A sweeping new federal law banning most hemp-derived THC products has been signed by President Donald Trump, closing what lawmakers called a “loophole” in the 2018 Farm Bill and sparking backlash from hemp growers and retailers across the country.
The controversial provision was included in the government funding bill Congress passed this week to reopen the federal government after a short shutdown. It effectively re-criminalizes many hemp-derived consumables, including popular delta-8 THC and other cannabinoids, that have flourished in stores since federal hemp legalization seven years ago.
The new measure redefines legal hemp to include only products containing less than 0.3% total THC by dry weight and no more than 0.4 milligrams of THC per package. It also bans products containing cannabinoids that are “not capable of being naturally produced” by the plant or that were “manufactured or synthesized outside” it.
Supporters say the change is meant to protect consumers and bring clarity to a largely unregulated market. Critics argue it amounts to a nationwide prohibition on a thriving industry that has created hundreds of thousands of jobs.
The law includes a one-year grace period before enforcement begins.
The effort was spearheaded by Senate Minority Leader Mitch McConnell, who has argued that the provision corrects an “unintended consequence” of the 2018 Farm Bill that legalized hemp.
Sen. Rand Paul (R-Ky.), one of the Republicans to oppose the measure, warned that it “erases an entire industry” and punishes responsible operators for the actions of a few.
Louisiana lawmakers already tightened hemp regulations in 2024 under Act 752, which took effect January 1. That law limited THC content per serving to 5 milligrams, capped total package content at 40 milligrams, banned inhalable hemp vapes, and prohibited gas stations and alcohol-licensed venues from selling hemp consumables.
Even with those restrictions, Louisiana’s hemp market, which includes more than 2,000 licensed businesses statewide, continued to grow. Industry observers now warn the federal crackdown could nullify those state frameworks and devastate local producers, retailers, and workers.
Nationally, the hemp-derived products industry is valued at more than $20 billion, according to industry estimates. The U.S. Hemp Roundtable projects that up to 300,000 jobs could be lost as a result of the new ban.
In Louisiana, smaller retailers and processors say they are unsure how quickly enforcement will begin or whether existing CBD and non-intoxicating products will remain legal.
The hemp restrictions were part of the same spending bill that ended the latest government shutdown. With the law now in effect, federal agencies are expected to issue guidance to state agriculture and health departments in the coming months.
Industry groups have already signaled plans to challenge the law in court, arguing that Congress overstepped its authority and undermined legitimate businesses operating under prior federal guidelines.
For Louisiana producers, it’s a waiting game — one that could determine whether hemp remains a viable crop or becomes another casualty of Washington politics.
