Marijuana Moment: New Bipartisan Bill In Congress Would Keep Hemp THC Products Legal, With New Taxes And Regulations

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Bipartisan congressional lawmakers have filed a new bill that would allow continued sales of certain hemp-derived THC products, partially scaling back a broad ban that is scheduled to take effect later this year.

The new Lawful Hemp Protection Act, introduced by Reps. Andy Barr (R-KY) and Angie Craig (D-MN) on Wednesday, would again change the definition of what constitutes a federally legal product derived from the crop, add labeling requirements and institute new taxes on sales.

Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, Trump signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12—though he has since called on Congress to scale back the scope of the forthcoming restrictions.

The new 60-page bill, which a press release from Barr’s office says is supported by the White House, would keep many hemp products that are now on the market legal for people over the age of 21, again changing the definition of hemp to allow concentrations of up to 1 percent total THC on a dry-weight basis.

“Kentucky farmers helped build America’s hemp industry and they deserve certainty,” Barr said in a press release. “The Lawful Hemp Protection Act protects Kentucky agriculture, safeguards consumers and establishes a commonsense regulatory framework that allows this important industry to continue to grow while ensuring products are safe and kept out of the hands of children.”

“Kentucky has demonstrated that hemp can be successfully regulated while supporting farmers and protecting consumers,” he said. “This legislation builds on that success by creating a national framework that rewards responsible producers, eliminates bad actors and ensures consumers have confidence in the products they purchase.”

Craig, who serves as ranking member of the House Agriculture Committee, said her state of Minnesota “became the model for responsible hemp regulation when it established a regulatory framework that complied with federal law and enabled local farmers and businesses to thrive.”

“My commonsense legislation will give regulatory clarity to Minnesota farmers, brewers and small business owners and provide an alternative to short-sighted federal policies that threaten Minnesota jobs and consumer choice,” she said. “I am proud to have worked with Rep. Barr on a solution that protects our farmers and small businesses while also keeping our kids and communities safe.”

Barr and Craig are both running for U.S. Senate this November.

I’m fighting to overturn the hemp ban and stand up for our great Kentucky farmers.

Our Hemp Bill keeps hemp products out of the hands of kids by establishing a nationwide 21+ age requirement, puts consumer safety first with clear, commonsense federal standards, and gives…

— Congressman Andy Barr (@RepAndyBarr) July 22, 2026

Under the new bill, legal hemp would not include cannabinoids that are not capable of being naturally produced by a cannabis plant or that are “produced, manufactured, or converted using chemical synthesis, hydrogenation, acetylation, alkylation, or any other artificial process that adds to, removes from, or otherwise alters the molecular structure of a cannabinoid so that it contains one or more functional groups or substituents that are not present in any naturally occurring cannabinoid constituent” of cannabis.

The legislation specifically singles out hexahydrocannabinol (HHC), tetrahydrocannabinol acetate (THC–O–acetate) and tetrahydrocannabiphorol (THCP) as prohibited, and further says that any other “artificially modified analog or homologue of a naturally occurring cannabinoid” can be banned if identified by the secretary of agriculture in consultation with the secretary of health and human services. Also banned would be any cannabinoids that are produced, manufactured or converted using any solvent, extraction method or other means of production determined by the health and agriculture secretaries to “pose a risk to the public health.”

“Many Americans, including veterans and seniors, rely on consumer hemp products for wellness,” the legislation’s findings section says. “Ensuring that such products are consistently manufactured, accurately labeled, and domestically sourced is essential to maintaining public trust and protecting consumers. Clear provenance standards and the elimination of deceptive or look-alike products promote responsible industry growth, protect consumers, and reinforce confidence in lawful hemp commerce.”

Hemp has grown into a $30B industry, supporting local economies across our country. The federal hemp ban scheduled for this November would deal a fatal blow to responsible hemp businesses in MN and beyond.

That’s why @RepAndyBarr and I are introducing the Legal Hemp Protection…

— Angie Craig (@RepAngieCraig) July 22, 2026

“Protecting minors and preventing children’s access to hemp products is central to the public interest and to the long-term credibility of the hemp industry,” it says. “Strong age-control measures are necessary to prevent misuse and safeguard public health.”

With respect to potency, within 12 months of the proposal’s enactment, the secretary of health and human services would establish for hemp-derived cannabinoid products “a maximum allowable amount of total cannabinoid content for such product and each serving of such product” as well as “for each cannabinoid present in such a product, a maximum allowable amount of such cannabinoid for such product and each 1serving of such product.” Those limits would need to be updated at least once every three years or “as soon as scientific evidence warrants reconsideration.”

