Government Shutdown Ends With Language Poised to Overhaul Federal Hemp Policy
- Courtney N. Moran, LL.M.
- 5 days ago
- 3 min read
Updated: 14 minutes ago
The federal government has finally reopened, after 43 days, through continuing resolution legislation funding the 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.
Two key sections relating to hemp are among the 394 pages, including:
Section 737- restricting funding used to prohibit the transportation, processing, sale, or use of hemp
Section 781- posing to overhaul the federal authority for hemp!
The good news- the language in Section 781 does not take effect for 365 days & 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
FDA Directives
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”
Read the full text:
What does this new federal hemp policy mean for the industry?
The collective hemp industry has 365 days to get more workable language adopted into law! This could be accomplished through the Farm Bill, a stand alone bill, or the FY27 appropriations bill. This is your time to act and engage the right lobbying team to ensure your concerns are heard!
How can the industry take action today to prevent this new federal hemp policy language from being implemented?
Ag Hemp Solutions is working in coordination with 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. Funding is needed for these efforts! To get involved, contact the Agricultural Hemp Solutions team or become a member of the National Hemp Association.
Note- while the National Hemp Association has pledged to focus on the fiber and grain sectors, the organization is working to support hemp as a whole, including cannabinoids and hemp-derived cannabinoid products, for this immediate federal policy need in coordination with other national organizations. NHA has a trusted seat at the table, and we recommend becoming a member and providing financial support to NHA through this process.
Make a Donation!
Ag Hemp Solutions Is Here to Help Your Business!
Our services include consulting, lobbying, legislative strategy, policy monitoring, and tailored representation to help you navigate and influence state and federal policy.
Secure your seat at the table and schedule a call with our team today, here.