With the federal ban on hemp-derived products looming at the end of 2026, the U.S. hemp industry, valued at, at least $28 billion, is seeking a way out. 

Hemp-derived products, so long as they contained no more than 0.3% THC, were legalized in the 2018 Farm Bill. The bill effectively greenlighted an entirely new era for the U.S. hemp industry; infused seltzers and candies became particularly lucrative. States were able to capitalize on an existing industry in ways they weren’t able to before. Large chains like Total Wine, Target and Sprouts have all introduced hemp-derived THC drinks into their stores. But while the hemp industry boomed, a murky tension between state governments, regulatory practices and the industry itself ensued. 

The new ban on hemp and hemp-derived products will introduce new THC limitations. Products will continue to be measured on a dry-weight basis to ensure there is no more than 0.4 milligram of THC per container. It is estimated that under the new law, 95% of what makes the hemp market tick will be illegal. 

States like Minnesota and Kentucky have significantly expansive hemp industries. Minnesota’s industry was able to expand when a 2022 law codified the ability to sell low-dose THC edibles and infused drinks across different retail settings. USDA data from 2024 revealed that Kentucky produced over 4.3 million pounds of hemp that year. Lawmakers from both states have proposed different bills that target the ban that will take effect this November. 

The Hemp Safety Enforcement Act 

A bipartisan bill was introduced by Sens. Amy Klobuchar, D-Minn., and Rand Paul, R-Ky., that would allow state governments and Tribal governments to regulate hemp and hemp-derived products as a way to mitigate federal intervention. 

“I’ve heard loud and clear from brewers, farmers and small businesses in Minnesota — a federal ban on hemp products will be devastating. Minnesota is a national leader in hemp products, and Congress should recognize that leadership and commitment to consumer safety. I appreciate Sen. Paul for his continued partnership on this issue, and I will continue to push in the Senate for a solution that protects Minnesota’s small businesses and farmers,” said Klobuchar in a press release. 

The bill is co-sponsored by Sen. Joni Ernst, R-Iowa. 

The Lawful Hemp Protection Act 

Proposed by Rep. Andy Barr, R-Ky., this measure hopes to introduce a 1% THC standard to the existing dry-weight protocols. This would not include cannabinoids that occur within the products. A 5% federal tax would also be imposed on hemp-derived products. The proposal also approaches concerns about unregulated products and their potential harms to consumers, particularly children.

 “Many Americans, including veterans and seniors, rely on consumer hemp products for wellness. 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,” the proposal stated. 

Without external action from the government, hemp and hemp-derived products will be banned on Nov. 12.