What happened?
A last-minute provision added to the bill that reopened the government after 43 days, the longest government shutdown in U.S. history, has changed the future of the hemp industry. As Congress rushed to finalize a deal to reopen the government, lawmakers slipped in a section targeting “intoxicating, hemp-derived cannabinoids”, a direct response to the booming market of delta-8, delta-10, THCA, and other hemp-derived THC products.
This language was not originally part of the conversation surrounding the shutdown. It showed up only in the final bill and passed almost instantly.
Within hours, the bill became law. No debates. No warning. Just a last-minute provision that changed the future of hemp.
What does this bill do?
This bill changes the legal definition of hemp, overturning the 2018 Farm Bill, which previously stated that any hemp product with a concentration of less than 0.3% Delta-9 THC was legal. With the new provision set into law, here are the biggest changes you can expect:
Total THC matters: not just Delta-9 THC
-
“Legal hemp” now must have no more than 0.3% total THC (this includes delta-9, THCA, and other similar cannabinoids) on a dry-weight basis.
Finished hemp products can’t exceed 0.4 mg total THC per container.
-
That is not 0.4 mg per serving, but per container (jar, bottle, package).
Anything not naturally produced by the plant is banned.
-
This targets cannabinoids made through conversion processes, such as Delta-8 from CBD, which is the foundation for most hemp-derived products.
The ban is federally preemptive.
-
This means that even if a state currently allows hemp-derived THC, the federal rule overrides state laws.
There’s a one-year countdown clock.
-
The ban doesn’t go into effect right away. There’s roughly 12 months until full enforcement begins.
What’s next?
The law gives a one-year implementation period: until late 2026. During that time:
Federal agencies will release guidelines.
The FDA and USDA will define what “naturally occurring cannabinoids” means, how testing is handled, and what enforcement looks like.
States will scramble to adjust.
Some will align with the federal rule. Others may attempt exemptions or new state-level frameworks.
Businesses will have to pivot fast.
Many companies will need to reformulate, transition to non-intoxicating hemp, or move into licensed cannabis markets.
Consumers will see big changes.
Products that have become everyday staples, such as gummies, disposables, pre-rolls, infused drinks, and more, may disappear from shelves or drastically change in potency.
Why this matters
The hemp industry has exploded in popularity, especially in states where cannabis is prohibited, increasing access to alternative forms of relief while creating a billion dollar market and job growth. The trade group U.S. Hemp Roundtable estimates that this bill will “wipe out” about 95% of the industry as currently structured, billions of dollars in revenue, and hundreds of thousands of jobs. The new law would also recriminalize hemp-derived products and restrict access to millions of consumers.
Veterans are also facing the brunt of the decision: the policy removes previously approved language that would have let VA doctors recommend medical cannabis to patients. This forces veterans to look to other types of medication for relief, restricting their access to medical cannabis.
Final Thoughts
The hemp ban hidden inside the government shutdown bill widely reshapes the market, redefines legality, and sets the stage for what the future of hemp looks like in America.
Whether this shift becomes a setback or a turning point depends on how the industry responds over the next twelve months.
A Note From LITTO:
While this new federal ban brings big changes, it doesn’t mark the end. We’re already preparing for what comes next, focusing on responsible innovation and compliance that still delivers the experience people love. As the industry evolves, so will we, and we intend to do it with transparency and clarity.
Disclaimer: This article is intended for informational purposes only and is not intended as professional medical advice, diagnosis, or treatment. If you are thinking about incorporating cannabis and hemp derived products (delta-8 THC, delta-9 THC, CBD, etc) into your medicinal routine, please consult a healthcare professional. Do not stop taking any prescribed medications without first consulting your doctor.