The US Senate has finally voted to end the longest federal shutdown in history. Sealing the deal is a legislative package that includes restoring funding for federal agencies through January 30, 2026 and providing retroactive pay for federal employees who were either furloughed or required to work without pay (such as air traffic controllers).
However, there’s a proverbial fly in the ointment in the form of a provision that is sure to have damaging financial repercussions to the hemp community: a nationwide ban on hemp products containing more than 0.4 milligrams of THC.
The language in the FY26 Ag-FDA Appropriations bill threatens to upend the hemp industry and wipe out billions of dollars in economic activity. While some “Big Alcohol” groups have come out against intoxicating hemp, over 50% of beer wholesalers nationwide are already distributing hemp-derived THC beverages—and they don’t want them to go away. Reportedly, Kentucky Senator Rand Paul was among the lawmakers against the legislation as it will deal a blow to a growing industry in his state.
The 2018 Farm Bill legalized the production of hemp, a cousin to cannabis, but it did so within parameters. According to the law, legal hemp was restricted to 0.3% THC by dry weight, which measures the percentage of THC in the plant itself after moisture is removed. For example, a hemp flower with 0.3% THC has 0.3% of its dry mass as THC.
The proposed ban, by contrast, limits total THC per product to 0.4 mg, meaning the total amount in a serving or container. For example, a drink with 10 mg of hemp extract could be legal under the current Farm Bill if the extract is under 0.3% THC, but illegal under the new rule if the total THC exceeds 0.4 mg in the drink.
To hemp beverage purveyors, the ban is plunging their industry into a world of pain.
“THC beverages were never here to replace alcohol, said Justin Ashby, chief administrative officer of Southern Crown Partners, a Charleston, South Carolina-based beverage distributor. “They’re an option for responsible adults who want more choice. If intoxicating hemp is banned, consumers won’t see these drinks at places like Target, Total Wine or Circle K anymore. The core consumer of these beverages are responsible adults and these beverages thrive in the same spaces where people already enjoy other adult beverages.”
Diana Eberlein, chair of Coalition for Adult Beverage Alternatives, noted that bans won’t solve the challenges lawmakers are trying to solve and that especially applies in this instance. However, she isn’t giving up.
“This “one size fits all approach” is only going to push the bad actors further underground, supporting an illicit market full of untested intoxicating products that threaten consumer safety,” she said. “Hemp is one of the few causes right now that has bipartisan support, not just on The Hill, but from the wholesale, retail, and traditional industries as well. It’s unfortunate that we’re in this position, but this industry is resilient and knows how to pivot—and we will.”
Regulating hemp products in a way that’s consistent with alcohol may be a way of solving this issue, according to Ashby. Not only would it be an effective way of protecting consumers but it would provide law enforcement with clear guidelines, such as requiring state and federal licenses for suppliers, wholesales and retailers.
“We just want a fair, regulated market that allows responsible companies to keep offering safe, consistent products to consumers who clearly want them,” added Ashby.
Having passed the Senate, the government funding bill is currently in the House of Representatives where it is expected to pass–albeit on a razor thin margin.
Source: https://www.forbes.com/sites/irisdorbian/2025/11/12/congress-moves-to-end-shutdown-while-enacting-hemp-ban/
