Lawmakers Propose Alternatives To Federal Hemp Product Crackdown, Here’s What Industry Says

The hemp market in the U.S. is set to face new federal restrictions scheduled to take effect on November 12.

Unless Congress intervenes, the new rules will cap hemp products at 0.4 mg of THC per container, replacing the practical framework created under the 2018 Farm Bill that allowed hemp products containing less than 0.3% Delta-9 THC by dry weight. The policy change could effectively eliminate roughly 95% of today’s hemp-derived THC products,

However, hemp seems to be reemerging as a policy issue in Washington, with potential reconsideration of the federal crackdown on hemp-derived THC products on the horizon.

What Happened

To that end, competing legislative proposals are gaining traction, and the White House is signaling a preference for a regulatory framework over an outright ban.

Senators Amy Klobuchar (D-MN) and Rand Paul (R-KY) introduced a bipartisan proposal, the Hemp Safety Enforcement Act, in April that would leave regulation of hemp products to states and Tribal governments, allowing existing state regulatory frameworks to continue instead of imposing federal prohibition.

Advocates emphasized that state regulation of hemp beverages and low-dose THC products proves consumer protection and legal commerce can successfully coexist.

Another proposal, the Lawful Hemp Protection Act, from Rep. Andy Barr (R-KY) seeks to set up a comprehensive federal framework. Instead of prohibiting the category, the bill aims to regulate intoxicating hemp products in a manner similar to other controlled consumer goods.

The Lawful Hemp Protection Act was not the only amendment to the FY2027 Agriculture Appropriations Act. Two additional amendments aimed at Section 781 of the legislation, from Rep. Russell Fry (R-SC) and Rep. James Comer (R-KY), seek to delay it and block funding for its enforcement, respectively, reported Cannabis Business Times.

Industry Warns Against Ban, Advocates Structured Hemp Oversight

In the meantime, the message to Congress from various organizations within the hemp industry is clear: regulate it, don’t prohibit it.

The U.S. Hemp Roundtable has been aggressive in lobbying to delay or replace the November restrictions. The organization praised the White House’s recent intervention. “We are excited to see the President take such a strong public stance in favor of replacing the hemp ban with a strong regulatory framework, or at a minimum, securing an extension of the hemp ban moratorium to give Congress more time to develop regulations,” Jonathan Miller, General Counsel of the U.S. Hemp Roundtable, said in a statement. “This is an important step in honoring Congress’ promise to help farmers and consumers.”

Hemp Industries Association (HIA) has been promoting the setting up of a national regulatory framework for hemp and hemp-derived cannabinoids that would include clear policies, rules based on science, and structured oversight.

The National Industrial Hemp Council of America (NIHC) has taken a similar stance. Its goal is to protect hemp farmers and processors via science-based regulations and legitimate hemp markets. The organization has been advocating for “Fit for Purpose” regulations that seek to make a distinction between traditional agricultural hemp and horticultural, cannabinoid uses. This would protect farmers and processors from the volatility of cannabinoid markets, according to NIHC.

The Alliance for Adult-Use and Consumer Hemp (ATACH) released a 2026 report on hemp-derived intoxicants recently outlining shifting state laws, CBD’s clarified but still incomplete legal status, rising regulation of THC beverages, and how industry systems are preparing for the transition. Michael Bronstein, president of ATACH, said in a statement that “the policy environment remains dynamic,” now that “Congress has closed the Farm Bill loophole.”