The sweeping redefinition of ‘hemp’ in the US following the passage of the funding bill threatens non-intoxicating CBD processors while pushing consumers toward unregulated markets
Donald Trump, the president of the United States, signed legislation into law on 12 November that put an end to what was then known as “the longest government shut down in history.” But as the US government opens, an industry that is worth billions in revenue will be closing.
The following are some of the ways to get in touch with us. MEDCAN24 As reported by The Washington Post last week, this bill contains a crucial passage that will redefine federal classification for hemp and end the grey market boom of half a decade fueled by delta-8-THC, HHC and other semisynthetic cannabis cannabinoids.
As many had predicted, however, the scope of this ban extends beyond those who are targeted. It threatens legitimate CBD-based businesses that do not intoxicate and is met with immediate legal pushback.
A Problem of Intermediate Products: Collateral Damage
This provision is buried within the bill to fund the federal government that brought an end to a shutdown lasting 41 days. It redefines hemp in federal law, closing loopholes caused by the Farm Bill of 2018.
Although proponents claim that it will restore hemp to its agricultural origin, stakeholders in the industry warn this measure could destroy the entire hemp industry.
Deb Tharp is a cannabis industry analyst who regularly contributes to the Cannabis Industry Journal. She believes that one of its most unintended consequences may be its effect on CBD-based businesses.
“Hemp does not include any intermediate hemp-derived cannabinoid products containing more than 0.3% combined total of total tetrahydrocannabinols and any other cannabinoids that have similar effects,” Tharp explained, citing the new statutory language.
It is important to note that, during the extraction and refinement process, most CBD crudes and distillates routinely surpass 0.3% THC total on a mass basis. This occurs even though the finished CBD products are well below this limit.
Now, the intermediate materials, instead of hemp, are on paper. Tharp pointed out that once they reach the effective date, these materials will become controlled substances. The stuff that is in the big stainless steel tank is now illegal, even if it’s non-intoxicating.
Pushback on Legislative Agenda Begins
The South Carolina representative Nancy Mace presented the bill on November 17. ‘American Hemp Protection Act of 2025,’ римеание до редактировани модулн делав стат 781 от continu resolution на 13 нор 2026.
👀👀Look what we have here… pic.twitter.com/RN6Djyqoga
— Midwest Hemp Council (@Midwest_Hemp) November 18, 2025
It is not surprising that the timing of this announcement reflects growing economic concerns. Mace’s opposition to the provision was based on a 2023 Whitney Economics study that found US hemp generates $28,4bn of economic activity, and approximately $1.5bn state tax revenue.
Mace, despite voting in favor of the funding package for government agencies, criticised the way the hemp language had been inserted. She said in the record of the Congress that the prohibitionists had slipped the hemp provision into the must-pass funding legislation, rather than having a substantive debate.
Her repeal legislation, however, offers no alternative regulatory framework—leaving unresolved the question of how to address legitimate concerns about unregulated intoxicating products while protecting the broader hemp industry.