New federal restrictions on hemp and hemp-derived products: Top points

Congress has enacted sweeping changes to the hemp framework established by the 2018 Farm Bill that will materially affect hemp and hemp‑derived cannabinoid products.

Amendments to the 2018 Farm Bill, which removed hemp (Cannabis sativa L.) from the definition of marijuana under the Controlled Substances Act, were included in the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026. The amendments eliminated the “hemp loophole” that only restricted Delta-9 tetrahydrocannabinols (THC) levels in hemp, leading to a proliferation of “hemp-derived” intoxicating products, such as those with Delta-8 THC and tetrahydrocannabinolic acid (THCA).

Key takeaways

This new legislation will have the following impacts on hemp market by:

• Redefining hemp by restricting total THC (including THCA) to levels at or below 0.3 percent on a dry-weight basis
  
  
• Clarifying that synthetic cannabinoids, such as Delta-8 and THCA, are excluded from the definition of hemp, even when derived from legal hemp
  
  
• Establishing a limit of 0.4 milligrams of total THC (including THCA) per container in a final hemp-derived product

Key provisions

The hemp amendment provides new definitions for certain terms, creates new restrictions on the sale of hemp, and requires the Food and Drug Administration (FDA) to promulgate new guidance. These changes are identified below.

• New definitions:

• “Hemp” is redefined as Cannabis sativa L. plants (including parts and derivatives) with a total concentration of THC (including THCA) of not more than 0.3 percent on a dry-weight basis. The 2018 Farm bill only imposed limits on Delta-9 THC concentration
  
  

• “Industrial hemp” is defined as hemp grown for non-cannabinoid uses (e.g., fiber, seed oil, microgreens) and is included in the hemp definition
  
  

• “Hemp-derived cannabinoid product” means any intermediate (i.e., powder, liquid, tablet, oil, or other form intended or marketed to be mixed, dissolved, formulated, or otherwise prepared with another substance prior to consumption) or final product derived from hemp that contains cannabinoids in any form, and is intended for human or animal use (e.g., inhalation, ingestion, or topical)
  
  

• “Container” means the innermost wrapping, packaging, or vessel in direct contact with a final hemp-derived cannabinoid product in which the final hemp-derived cannabinoid product is enclosed for retail sale to consumers, such as a jar, bottle, bag, box, packet, can, carton, or cartridge

• Restrictions:

The following fall outside the definition of “hemp” and therefore could be treated as non-hemp cannabis products under federal law, with potential Controlled Substances Act exposure:

• Viable seeds with a total THC concentration (including THCA) of more than 0.3 percent on a dry-weight basis
  
  

• Hemp-derived products containing synthetic cannabinoids – i.e., those cannabinoids that are “synthesized or manufactured” outside the plant (e.g., Delta-8 THC from naturally occurring CBD)
  
  

• Hemp-derived products that exceed potency limits:

• Intermediate hemp-derived products with more than 0.3 combined total THC (including THCA) and any other cannabinoid that has similar effect or are marketed to have similar effects
  
  

• Final hemp-derived products with more than 0.4 milligrams per container combined total THC (including THCA) and any other cannabinoid that has similar effect or are marketed to have similar effects. A “container” is the innermost wrapping, packaging, or vessel enclosing the final product for retail sale to consumers

• Intermediate hemp-derived products sold directly to consumers

• FDA, in consultation with other relevant federal agencies, must publish the following within 90 days:

• List of all known cannabinoids naturally produced by Cannabis sativa L., as reflected in peer-reviewed literature
  
  

• List of all known naturally occurring THC cannabinoids
  
  

• List of all other known cannabinoids with similar effect to, or marketed to have similar effects to, THC
  
  

• Additional information and specificity about the term “container”

• Effective date:

These provisions take effect on November 12, 2026.

Potential preemption implications

Although there is no broad, express preemption of state law provisions in the hemp section of the bill, the bill could nevertheless implicate preemption and conflict-of-law issues.

For example, if a state law permits the sale of hemp-derived THC products above the new federal threshold, businesses cannot comply with both laws simultaneously. This could implicate conflict preemption, meaning federal law would override state permissions for these products.

Accordingly, states that legalized hemp-derived THC (e.g., Delta-8 markets) could see those frameworks effectively nullified for interstate commerce and likely intrastate sales, because federal enforcement can target manufacturers, distributors, and retailers. Lawsuits challenging whether Congress intended to preempt state hemp frameworks or whether states can maintain intrastate-only markets are likely.

Industry considerations

With an effective date of November 12, 2026, the hemp industry is encouraged to analyze the impact of the new law on business and begin preparing for compliance. Initial steps may include:

• Reviewing product formulations for compliance with new THC/THCA limits

• Auditing supply chains to ensure seeds and ingredients meet federal standards

• Monitoring HHS/FDA for updates and clarifications

• Assessing the impact on state laws and preparing for possible enforcement or litigation

DLA Piper is following these developments and is ready to offer strategic, company-specific advice on navigating the changing landscape. For questions and compliance support, please contact the authors or your DLA Piper attorney.