Senate Continuing Resolution Would Delay Upcoming Federal Hemp Restrictions

Industry Faces Continued Uncertainty Ahead of the November 2026 Deadline

The U.S. Senate has introduced a funding measure that would temporarily delay implementation of sweeping federal hemp restrictions scheduled to take effect on November 12, 2026. While the proposal provides a potential short-term reprieve for hemp-derived cannabinoid manufacturers, retailers, distributors, and investors, it does not eliminate the underlying statutory changes enacted in late 2025. Unless Congress ultimately modifies or repeals those provisions, significant portions of the hemp-derived cannabinoid marketplace could face federal prohibition later this year.

Background: The 2025 Federal Redefinition of Hemp

The current controversy stems from legislation enacted as part of the federal appropriations process in November 2025. That legislation amended the federal definition of hemp established by the Agriculture Improvement Act of 2018 (the “2018 Farm Bill”), Pub. L. No. 115-334, codified principally at 7 U.S.C. § 1639o et seq.

Under the 2018 Farm Bill, hemp is generally defined as cannabis and cannabis derivatives containing no more than 0.3% delta-9 tetrahydrocannabinol (THC) on a dry-weight basis. The 2018 Farm Bill’s specific limitation to delta-9 THC alone enabled the rapid growth of the non-delta-9 hemp-derived cannabinoid industry and the proliferation of products containing CBD and other hemp-derived cannabinoids, such as tetrahydrocannabinolic acid (THCA), delta-8 THC, delta-10 THC, or combinations of these compounds.

The 2025 legislation significantly narrowed that framework by shifting from a delta-9 THC measurement standard to a broader “total THC” standard and imposing additional restrictions on finished hemp-derived cannabinoid products. The law becomes effective on November 12, 2026, unless Congress intervenes.

What Would Change on November 12, 2026?

The amendments enacted in 2025 are widely viewed as a substantial tightening of federal hemp law. Among the most significant changes:

• Hemp would be evaluated using a broader total THC methodology rather than a delta-9 THC-only standard.
• Final hemp-derived cannabinoid products would be limited to 0.4 mg total THC per container.
• Certain synthetic and intoxicating cannabinoids, i.e., cannabinoids that are not extracted directly from hemp in commercially significant quantities but instead are created through chemical conversion or synthetic manufacturing processes, would be prohibited or substantially restricted.

The combination of the new “total THC” methodology together with the 0.4 mg total THC per container limit (rather than per serving) would render the vast majority of currently marketed hemp-derived cannabinoid products illegal under federal law. Estimates cited by hemp trade organizations suggest that more than 90% of existing products may not satisfy the revised standards, jeopardizing the hemp-derived cannabinoid industry in America that is currently valued at approximately $28.4 billion annually and which supports more than 300,000 jobs nationwide.

Senate Proposal Would Push Deadline to December

On August 3, 2026, leaders of the Senate Appropriations Committee released a continuing resolution and funding package that would postpone implementation of the 2025 hemp restrictions until December 11, 2026, rather than November 12, 2026. The stated objective is to provide Congress additional time to consider a longer-term legislative solution.

Importantly, the proposal does not repeal the underlying statutory amendments. Instead, it would provide a brief extension while lawmakers continue debating the future federal framework for hemp-derived cannabinoid products. Further, certain restrictions on synthetic cannabinoids may still take effect under the existing schedule.

Legislative Efforts to Modify the Hemp Restrictions

Several competing proposals have emerged in Congress since enactment of the 2025 law.

Some lawmakers have introduced measures that would delay implementation until 2028, while others have advocated outright repeal of the 2025 restrictions. Additional proposals would establish a federal regulatory framework specifically addressing hemp-derived cannabinoid products rather than broadly prohibiting them through statutory definitions. As of late July 2026, none of these proposals had advanced beyond committee consideration.

The Executive Branch has also expressed concern regarding the practical impact of the 2025 amendments, and federal officials have urged Congress to revise aspects of the legislation or extend implementation while a more comprehensive regulatory approach is evaluated.

Practical Implications for Hemp Businesses

The continuing resolution should not be viewed as a resolution of the industry’s regulatory challenges. Even if Congress adopts the Senate proposal, businesses would merely receive additional time before the revised federal standards take effect.

Because the proposal remains part of the appropriations process, businesses should closely monitor subsequent Senate action, House negotiations, and any final enacted appropriations legislation. Manufacturers, brand owners, distributors, and retailers should also continue evaluating:

1. Product formulations and total THC content.
2. Exposure to federal “total THC” requirements.
3. Dependence on cannabinoids that may be characterized as synthetic or intoxicating.
4. Inventory planning and supply chain commitments extending beyond November 2026.
5. State-law compliance requirements that may continue to apply regardless of federal developments.

The Senate Appropriations Committee’s proposal must now be considered and passed by the Senate, approved by the House of Representatives, and signed by the President before it becomes law. If the House and Senate pass different versions, the hemp provisions will be subject to negotiation as part of the broader appropriations process. During those negotiations, Congress could retain the one-month delay, extend it further, modify the underlying hemp restrictions, or remove the delay entirely. Until a final appropriations measure is enacted, the current statutory effective date remains November 12, 2026, meaning hemp businesses should continue planning for compliance while closely monitoring developments.

Businesses operating in New Jersey should also continue monitoring state regulatory developments, as federal action does not automatically preempt all state restrictions governing hemp-derived cannabinoid products.

How Our Firm Can Help

The federal hemp industry remains at a critical inflection point. The Senate’s proposed continuing resolution would temporarily delay implementation of the 2025 federal hemp restrictions, but it would not eliminate them. Unless Congress ultimately modifies the law, businesses could still face significant federal compliance obligations beginning later this year. Accordingly, cannabinoid manufacturers, distributors, retailers, investors, and lenders should continue preparing for the possibility that the revised federal hemp definition and product restrictions will become effective in late 2026.

Daniel T. McKillop is a Partner and Chair of the Cannabis & Hemp Law practice group at Scarinci Hollenbeck, resident in the firm’s Little Falls, New Jersey office. He counsels manufacturers, brand owners, distributors, retailers, investors, and lenders on federal and New Jersey hemp and cannabis regulatory compliance, product classification, licensing, and enforcement matters.

If you have questions about how the proposed extension or the November 12, 2026 effective date may affect your business, please contact Mr. McKillop at 201-896-7115 or dmckillop@sh-law.com, or reach the firm’s Cannabis and Hemp Regulatory Group.