A new Republican-led bill has been introduced in Congress, proposing a reversal of the recent federal ban on most hemp-derived THC products. The measure, which was part of a larger government funding deal signed into law by President Donald Trump, threatens to upend the multi-billion-dollar hemp industry that has grown significantly since the 2018 Farm Bill.

The legislation at the heart of the issue is H.R.6209, titled “The American Hemp Protection Act of 2025,” sponsored by Rep. Nancy Mace (R-SC) and a bipartisan group of cosponsors. This bill seeks to repeal Section 781 of the Continuing Appropriations Act, 2026, which fundamentally alters the legal definition of hemp and imposes severe restrictions on THC content in consumer products.

If this repeal effort fails, the new regulations are set to take effect in late 2026, giving the industry a one-year window to adapt or face what many are calling an “extinction-level event.”

Hemp Ban in Section 781

The controversial provisions in Section 781 of the appropriations bill were included to close what lawmakers refer to as the “hemp loophole.” The 2018 Farm Bill legalized hemp by defining it as cannabis with less than 0.3% delta-9 THC. This unintentionally opened the door for products containing other intoxicating cannabinoids, such as delta-8 THC, derived from legally grown hemp.

The new rules, which Rep. Mace’s bill aims to repeal, introduce several critical changes to the Agricultural Marketing Act of 1946:

• Total THC Calculation: The 0.3% THC limit will no longer apply just to delta-9 THC. Instead, it will be based on “total tetrahydrocannabinols,” a calculation that includes the acidic precursor THCa. This change alone would make much of the currently cultivated hemp non-compliant.
• Synthetics Banned: The law explicitly prohibits cannabinoids that are synthesized or manufactured, even if they are chemically identical to naturally occurring ones. This targets compounds like delta-8 THC and HHC.
• Strict Milligram Cap: For consumer products, the legislation imposes a limit of 0.4 milligrams of total THC per container. This extremely low cap would effectively eliminate the vast majority of hemp-derived edibles, beverages, and other ingestible products from the market.

Proponents of the ban, including some state attorneys general and anti-marijuana groups, argue these changes are necessary to protect public safety, particularly to keep unregulated intoxicating products away from children.

The Fight to Save the Hemp Industry

Rep. Nancy Mace and her cosponsors—Reps. Thomas Massie (R-KY), Zoe Lofgren (D-CA), and James Baird (R-IN)—introduced H.R.6209 on November 20, 2025, to prevent these restrictive measures from taking effect.

In a statement, Mace argued that Section 781 would “deal a fatal blow to American farmers supplying the regulated hemp industry and small businesses, and jeopardize tens of billions of dollars in economic activity.”

She further criticized the way lawmakers passed the provision, stating, “Instead of holding a substantive, open debate on the future of hemp policy in America, prohibitionists inserted this provision into a must-pass government funding bill.”

Mace’s bill, “The American Hemp Protection Act of 2025,” is straightforward: it seeks to repeal Section 781 in its entirety.

However, some industry stakeholders have expressed concern that simply repealing the ban isn’t enough. They argue that the hemp market is in desperate need of a comprehensive federal regulatory framework to address safety, labeling, and age restrictions, which Mace’s current bill does not provide. Without it, the industry remains vulnerable to inconsistent state laws and future legislative attacks.

What This Means for Hemp Businesses and Consumers

The passage of Section 781 has sent shockwaves through the hemp industry. According to a 2023 Whitney Economics report cited by Rep. Mace, the U.S. hemp industry supports over 320,000 jobs and generates $28.4 billion in economic activity.

Industry leaders warn that 90-95% of current hemp products, including many non-intoxicating CBD products that contain trace amounts of THC, would become illegal under the new definition.

For consumers, the ban would drastically limit access to products that millions of Americans report using for wellness and recreation. It could also push the market underground, empowering “shady, black-market actors who care not for consumer safety or the protection of children,” as Mace noted.

The one-year implementation period provides a critical window for advocacy. The hemp industry is now mobilizing to lobby Congress for a legislative solution, whether that is the passage of H.R.6209 or the creation of a more nuanced regulatory framework.

The coming months will be crucial in deciding whether the hemp market will thrive or face elimination through legislation.

The Path Forward

The future of the hemp industry now hangs in the balance. The introduction of “The American Hemp Protection Act of 2025” marks the first official countermove against the sweeping ban included in the government funding bill. While its passage is uncertain, it has ignited a necessary and urgent debate about the role of hemp in the American economy.

The next year will see intense lobbying from all sides. Hemp farmers, business owners, and consumers will need to make their voices heard in Washington to advocate for a solution that ensures product safety and preserves a thriving, legal industry. Without congressional action, the market that blossomed from the 2018 Farm Bill could face a sudden and devastating end.

Follow and Like:

Instagram: @ruderequipment

LinkedIn: Ruder Equipment

Sources: