On November 11, 2025, the U.S. Senate passed a continuing resolution to keep the federal government operating until January 30, 2026, narrowly averting a government shutdown. Lost in the headlines was a policy change with significant long-term implications: the passage of the FY 2026 Agriculture Appropriations Act as part of a legislative “mini bus.” This bill, if it becomes law, fundamentally redefines what “hemp” means at the federal level—and effectively closes the loophole that has fueled the hemp-derived cannabinoid industry since 2018.

Let’s break down what happened, why these changes matter, and the potential impact on the hemp marketplace.

The 2018 Farm Bill: Where the Hemp Boom Began

Under the 2018 Farm Bill, hemp was defined broadly as cannabis sativa plants and derivatives containing less than 0.3% delta-9-tetrahydrocannabinol (THC) by dry weight. This law legalized the cultivation and sale of hemp and its derivatives at the federal level, effectively sparking a booming market for cannabidiol (CBD), delta-8 THC, and a host of other hemp-derived cannabinoids.

Critically, the bill’s language unintentionally left the door open for the manufacture and sale of intoxicating products derived from hemp, as long as they complied with the “under 0.3% delta-9 THC” standard. Enterprising chemists across the country quickly realized they could extract hemp CBD and convert it into psychoactive substances like delta-8, delta-10, HHC, THC-O, and more—all legal under the federal definition provided the starting material was hemp.

What Changed in the Senate This Week?

As part of negotiations to avert a government shutdown, the Senate passed the FY 2026 Agriculture Appropriations Act, which contains new, tightly written language that closes this “hemp loophole.” The new definition explicitly excludes hemp-derived THC and all other hemp-derived intoxicating substances from the legal definition of hemp.

More specifically:

• No More Intoxicating Hemp: Any hemp-derived product that results in intoxication—regardless of its delta-9 THC content—would no longer be considered legal hemp.
• All Forms of Hemp-Derived THC Impacted: The closure targets not only delta-8 and delta-10 THC, but also any other cannabinoid made from hemp that produces psychoactive effects.

This change did not happen overnight. Health organizations such as CADCA (Community Anti-Drug Coalitions of America), along with public health advocates and several members of Congress, have raised sustained concerns about the unregulated sale of hemp-derived intoxicants, especially their availability to youth through convenience stores and online marketplaces.

Why Close the Loophole?

From the advocates’ perspective, the loophole represented a significant public safety risk:

• Youth Access: Many intoxicating hemp products have been sold in gummies, candies, or vape cartridges—often with little age verification required.
• Unregulated Production: Unlike state-licensed marijuana products, hemp-derived intoxicants are typically produced outside of rigorous regulatory oversight.
• Health Concerns: There have been reports of accidental poisonings, workplace complications, and inconsistent product labeling and potency.

CADCA and its partners have worked “tirelessly for many years” to address these concerns, and the new definition represents their advocacy realized.

What Happens Next? The Bill Still Faces Two Hurdles

Importantly, this new definition is not yet law. While the Senate has approved it, two significant steps remain:

1. House Passage: The bill must still pass the U.S. House of Representatives. While bipartisan agreement exists on many aspects of the minibus, the new hemp language could become a flashpoint if industry groups mobilize against it.
2. Presidential Signature: Once passed by both chambers, the measure must be signed into law by the President.

If both occur, the new definition of hemp will become the law of the land—instantly transforming the legal landscape for thousands of hemp operators, retailers, and consumers across the U.S.

The Future of the Hemp Industry

Should the new definition become law, here’s what will likely change:

• Hemp-Derived THC Banned: Products like delta-8, delta-10, and other lab-created cannabinoids from hemp will become federally illegal.
• CBD Remains Legal—If Non-Intoxicating: Non-intoxicating CBD products derived from hemp would still be legal, provided they meet all other federal and state requirements.
• State Law vs. Federal Law: States retain the power to regulate hemp as they see fit, but any business operating in interstate commerce will have to comply with the new federal standard.
• Enforcement Questions: The FDA, DEA, and other agencies will likely issue guidance on how the new law will be enforced, and legal battles over interpretation seem inevitable.

What Should Businesses and Consumers Do Now?

If you’re involved in the hemp marketplace—whether as a manufacturer, retailer, or consumer—it’s time to:

1. Monitor the Bill’s Progress: Watch for updates as the minibus moves through the House and possibly the White House.
2. Review Inventory: Consider the legal risks of carrying intoxicating hemp-derived products, especially those marketed as “legal highs.”
3. Understand State Laws: Some states already restrict or ban hemp-derived intoxicants; the federal shift may prompt others to revisit their policies.
4. Engage with Policymakers: If you have opinions on the issue, now is the time to make your voice heard with legislators.

In Summary

The 2018 Farm Bill’s broad definition of hemp opened the door to a market for legal but intoxicating hemp-derived products—an unintended consequence now poised for an overhaul. The newly passed Senate appropriations bill would clarify, once and for all, that hemp means non-intoxicating cannabis only. The change is the result of years of advocacy from health organizations and concerned lawmakers, with major implications for the CBD and cannabinoid industry.

While the bill still awaits final passage and enactment, this week marks a turning point. Legal hemp may soon mean only non-intoxicating products, closing a chapter on one of the fastest-evolving corners of the American cannabis industry.

Stay tuned—change is coming.