Resources
The Actual Bill - H.R. 5371
Read the bill H.R. 5371 Section 781 that covers the hemp ban. Additionally we have a reworded summary for clarity. To read the full text of H.R. 5371 / Section 781 (Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026) follow this link on Congress.gov.
Read the Original Wording
Section 781: Amendments to Hemp Production Law
Effective Date
This section takes effect 365 days after the enactment of this Act. At that time, Section 297A of the Agricultural Marketing Act of 1946 (7 U.S.C. 1639o) is amended as follows:
I. Structural Changes
Paragraphs (2) through (6) are redesignated as paragraphs (4) through (8), respectively.
II. Updated Definitions
Paragraph (1) is replaced with the following:
“(1) Hemp”
(A) In General: The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a total tetrahydrocannabinols concentration (including tetrahydrocannabinolic acid) of not more than 0.3 percent on a dry weight basis.
(B) Inclusion: Such term includes industrial hemp.
(C) Exclusions: Such term does not include:
(i) Any viable seeds from a Cannabis sativa L. plant that exceeds 0.3% total THC on a dry weight basis;
(ii) Any intermediate hemp-derived cannabinoid products containing:
(I) Cannabinoids not capable of being naturally produced by the plant;
(II) Cannabinoids that are naturally occurring but were synthesized or manufactured outside the plant; or
(III) More than a 0.3% combined total of total THC and any other cannabinoids with similar effects (as determined by the Secretary of Health and Human Services).
(iii) Any intermediate products marketed or sold as a final product or directly to a consumer for household use;
(iv) Any final hemp-derived cannabinoid products containing:
(I) Cannabinoids not capable of being naturally produced by the plant;
(II) Cannabinoids naturally occurring but synthesized or manufactured outside the plant; or
(III) Greater than 0.4 milligrams combined total per container of total THC and any other cannabinoids with similar effects.
“(2) Industrial Hemp” The term ‘industrial hemp’ means hemp grown for:
(A) Use of the stalk, fiber, or non-cannabinoid derivatives of the stalk;
(B) Use of the whole grain, oil, cake, nut, or hull of the seeds;
(C) Producing microgreens or edible hemp leaf products from an immature plant;
(D) Supporting research at an institution of higher education or independent research institute; or
(E) Viable seeds produced solely for the purposes listed above.
“(3) Hemp-Derived Cannabinoid Product”
(A) In General: Any intermediate or final product (other than industrial hemp) containing cannabinoids intended for human or animal use (inhalation, ingestion, or topical application).
(B) Intermediate Product: A product not yet in final form, or a form (like powder or oil) intended to be mixed or formulated into another substance before use.
(C) Container: The innermost packaging in direct contact with the product (e.g., jar, bottle, bag, box, packet, can, or cartridge).
(D) Shipping Exclusion: Does not include bulk shipping containers or outer wrappings not essential for final retail sale.
(E) Pharmaceutical Exclusion: Does not include drugs approved by the FDA.
III. FDA Publication Requirements
Within 90 days of enactment, the Food and Drug Administration (FDA) shall publish:
(A) A list of all cannabinoids known to be naturally produced by the plant;
(B) A list of all tetrahydrocannabinol-class cannabinoids naturally occurring in the plant;
(C) A list of all other cannabinoids with similar effects (or marketed as such) to THC; and
(D) Specific additional information regarding the definition of a “container.”
Reworded for Clarity
Based on Section 781 of the 2026 Appropriations Act
The Big Change: A New Definition of “Hemp”
The law has been tightened. To be legally sold as “hemp,” a product must now meet much stricter criteria than before. If it doesn’t meet these rules, it is legally considered a “controlled substance” (marijuana), not hemp.
1. The “Natural Only” Rule
Allowed: Only cannabinoids that are naturally grown inside the plant.
Banned: Anything synthetic. Even if a cannabinoid is “naturally occurring,” it is illegal under this law if it was manufactured in a lab instead of being extracted directly from the plant.
2. The Strict New Potency Limits
The law now sets a very low ceiling for intoxicating effects. To stay legal, a product must stay under these limits:
For the Plant: Must be under 0.3% THC (standard dry weight).
For Liquid/Powder “Ingredients”: Must be under 0.3% total THC.
For Finished Retail Products (The “0.4mg Rule”): A finished product (like a bag of gummies or a bottle of tincture) cannot have more than 0.4 milligrams of total THC per container.
Note: This total includes Delta-9 THC and any other “look-alike” cannabinoids that feel like THC.
What is “Industrial Hemp”?
The law creates a “safe lane” for farmers growing hemp for non-drug uses. These are exempt from the strict cannabinoid rules as long as they are used for:
Fiber: For clothing, rope, or building materials.
Grain/Food: Hemp seeds, hemp seed oil, or protein meal.
Research: Scientific study at universities.
Microgreens: Young hemp plants grown for food.
Key Definitions You Should Know
The “Similar Effects” Rule: The government is making a list of “THC-like” compounds (such as Delta-8). If a compound is on this list, it counts toward your 0.4mg limit just like regular THC.
The “Container” Rule: The 0.4mg limit applies to the entire package (the jar, bag, or bottle), not per serving.
Intermediate Products: These are “work-in-progress” items like bulk oils or powders. These cannot be sold directly to regular customers; they can only be sold to other businesses for further manufacturing.
Important Dates
February 2026: The FDA will release the official “Banned/Allowed” lists for cannabinoids.
November 12, 2026: These rules become fully enforceable. After this date, products that don’t meet these standards must be removed from the market.
Congressional Research Service briefs on changes to the federal definition of hemp and legal considerations. Here
USDA / AMS hemp page and related federal hemp production updates. Here
Economic impact and industry data
Advocacy and Stakeholder Resources
Economic Impact and Industry Data
News Coverage & Commentary
- PBS NewsHour – “How the bill that ended the shutdown could threaten the U.S. hemp industry’s future.”
- Texas Public Radio – Coverage on the shutdown bill, Section 781, and how hemp shops could disappear within a year.
- CNBC – “Congressional hemp restrictions threaten $28 billion industry, sending companies scrambling”
Forbes – “Congress Bans Delta-8 And THCA Under New Hemp Law”
NBC Non-Stop Local – “Hemp crackdown threatens health products, multi-billion dollar industry”