If the health secretary failed to set potency limits as directed by the bill, default levels of 5 milligrams per serving for oral products, 50 milligrams per serving of inhalable products  and 50 milligrams per serving for topical products would be set.

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Under the legislation, there would be a three-tier system for hemp-derived beverages, separated into manufacturers, wholesalers and retailers. No entity could hold a direct or indirect interest in more than one tier—a separation the legislation says will be “strictly maintained.”

For most consumable hemp products, excluding beverages, there would be a tax of 5 percent of the sale price. With respect to hemp drinks, there would be a federal tax of 5 cents per milligram of THC in each beverage. There would also be a tax on hemp product manufacturers in the amount of 5 percent of their annual sales revenue.

Revenue from the taxes would go into a new federal “Trust Fund for Oversight of Hemp-derived Cannabinoid Products” to be spent on administering regulations, carrying out consumer protection activities and supporting states that cooperate in federal hemp programs. One percent of the revenue from hemp beverages would go to the Highway Trust Fund to support state-level enforcement, training and testing technologies related to standards on zero-tolerance for impaired driving.

The legislation also sets out labeling requirements for hemp-derived consumer products, including displaying per-serving and per-package THC content, as well as a statement specifying that they are only for people over the age of 21. Packaging and labeling would also be required to display “adequate directions for use,” warn against consumption by children and during pregnancy or driving while impaired. They would also need to include a disclaimer of risks posed by specific cannabinoids contained within—including the risk of failing a drug test—and display a QR code that leads to a web page with testing results in the form of a certificate of analysis. Labels could not make a claim “regarding the product’s effect (or lack thereof) on the structure or any function of the body of humans or other animals” or contain features that could appeal to children.

The labeling and maximum cannabinoid content provisions would only apply to products “introduced or delivered for introduction into interstate commerce” after 180 days of the legislation’s enactment.

Hemp cannabinoid products introduced into interstate commerce would need to be derived exclusively from hemp cultivated, processed, finished, packaged and labeled within the U.S., and the health secretary would also establish uniform manufacturing and testing requirements for products.

Hemp product manufacturers and wholesalers would be required to obtain federal permits, and beverage manufacturers and wholesalers would be required to track and file reports on their inventories.

One section of the measure would require the health secretary to publish a list of all cannabinoids known to be capable of being naturally produced by a Cannabis sativa L. plant, as reflected in peer reviewed literature, as well as a list of all tetrahydrocannabinol class cannabinoids known to be naturally occurring in the plant, within 90 days.

The legislation also contains a provision codifying coverage of hemp products covered under Medicare in line with an initiative launched by the Trump administration earlier this year.

States would be at risk of losing out on certain federal funds if they do not address hemp-impaired driving using the “same field sobriety evaluation standards and protocols that law enforcement officers apply to determine impairment caused by lawfully prescribed pharmaceutical substances, including opioids, benzodiazepines, and other controlled medications” or subject hemp-impaired drivers to the “same penalties, fines, license suspensions, and other sanctions as apply to driving under the influence of alcohol or other impairing substances,” the bill says.

The proposal makes clear that states, territories and Indian tribes could enact hemp product laws that are more stringent that the federal requirements under the bill, but it also says that they cannot interfere with the “passage and delivery of a hemp-derived consumable product through the borders” of their jurisdictions.

Barr previously filed versions of the hemp regulation legislation as amendments to large-scale bills, but those were blocked from consideration on the House floor by the Rules Committee.

The GOP congressman spoke at a meeting with hemp industry operators earlier this year and previewed the legislation—saying it faces opposition from a coalition of strange bedfellows including sectors of the alcohol industry, marijuana businesses and cannabis legalization opponents.

Trump and White House officials have in recent weeks repeatedly called on Congress to delay, alter or reverse the ban.

In a letter to House Speaker Mike Johnson (R-LA) last month, for example, White House Office of Management and Budget (OMB) Director Russell Vought said the Trump administration wants lawmakers to “ensure the fair treatment of hemp products”—specifically citing Barr’s earlier amendment to keep many hemp products legal while adding regulations and taxes.

The administration “welcomes the opportunity to work with the Congress to, at a minimum, update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products,” OMB separately said last month, “while preserving the Congress’s intent to restrict the sale of products that pose serious health risks.”

Earlier this year, White House officials provided Barr’s office with feedback on legislation to create a regulatory framework for hemp, writing in a letter that they “appreciate your work to advance the policy of” an executive order Trump signed in December that included provisions seeking to protect Americans’ access to CBD products.

