Congress Moves to Ban Most Hemp-Derived THC Products

Proposed legislation could devastate a multi-billion dollar industry, say Minnesota business leaders.

Mar. 30, 2026 at 8:35pm

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A high-end, photorealistic studio still-life photograph featuring a collection of premium hemp-derived THC products arranged elegantly on a clean, monochromatic background, conceptually representing the abstract corporate strategy and financial risks facing this industry.As federal lawmakers move to restrict the booming hemp-derived THC market, industry leaders warn of the potential economic devastation.Washington Today

As part of a government funding package last November, Congress passed a bill that would enact a ban on most consumable hemp-derived THC products starting this November. The legislation caps the allowable THC level at 0.3 mg per product, which industry experts say is unsustainable for the current market. This could lead to the loss of thousands of jobs and millions in revenue, according to Bob Galligan of the Minnesota Craft Brewers Guild.

Why it matters

The hemp-derived THC industry has grown into a multi-billion dollar market since the 2018 Farm Bill legalized hemp production. However, some lawmakers have since sought to close what they view as a 'loophole' that allowed the creation of intoxicating hemp-derived products. This proposed federal crackdown could devastate a thriving industry that has become an important part of local economies.

The details

The current state law in Minnesota allows edibles to contain up to 5 mg of THC per serving and beverages up to 10 mg. But the new federal legislation would cap the THC level at just 0.3 mg per product, which Galligan says is 'unsustainable for any THC product out on the market right now.' He estimates that if this bill goes through, it would result in the loss of 2,300 jobs just among producers in Minnesota alone, not to mention the millions in lost revenue for businesses.

  • In November 2022, Congress passed a government funding package that included a bill banning most consumable hemp-derived THC products.
  • The legislation is set to go into effect this November 2023.

The players

Bob Galligan

The executive director of the Minnesota Craft Brewers Guild, who warns the proposed federal legislation could be 'catastrophic' for the hemp-derived THC industry.

Mitch McConnell

The Republican Majority Leader in the U.S. Senate in 2018, who fought for the legalization of hemp in the 2018 Farm Bill.

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What they’re saying

“It's technically not a ban, but it also kind of is, just because it caps the milligram level at 0.3 mg for any product. And that ultimately is unsustainable for any THC product out on the market right now.”

— Bob Galligan, Executive Director, Minnesota Craft Brewers Guild

“We know on our front as producers, a very low ball estimate we have if this language went through, would be 2,300 jobs just as producers would go away.”

— Bob Galligan, Executive Director, Minnesota Craft Brewers Guild

What’s next

Industry leaders like Galligan must now convince lawmakers in Washington, D.C. of the importance of the hemp-derived THC market and push for a more science-based regulatory solution before the November 2023 deadline.

The takeaway

This proposed federal crackdown on hemp-derived THC products highlights the ongoing tension between lawmakers seeking to close perceived 'loopholes' and an industry that has grown into a multi-billion dollar market since hemp was legalized in 2018. The fate of thousands of jobs and millions in revenue now hangs in the balance.