US hemp-THC industry fights federal ban delayed to December 11, warns of $28.3B loss

Congress delayed the effective date of a federal hemp-THC ban to Dec. 11, 2026, giving lawmakers more time to weigh regulating intoxicating hemp products rather than prohibiting them, after the measure was attached to a government-funding bill signed by President Donald Trump. The ban, which limits THC to 0.4 milligrams per container, threatens to cut retail revenues by $28.3 billion, displace 225,000 jobs and reduce state sales tax potential by $2.1 billion, according to a Whitney Economics report cited by the Associated Press. The market grew from a loophole in the 2018 farm bill, championed by Sen. Mitch McConnell, that defined hemp as containing less than 0.3% delta-9 THC by weight. Operators such as Kentucky's Cornbread Hemp, with 105 employees and $65 million in expected 2026 revenue, say the 0.4-milligram cap would end their businesses. Industry groups are pushing age-21 restrictions and per-package THC caps. Regulated marijuana operators and anti-cannabis advocates support the ban.