Federal Bill Would ‘Effectively’ Ban All Consumable Hemp Products—’Including CBD’—Congressional Researchers Say

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.


*— Marijuana Moment is tracking hundreds of cannabis, psychedelics and drug
policy bills in state legislatures and Congress this year. Patreon
supporters pledging at least $25/month get access to our interactive maps,
charts and hearing calendar so they don’t miss any developments.*


*Learn more about our marijuana bill tracker and become a supporter on
Patreon to get access. —*

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.

Most Marijuana Consumers Oppose Trump’s Cannabis Actions So Far, But
Rescheduling Or Legalization Could Bolster Support, Poll Shows

*Photo courtesy of Kimzy Nanney.*

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