Current Situation

Congress has passed the FY 2026 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, which includes major updates to federal hemp policy. The new rules take effect in one year.

The 2018 Farm Bill created a definition of hemp, excluding the plant from the definition of marijuana in the Controlled Substances Act and accordingly paving the way for the current market for intoxicating THC products derived from hemp. The new legislation revises the 2018 Farm Bill’s definition of hemp.

Under the new legislation, the amount of THC in finished products derived from hemp is capped at 0.4 mg, substantially lower than most products currently on the market. In addition, the revised definition would prohibit synthetic cannabinoids derived from the hemp plant.

The one-year implementation delay allows the USDA, the FDA, and state regulators to update rules and issue guidance before enforcement begins in late 2026. We expect substantial activity in Congress over the next year to craft a federal regulatory framework for intoxicating hemp products as an alternative to the current bill’s effective prohibition on intoxicating hemp products.

Implications for Brewers

The new definitions clearly separate industrial hemp used in human food, animal feed, and fiber from intoxicating hemp-derived products.

For brewers, unless Congress further alters the law in the next year, this means that intoxicating hemp products (those with more than 0.4 mg of THC) will become illegal in one year. Hemp grain, seed, and oil can still be used as ingredients under federal law.

The transition period gives brewers and suppliers time to adjust their business policies before the new, more restrictive standards take effect. It also will likely offer an opportunity for industry engagement with federal lawmakers to develop an alternative to prohibition via a federal regulatory framework for this new category of product.

Stay Engaged

Federal policy changes like these directly shape the operating environment for small and independent brewers. To help ensure the brewing community’s interests are represented, consider participating in the 2026 Hill Climb in Washington, D.C., this February 24 & 25. The event provides a critical opportunity to meet with lawmakers and discuss how evolving federal regulations, including hemp policy and related ingredient standards, affect your business and the broader craft brewing industry.