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Congress

Bipartisan Bill Would Create Federal Regulatory Framework for Hemp Products

The Lawful Hemp Protection Act, introduced by Reps. Craig (D-Minn.) and Barr (R-Ky.), comes less than six months before hemp-derived intoxicants face a federal ban.

⚡ The Bottom Line

The introduction of the Lawful Hemp Protection Act comes less than six months before a scheduled November 2026 ban on hemp-derived intoxicants takes effect. The bill represents an attempt to create regulatory clarity for an industry that has expanded significantly since the 2018 farm bill removed hemp from the controlled substances list. Barr's office indicated the White House supports the legi...

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Reps. Angie Craig (D-Minn.) and Andy Barr (R-Ky.) on Wednesday introduced the Lawful Hemp Protection Act, a bill designed to establish the first comprehensive federal regulatory framework for hemp and hemp-derived THC products.

The legislation would separate industrial hemp from consumable hemp products, requiring finished products to undergo testing to ensure compliance with synthetic cannabinoid restrictions. Compounds found naturally in the plant would be permitted, while synthesized cannabinoids such as delta-8 THC would be banned. All hemp products would need to be cultivated, processed, finished and packaged within the United States to gain Food and Drug Administration approval.

The bill sets a 21-and-over age requirement for purchasing hemp products, with civil penalties of up to $1,000 per violation for those under 21 who consume them. Packaging would require warning labels addressing pregnancy risks, impairment risks and other warnings deemed necessary by the U.S. Surgeon General. The legislation also establishes a workable THC threshold of 1 percent total THC and consistent standards for cultivation.

The regulatory framework is modeled on the Alcohol and Tobacco Tax and Trade Bureau and FDA oversight systems regulating tobacco and alcohol. Legal hemp products would be limited to a maximum of 0.4 milligrams per container of total THC or other cannabinoids with similar effects.

What the Right Is Saying

Barr said the legislation would bring certainty to Kentucky farmers. Kentucky has demonstrated that hemp can be successfully regulated while supporting farmers and protecting consumers. This legislation builds on that success by creating a national framework that rewards responsible producers, eliminates bad actors, and ensures consumers have confidence in the products they purchase, he said.

Kentucky produced over 4.3 million pounds of hemp in 2024, making it the second-largest state for hemp production after California, according to USDA data. The ban on hemp-derived intoxicants was championed by Sen. Mitch McConnell (R-Ky.), who led the charge to legalize hemp in the 2018 farm bill with the intent that it be used in agriculture and textiles.

Barr's office told The Hill that the legislation has the White House's approval. A Trump administration official pointed to a December 2025 executive order expediting marijuana rescheduling and launching Medicare coverage of CBD as the administration's definitive position on the issue. In an April Truth Social post, President Trump said more must be done beyond his executive order.

Sen. Tim Sheehy (R-Mont.) said last week that a similar hemp bill in the Senate was forthcoming as a bipartisan group was coalescing around the issue. I'm optimistic that in a hyperpartisan time when it appears like we can't get anything passed, this might actually be a subject where we can see both executive and legislative success, Sheehy told members of HIFA on a Zoom call.

What the Left Is Saying

Craig, the top Democrat on the House Agriculture Committee, credited Minnesota with being the model for responsible hemp regulation. My commonsense legislation will give regulatory clarity to Minnesota farmers, brewers and small business owners and provide an alternative to short-sighted federal policies that threaten Minnesota jobs and consumer choice, she said in a statement.

Progressive groups have largely welcomed the effort. Hemp Industry and Farmers of America (HIFA) Executive Director Brian Swensen praised the bipartisan approach. Reps. Craig and Barr understand that this isn't a partisan issue – it's about protecting farmers who planted in good faith, small business owners who built legal companies, and consumers who deserve safe, tested, legal products instead of being pushed into an unregulated market, Swensen said.

Minnesota is home to 132 licensed grow operations, 96 processors and over 2,000 retailers, creating $300 million in revenue for the state, according to Craig's office. Industry groups including the U.S. Hemp Roundtable and Hemp Beverage Alliance have also lauded the legislation.

What the Numbers Show

The hemp industry has grown into an approximately $30 billion-a-year business over eight years since federal legalization, according to the U.S. Hemp Roundtable. The November 2026 ban will effectively classify any final hemp-derived cannabinoid product containing certain chemicals as a Schedule I controlled substance under scheduled hemp restriction regulations.

Minnesota statistics highlight the industry's economic footprint: 132 licensed grow operations, 96 processors, and over 2,000 retailers generating $300 million in state revenue. Kentucky's production of 4.3 million pounds in 2024 placed it second nationally behind California for hemp output.

The bill establishes a 1 percent total THC threshold for cultivation standards and limits legal hemp products to 0.4 milligrams per container of total THC or similar cannabinoids. Civil penalties for violations by those under 21 reach up to $1,000 per incident.

The Bottom Line

The introduction of the Lawful Hemp Protection Act comes less than six months before a scheduled November 2026 ban on hemp-derived intoxicants takes effect. The bill represents an attempt to create regulatory clarity for an industry that has expanded significantly since the 2018 farm bill removed hemp from the controlled substances list.

Barr's office indicated the White House supports the legislation, and a Senate companion bill is expected. Sheehy expressed optimism about achieving both executive and legislative action on hemp regulation. Industry groups including HIFA, the U.S. Hemp Roundtable, and the Hemp Beverage Alliance have endorsed the measure.

Key provisions to watch include FDA regulatory authority over products with established maximum cannabinoid levels, enforcement mechanisms for age restrictions, and how law enforcement will handle hemp impairment while driving under the same framework used for alcohol and other drugs. Whether the bill can advance through both chambers before the November ban takes effect remains to be seen.

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