Hemp Restrictions in FY2026 Agriculture Appropriations Bills

Strategic Insights -

House and Senate committees on appropriations have proposed changes to the hemp definition in the FY2026 Agriculture appropriations bills, aimed at restricting the commercial production, sale, and distribution of certain hemp-derived cannabinoid products. The current statutory definition of hemp, established in the 2018 farm bill, excludes it from the definition of marijuana and removes federal regulation of hemp from the Controlled Substances Act. However, the proposed changes would redefine hemp to include industrial hemp products and exclude certain hemp-derived cannabinoid products. The provisions aim to address loopholes in the current definition, which industry groups argue would "dismantle" the U.S. hemp industry.

Key Takeaways:

  • The House and Senate committee-reported bills (H.R. 4121, Sec.759, and S. 2256, Sec.781, respectively) would amend the statutory definition of hemp to clarify the types of hemp products considered lawful under the Domestic Hemp Production Program (7 U.S.C. Sec.Sec.1639o-s) administered by the U.S. Department of Agriculture (USDA).
  • The current statutory definition of hemp was established in the Agriculture Improvement Act of 2018 (P.L. 115-334), which excludes it from the definition of marijuana and removes federal regulation of hemp from the Controlled Substances Act (21 U.S.C. Sec.Sec.801 et seq.).
  • The proposed changes would expand the existing definition of hemp to include industrial hemp products and exclude certain hemp-derived cannabinoid products, including those with non-naturally occurring and synthesized or manufactured compounds.
  • The provisions would also exclude viable seeds from the cannabis plant that exceed a total THC (including tetrahydrocannabinolic acid [THCA]) of 0.3% in the plant on a dry weight basis.
  • The Senate committee report would require FDA to report on projected market impacts and stakeholder engagement, including information on uniform packaging, labeling, testing, and adverse event reporting requirements.
  • Industry groups contend that the provisions would "dismantle" the U.S. hemp industry, while supporters argue that they would address loopholes in the current definition that are being exploited by manufacturers of unregulated hemp-derived cannabinoid products.

Statistics:

  • 0.3% loophole: the statutory definition of hemp currently allows for a THC concentration of up to 0.3% on a dry weight basis (7 U.S.C. Sec.1639o).
  • THCA (Tetrahydrocannabinolic acid) concentration: the proposed changes would require hemp to be tested on the basis of total THC, including THCA (S. 2256, Sec.781).
  • Industrial hemp products: the proposed changes would define industrial hemp as hemp grown for non-cannabinoid uses, including for fiber or for grain/seed, or for immature plants (e.g., "microgreens or other edible leaf products") (H.R. 4121, Sec.759).
  • Hemp-derived cannabinoid products: the proposed changes would define hemp-derived cannabinoid products as "any intermediate or final product derived from hemp (other than industrial hemp), that ... contains cannabinoids in any form; and ... is intended for human or animal use through any means of application or administration, such as inhalation, ingestion, or topical application" (S. 2256, Sec.781).

Sources:

  • Congressional Research Service. (2025, August 28). Hemp Restrictions in FY2026 Agriculture Appropriations. Retrieved from https://www.congress.gov/crs_external_products/IN/PDF/IN12565/IN12565.5.pdf
  • Agriculture Improvement Act of 2018. (P.L. 115-334).
  • House Committee on Agriculture. (2025, July 31). FY2026 Agriculture Appropriations Bill (H.R. 4121).
  • Senate Committee on Agriculture, Nutrition, and Forestry. (2025, June 25). FY2026 Agriculture Appropriations Bill (S. 2256).
  • Cannabis Regulators Association. (n.d.). Loopholes in the Current Definition of Hemp. Retrieved from