Language Set to Change Federal Hemp Policy As Government Shutdown Ends

After 43 days, the federal government has finally reopened through enactment of continuing resolution legislation funding the federal government through FY26. The bill, Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026, passed with a vote of 222 to 209.

Among the 394 pages, are several sections relating to hemp, including:

Section 737- restricting funding used to prohibit the transportation, processing, sale, or use of hemp 

Section 781- posing to severely change federal hemp policy!

The good news- the language does not take effect for 365 days! And also directs FDA to act within 90 days!

Section 781: Effective 365 days after the enactment of this Act, Section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o) is amended—  ‘‘(1) HEMP.— ‘‘(A) IN GENERAL.—The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total tetrahydrocannabinols concentration (including tetrahydrocannabinolic acid) of not more than 0.3 percent on a dry weight basis. 

Key Definition Changes in Section 781:

• Redefines hemp at 0.3% TOTAL THC

• EXCLUDES from definition of hemp:

  • Viable seeds from Cannabis plants that exceed 0.3% total THC

  • “Intermediate hemp-derived cannabinoid products”, containing:

    • Cannabinoids NOT capable of being naturally produced in the plant

    • Cannabinoids synthesized or manufactured OUTSIDE the plant

    • Products with more than 0.3% total THC including THCA AND cannabinoids with similar effects as THC “as determined by the Secretary of Health and Human Services”

  • “Final hemp-derived products” containing 

    • Cannabinoids NOT capable of being naturally produced in the plant

    • Cannabinoids synthesized or manufactured OUTSIDE the plant

    • Products GREATER THAN 0.4 MG combined total PER CONTAINER, including THCA AND cannabinoids with similar effects as THC “as determined by the Secretary of Health and Human Services”

• New definition for Industrial Hemp (stalk, fiber, grain, microgreens, research hemp, seeds to produce industrial hemp)

• New definition for Hemp-Derived Cannabinoid Product

  • Intermediate OR Final product with cannabinoids and intended for human or animal use

• New definition for Intermediate Hemp-Derived Cannabinoid Product 

  • Not in final form, a preparation intended for use by a human or animal, OR

  • Product to be prepared with or into any other substance prior to administration or consumption

• Defines Container for final hemp derived cannabinoids product

• Excludes FDA approved drugs

Section 781 FDA Directive

Within 90 days, FDA to publish:

• List of cannabinoids capable of being naturally produced by Cannabis sativa L.

• List of all tetrahydrocannabinol class cannabinoids known to be naturally occurring in the plant

•  List of all other known cannabinoids with similar effects to tetrahyrocannabinol class cannabinoids

• Additional specificity for “container”

What does this mean?

The collective hemp industry has 365 days to get more workable language adopted into law.

How can the industry take action today to prevent this language from being implemented?

In coordination with our sister lobbying firm Agricultural Hemp Solutions, there is a working group of the national nonprofit organizations coming together “Pushing Progress” for a true united front to address the concerns of Congress, regulators, health officials, and law enforcement, with the interests of all sectors of hemp stakeholders and consumers. To get involved contact Agricultural Hemp Solutions or become a member of the National Hemp Association. 

The EARTH Law, LLC  team is available to provide expert guidance in navigating the complexities of these new federal hemp regulations.  Please schedule a consultation at info@earthlawllc.com or 541-632-3946.