Hemp Restrictions in FY2026 Agriculture Appropriations

Strategic Insights -

The FY2026 Agriculture appropriations bills in both the House and Senate aim to redefine the statutory definition of hemp, restricting the commercial production, sale, and distribution of certain hemp-derived cannabinoid products. The proposed changes would clarify the types of industrial hemp products considered lawful under the Domestic Hemp Production Program, administered by the US Department of Agriculture (USDA). This move is a response to the "hemp loophole" that has resulted in the proliferation of unregulated intoxicating hemp products.

Key Takeaways:

  • The House and Senate Committees on Appropriations have approved FY2026 Agriculture appropriations bills (H.R. 4121 and S. 2256) that redefine the statutory definition of hemp to restrict the commercial production, sale, and distribution of certain hemp-derived cannabinoid products.
  • The proposed changes would amend the hemp definition to clarify the types of products considered lawful under the Domestic Hemp Production Program (7 U.S.C. Sec.Sec.1639o-s) administered by the USDA.
  • The current statutory definition of hemp, established in the Agriculture Improvement Act of 2018 (P.L. 115-334), would be expanded to include industrial hemp products and exclude certain hemp-derived cannabinoid products.
  • The amendment would provide that the allowable limits of THC (total tetrahydrocannabinol, including THCA) be determined on the basis of its total THC, including THCA, instead of delta-9 THC, as codified in USDA's 2021 final hemp regulations.
  • The House committee report would require that FDA establish a task force to determine the level of quantifiable amounts of THC in hemp-derived cannabinoid products and provide science-based guidance to ensure product safety, consumer confidence, and regulatory clarity.
  • 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 policy changes would "dismantle" the U.S. hemp industry.

Statistics:

  • The FY2026 Agriculture appropriations bills aim to restrict the commercial production, sale, and distribution of certain hemp-derived cannabinoid products.
  • The proposed changes would clarify the types of industrial hemp products considered lawful under the Domestic Hemp Production Program (7 U.S.C. Sec.Sec.1639o-s).
  • The Agricultural Improvement Act of 2018 (P.L. 115-334) established the statutory definition of hemp, which would be expanded to include industrial hemp products and exclude certain hemp-derived cannabinoid products.
  • THC (total tetrahydrocannabinol, including THCA) would be determined on the basis of its total THC, including THCA, instead of delta-9 THC, as codified in USDA's 2021 final hemp regulations.
  • The House committee report would require that FDA establish a task force to determine the level of quantifiable amounts of THC in hemp-derived cannabinoid products.

Sources:

  • Congressional Research Service. (2025, July 17). Hemp Restrictions in FY2026 Agriculture Appropriations. Insight White Paper (No. IN12565).
  • House Committee on Appropriations. (2025). H.R. 4121, FY2026 Agriculture Appropriations Bill.
  • Senate Committee on Appropriations. (2025). S. 2256, FY2026 Agriculture Appropriations Bill.