“We are transmitting for your consideration draft legislative text and comments to address the statutory definition of final hemp-derived cannabinoid products in order to allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving the Congress’s intent to restrict the sale of products that pose serious health risks,” Vince Haley, director of the White House Domestic Policy Council and James Braid, assistant to the president for legislative affairs, wrote to the congressman, according to a social media post containing a screenshot of the letter. “We are available for discussion and further technical assistance.”

In April, the president himself urged congressional lawmakers to again redefine hemp to avoid recriminalization of full-spectrum CBD products.

“I am calling on Congress to update the Law to ensure that Americans can continue to access the full-spectrum CBD products they have come to rely on, and that help them, while preserving Congress’s intent to restrict the sale of products that pose Health risks,” Trump said in a Truth Social post on the same day his administration announced it is moving forward with rescheduling marijuana.

“We must get this done RIGHT and FAST, especially for those who saw that CBD helps them,” he said. “Plus, I am told it will also help our GREAT FARMERS, who we love, and will always be there for.”

Industry advocates say that the law as enacted last year not only threatens to prohibit intoxicating and synthetic cannabinoid products but also stands to remove popular full-spectrum CBD products that many Americans use therapeutically from the market.

“ONE in FIVE adults used it in the past year, and many say it improved their chronic pain enormously,” the president said in his social media post, adding that hemp-derived CBD “has made a HUGE difference for so many people.”

He also referenced a new initiative the administration launched in April to cover up to $500 worth of hemp-derived products each year for eligible Medicare patients. The program being implemented by the Centers for Medicare & Medicaid Services (CMS) focuses largely on CBD but also allows products to have up to 3 milligrams of total THC per serving. A federal judge granted the government’s motion to dismiss marijuana legalization opponents’ lawsuit challenging the initiative, but that is being appealed.

“In December, I signed a very important Executive Order calling for Research and Innovation for Hemp-derived CBD,” Trump said. “Our wonderful Dr. Mehmet Oz moved fast to follow the directive in the Executive Order, and launched a model for some Seniors earlier this month. But more must be done!”

“Please get it done, and SOON,” the president said in reference to a congressional fix for the broad recriminalization set to take effect in November. “Thank you for your attention to this matter!”

It’s not clear how far Trump wants to scale back the scope of the scheduled federal restrictions on hemp products and what kinds of revised THC rules and limitations he would prefer to sign into law.

Sen. Tim Sheehy (R-MT) recently cited hemp legislation as an area where Republicans and Democrats can work together in an otherwise “hyperpartisan time.”

Sen. Ted Cruz (R-TX), however, predicted that it will be an “uphill path” to avert the scheduled federal recriminalization of hemp THC products this year.

Leaders of the advocacy organization Marijuana Policy Project similarly said recently that they think it will be difficult to avert the ban on hemp THC products before November, though they left open the possibility that there could be a carve-out for beverages or some reforms to THC limits.

Meanwhile, the former head of the Department of Homeland Security under the first Trump administration recently sent a letter warning congressional against keeping hemp THC products legal, claiming that reversing the ban that is set to take effect later this year would “undermine public health” and “embolden foreign criminal actors.”

The House of Representatives recently passed a Farm Bill with provisions aimed at aiding industrial hemp producers—but without any language to delay or alter the federal recriminalization of hemp THC products that’s scheduled to take effect in November.

The Wine & Spirits Wholesalers of America (WSWA) said the House’s failure to include provisions to delay or alter the ban on hemp THC products was a “missed opportunity.”

The National Restaurant Association recently sent a letter urging congressional leaders to delay the federal recriminalization of hemp THC beverages and replace it with a regulatory framework that “ensures consumer safety while meeting growing market demand” for the products as an alternative to alcohol.

Major retailer Target, meanwhile, recently moved to expand its sales of hemp THC drinks into more states.

Meanwhile, the White House Office of Management and Budget recently held a series of meetings about a Food and Drug Administration (FDA) CBD products enforcement policy.

FDA also issued guidance making clear that it does not intend to interfere with implementation of the Medicare hemp-derived products coverage plan.

CMS separately finalized a rule that will allow coverage of some hemp products as specialized, non-primarily health-related benefits through Medicare Advantage plans.

A U.S. Department of Agriculture report published in April shows that farmers in the U.S. grew three-quarters of a billion dollars worth of hemp crops in 2025—a 64 percent increase from the prior year.

Read the full text of the new hemp bill below:

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