Trump Signs Bill Ending Shutdown, Reinstating Hemp Prohibition in 2024

In a significant policy shift, President Donald Trump has signed a bill ending the longest government shutdown in U.S. history while simultaneously setting the stage for the recriminalization of most hemp-derived products. The bill, which passed the Senate on Monday and the House on Wednesday, includes a provision that dramatically reverses recent drug policy by redefining legal hemp products. This marks a pivotal moment for the hemp industry, which now faces a countdown of 365 days before many of its products are reclassified as illegal under federal law

The new legislation introduces a stringent definition of legal hemp, scheduled to take effect one year from its enactment. According to the revised law, any hemp product containing more than 0.4 milligrams of total THC per container will be classified as a Schedule I substance under the Controlled Substances Act. This comprehensive definition includes all THC isomers, such as THCA, delta-8, and delta-10, effectively banning a wide range of products including tinctures, gummies, seltzers, and vapes that have proliferated since the 2018 Farm Bill

The legislative process leading to this outcome was contentious. Senator Mitch McConnell, a key figure in the legalization of hemp in 2018, played a significant role in crafting the new restrictions, arguing that the original intent of the Farm Bill was not to create a market for psychoactive hemp products. In contrast, Senator Rand Paul staunchly opposed the new limits, warning that they could 'destroy an industry.' Despite his efforts to amend the bill, including garnering support from 22 Democrats and Republican Senator Ted Cruz, the amendment was unsuccessful as the need to reopen the government took precedence

The implications of this legislative change extend beyond the immediate impact on the hemp industry. States like Alabama and Arkansas, which automatically adopt new federal cannabis definitions, could see widespread business closures as a result. This regulatory shift threatens to upend a multibillion-dollar industry, with businesses and consumers facing uncertainty about the future availability of hemp products

Industry reactions have been swift and critical. The U.S. Hemp Roundtable has voiced strong disapproval, stating that the bill could eliminate over 95% of hemp extract products, devastating small farms and businesses. Jim Higdon, cofounder of Cornbread Hemp, expressed optimism that Congress could still develop a regulatory alternative within the one-year window. Meanwhile, companies like Azuca and FundCanna emphasize the need for regulation rather than prohibition, advocating for responsible oversight to sustain the market

Looking ahead, the hemp industry is mobilizing to fight the impending prohibition. Efforts are underway to introduce new legislation that would establish clear manufacturing standards and labeling requirements, while also protecting minors from exposure to synthetic THC. Lawmakers such as Rep. Morgan Griffith, along with Senators Ron Wyden and Jeff Merkley, are expected to spearhead these initiatives, aiming to replace the prohibition clause with practical regulatory measures

The next year will be crucial for the hemp sector as it navigates these regulatory changes. The industry must rally support from lawmakers and the public to prevent the rollback of progress made since the 2018 Farm Bill. As stakeholders prepare for legislative battles, the outcome will determine the future landscape of hemp production and consumption in the United States