole from the 2018 Farm Bill.”
He argued that the policy “has resulted in the proliferation of intoxicating cannabinoid products, including delta-8 and hemp flower, being sold online and in gas stations nationwide under the false guise of being ‘USDA approved.’”
The proposed policy championed by the congressman would drastically change current statute. It would, however, maintain the legal status of “industrial hemp” under a revised definition that allows for the cultivation and sale of hemp grown for fiber, whole grain, oil, cake, nut, hull, microgreens or “other edible hemp leaf products intended for human consumption.”
The hemp language is largely consistent with appropriations and agriculture legislation that was introduced, but not ultimately enacted, under the last Congress.
Hemp industry stakeholders rallied against that proposal, an earlier version of which was also included in the base bill from the subcommittee last year. It’s virtually identical to a provision of the 2024 Farm Bill that was attached by a separate committee last May via an amendment from Rep. Mary Miller (R-IL), which was also not enacted into law.
There are some differences between the prior spending bill and this latest version for 2026, including a redefining of what constitutes a “quantifiable” amount of THC that’d be prohibited for hemp products.
It now says that a quantifiable amount is “based on substance, form, manufacture, or article (as determined by the Secretary of Health and Human Services in consultation with the Secretary of Agriculture),” whereas it was previously defined as an amount simply “determined by the Secretary in consultation with the Secretary of Health and Human Services.”
The proposed legislation also now specifies that the term hemp does not include “a drug that is the subject of an application approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355),” which seems to carve out an exception for Food and Drug Administration- (FDA) approved drugs such Epidiolex, which is synthesized from CBD.
A leading alcohol industry association, meanwhile, has called on Congress to dial back language in the House spending bill that would ban most consumable hemp products, instead proposing to maintain the legalization of naturally derived cannabinoids from the crop and only prohibit synthetic items.
Members of Wine & Spirits Wholesalers of America (WSWA) also met with lawmakers and staffers in April to advocate for three key policy priorities that the group says is based on “sound principles of alcohol distribution.” They include banning synthetic THC, setting up a federal system for testing and labeling products and establishing state-level power to regulate retail sales.
Separately, key GOP congressional lawmakers—including one member who supports marijuana legalization—don’t seem especially concerned about provisions in the new spending bill that would put much of the hemp industry in jeopardy by banning most consumable products derived from the plant.
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Jonathan Miller, general counsel of the U.S. Hemp Roundtable, told congressional lawmakers in April that the market is “begging” for federal regulations around cannabis products.
At the hearing, Rep. James Comer (R-KY) also inquired about FDA inaction around regulations, sarcastically asking if it’d require “a gazillion bureaucrats that work from home” to regulate cannabinoids such as CBD.
A report from Bloomberg Intelligence (BI) last year called cannabis a “significant threat” to the alcohol industry, citing survey data that suggests more people are using cannabis as a substitute for alcoholic beverages such a beer and wine.
Last November, meanwhile, a beer industry trade group put out a statement of guiding principles to address what it called “the proliferation of largely unregulated intoxicating hemp and cannabis products,” warning of risks to consumers and communities resulting from THC consumption.
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Photo courtesy of Kimzy Nanney.
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