Congress’s New THC Restriction: Hemp Products Are About to Change

In late 2025, Congress passed a federal funding bill that completely reshaped the rules for legal hemp. The new law sets strict THC limits in finished products, impacting growers, manufacturers, and everyone operating in the hemp market. Understanding these changes is now essential. This article discusses the new law, explains why it matters, and outlines what to expect in the coming year.

How Hemp Became Legal: A Brief Overview

To understand the impact of the new law, it helps to look back at the 2018 Farm Bill. Before 2018, cannabis was mostly illegal, and any THC content was strictly controlled. The Farm Bill changed that by legalizing hemp plants containing no more than 0.3% Δ-9 THC by dry weight.

This shift resulted in a wave of hemp-derived products, including:

• Delta-8 and Delta-10 THC gummies

• THCA-rich flower

• Hemp-infused beverages

• Vape cartridges and concentrates

Even though some of these products could cause mild psychoactive effects, they were considered legal because they came from hemp rather than marijuana. This resulted in a growing market that, in no time, spread to gas stations, specialty shops, and online retailers, making hemp products widely accessible to consumers.

What Congress Changed: The 2025 THC Restrictions

The new law dramatically changes the legal landscape for hemp-derived products. There are three key changes you need to understand:

1. A Drastic THC Limit Per Product

Under the new law, a hemp product is considered legal only if the total THC per container does not exceed 0.4 milligrams. That’s a huge reduction as compared to the previous rule, which focused on the plant itself rather than the finished product. To put it in perspective: a single gummy often contains 5–10 mg of THC, which is dozens of times above the new limit. Even small bottles of full-spectrum CBD oil could exceed 0.4 mg when accounting for all cannabinoids, including THCA.

2. Ban on Synthetic or Converted Cannabinoids

The law removes all synthetic or chemically modified cannabinoids from the legal definition of hemp. As a result, compounds like Delta-8, Delta-10, and HHC, which were allowed under the 2018 Farm Bill, no longer qualify as hemp.

3. Focus Shift

According to the Law, the finished product must comply with the THC cap, even if the hemp plant is legally grown. As the law has shifted measurement from the plant itself to the end product, it has made enforcement requirements stricter for manufacturers, retailers, and testing labs.

Why Congress Made These Changes

Several factors influenced Congress’s decision:

• THC-infused hemp products were widely available in convenience stores and online, creating risks for underage consumers.

• Many intoxicating hemp products were sold outside state-licensed cannabis systems, leaving quality control and labeling inconsistent.

• Licensed cannabis operators and some state regulators argued that unregulated hemp products undermined state marijuana markets.

• Federal agencies and lawmakers wanted to ensure that hemp legalization did not inadvertently create a market for unregulated psychoactive products.

In short, the goal was to close the “hemp loophole” and restore the original intent of the 2018 Farm Bill. Meaning, allowing industrial hemp without broadly legalizing intoxicating cannabinoids.

What the New Rules Mean for Consumers

For anyone buying gummies, vapes, drinks, or THCA flower, the change is significant:

Many popular products may disappear from gas stations, vape shops, and online stores.

Consumers who rely on hemp-derived THC may need to switch to state-licensed dispensaries where adult-use cannabis is regulated.

Prices could rise as the supply shifts away from unregulated channels.

Essentially, products once considered legal under the 2018 Farm Bill could soon be federally illegal, even if they contain only small amounts of THC.

What the New Rules Mean for Businesses

• Retailers

Most current hemp-derived products sold in stores or online are likely non-compliant under the 0.4 mg rule. Retailers must audit their inventory and identify which products exceed the limit.

• Manufacturers

Companies producing Delta-8, Delta-10, HHC, or full-spectrum hemp products will need to reformulate, move products into state-licensed markets, or discontinue certain lines.

• Farmers

Hemp growers producing cannabinoid-rich crops may lose a significant portion of their market. Only fiber and grain hemp remain completely unaffected.

• Market Shifts

A significant drop in hemp products that have intoxicating effects is expected. Most offerings will likely focus on CBD-only products, and the one-year transition period may see more legal disputes and increased lobbying as companies adjust to the new rules.

Timeline and Enforcement

The law was signed in November 2025, but enforcement started in late 2026, which gives a one-year transition flexibility. During this time, the USDA and HHS will issue testing and compliance guidelines, businesses can update their products or push for revisions, and states may introduce their own enforcement rules, which could create uneven regulations across the country.

The 2025 hemp law brings major changes for both businesses and consumers. Industrial hemp is still legal, but most intoxicating hemp-derived products are now banned at the federal level. Companies that review their products, follow the new testing requirements, and update their formulations early will avoid compliance issues later. Therefore,  staying informed and taking action accordingly will make the transition much smoother.

FAQs:

Q1: Are Delta-8 and Delta-10 gummies banned?

Yes, under the new law, these synthetic cannabinoids no longer qualify as legal hemp.

Q2: How much THC is allowed per product?

The total THC per container cannot exceed 0.4 mg.

Q3: Will state-legal cannabis shops be affected?

No, state-licensed dispensaries operating under adult-use or medical marijuana laws can still sell THC products, but hemp products sold outside these channels must comply.