Supporters of the hemp industry warn that a proposed legislative change could severely impact the thriving sector that emerged following hemp’s federal legalization.
Buried in a recent budget bill from Congress is a provision that might render THC-infused drinks, such as hemp-based seltzers, illegal on a federal level within the next year.
This clause, included in the Continuing Appropriations and Extensions Act, 2026 (H.R. 5371), aims to redefine hemp and set a strict limit on THC content at 0.4 milligrams per container. Such a cap would render most existing products, including popular THC seltzers, non-compliant.
These THC seltzers have gained traction as a popular alternative to alcohol since the 2018 Farm Bill allowed the sale of hemp-derived products. Brands like Flavor Pixels often feature 5 to 10 milligrams of THC per can, far exceeding the proposed limit.
Industry representatives argue that this legislative change could dismantle the burgeoning hemp market established post-legalization.
“We are profoundly disappointed by Congress’ approval of H.R. 5371, which includes restrictive hemp measures poised to dismantle the nation’s $28 billion hemp economy,” the Texas Hemp Business Council expressed in a statement on Monday. “Farmers stand to lose vital markets, numerous small businesses may shutter, and over 300,000 jobs are at risk.”
The hemp restriction was inserted late in negotiations and drew bipartisan opposition. Sen. Rand Paul, R-Ky., led an effort Monday to remove the language, calling the measure “a backdoor federal ban on hemp.” He was joined by Minnesota Democrats Amy Klobuchar and Tina Smith, but the motion failed in a 76-24 vote.
If passed by the House in its current form, the new restrictions would take effect one year after being signed into law.
The push to close what some lawmakers call a “THC loophole” follows concerns from 38 state attorneys general, who urged Congress to crack down on unregulated hemp-derived THC products. In a letter earlier this year, the attorneys general described “Frankenstein THC products that get adults high and harm and even kill children.”
While their warnings largely focused on illicit THC gummies marketed to minors, hemp advocates argue the new federal definition goes too far — banning everything from mild THC seltzers to non-intoxicating CBD products that contain trace amounts of THC.
Under the 2018 Farm Bill, hemp was defined as cannabis with less than 0.3% delta-9 THC, the compound responsible for marijuana’s high. The new provision broadens the restriction to include all forms of THC, such as delta-8 and THCA, which are common in hemp-based products.
The bill now heads to the House of Representatives, which could vote as early as Wednesday. It needs 218 votes to pass. Despite the Republican majority, several GOP lawmakers — including Kentucky’s James Comer, Thomas Massie and Andy Barr — have spoken out against the ban, citing its economic impact on farmers and small businesses.
The amendment, known as a rider, is being carried on the back of a budget bill designed to end the longest government shutdown in U.S. history. Despite opposition from some congressmembers, the bill as a whole is expected to pass in the GOP-controlled House and arrive on the president’s desk sometime before the end of the week.
Lou Raguse contributed to this report.
