Federal Crackdown On Hemp-Derived THC, Cannabinoids Advances In Congress, Industry Warns Of Collapse

A key House committee has advanced a federal spending bill that could effectively ban most hemp-derived cannabinoid products, including THCA flower, delta-8 THC and even full-spectrum CBD, by redefining hemp and limiting its legal uses.

As reported by Marijuana Moment, the measure was approved Thursday in a 9-7 vote by the House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, with support from Rep. Andy Harris (R-MD), the subcommittee chair. It now moves to the full House Appropriations Committee for markup on June 11.

Redefining Hemp, Banning Cannabinoids

The 138-page fiscal year 2026 bill proposes a revised definition of hemp that would prohibit any product containing:

• A "quantifiable" amount of THC or THCA
• Cannabinoids with effects "similar to THC," or marketed as such (e.g., delta-10, THCP)
• Cannabinoids synthesized or manufactured outside the plant

The bill narrows hemp's federally legal applications to industrial outputs such as fiber, grain, oil, nut, microgreens and certain edible leaves, not common cannabinoid products.

An apparent carve-out remains for FDA-approved cannabinoid drugs like Epidiolex.

"[The legislation] closes the hemp loophole from the 2018 Farm Bill that has resulted in the proliferation of intoxicating cannabinoid products," Harris said.

He added that unregulated hemp-derived intoxicants are often sold "under the false guise of being USDA-approved" and said federal action was necessary to protect consumers and children.

Industry Backlash: ‘A Farmer-Crushing, Job-Killing Ban’

The move sparked an immediate backlash from hemp and cannabis advocates.

"We are disappointed that Chairman Harris is yet again trying to inappropriately shoehorn a farmer-crushing, job-killing hemp ban into a spending bill," said Jonathan Miller, general counsel of the U.S. Hemp Roundtable, in a statement.

"If enacted, this would eliminate the vast majority of hemp-derived products currently sold nationwide… The hemp industry will be united in working together to defeat this misguided attempt to destroy a market that provides treasured health and wellness products to millions of American consumers."

According to the Roundtable, the U.S. hemp industry has grown to $28.4 billion in revenue, supports 328,000 agriculture and retail jobs, and generates more than $1.5 billion in state tax revenue.

A public action page has been launched at hempsupporter.com.

Cannabis Advocates, Alcohol Industry Also Push Back

Critics argue the bill's language is overly broad and risks pushing the hemp market further underground.

"Despite legislators' intent, this budget provision won't change the fact that these products are widely available," said Aaron Smith, CEO of the National Cannabis Industry Association.

"But it will ensure these products are made and sold without oversight, delivering a big win to the drug cartels at the expense of public health and safety."

Even the Wine & Spirits Wholesalers of America criticized the provision, calling it "troublesome" and warning that it would "undermine states across the country who have enacted critical regulations that govern intoxicating hemp products."

WSWA supports federal regulation of hemp-derived intoxicants, but argues that the approach should target synthetics specifically and allow states to retain oversight over the broader market.

Financial Markets Watching Closely

Industry analysts are monitoring the proposal's potential impact, though passage in its current form remains uncertain.

"THC bans would not kill hemp farmers because hemp is the most agile crop in the world and has a litany of non-intoxicating use cases," wrote Todd Harrison in his “Cannabis Confidential” newsletter. "And safe, tested, regulated THC is available through state-legal cannabis operators, as intended."

The provision resembles Rep. Mary Miller's failed amendment to the 2023 Farm Bill, which was not enacted. Still, the inclusion of such language in a spending bill raises new stakes for the upcoming appropriations cycle.

What's Next?

• June 11: Full House Appropriations Committee markup
• Industry lobbying expected to intensify
• State regulators, MSOs and beverage companies likely to weigh in

Benzinga will continue tracking the bill's progress and the growing response from U.S. hemp, cannabis and consumer health stakeholders.

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