House Committee Advances Hemp Reform Bill That Could Ban THCA and Reshape the Cannabinoid Industry

25 June 2025

In a dramatic turn that could reshape the future of hemp-derived cannabinoid products, the U.S. House Appropriations Committee approved a sweeping proposal on June 23 as part of the fiscal year 2026 Agriculture, Rural Development, Food and Drug Administration appropriations bill. Spearheaded by Rep. Andy Harris, the provision seeks to close what he has called a "loophole" in the 2018 Farm Bill redefining hemp to prohibit any product containing quantifiable amounts of THC, THCA, or other intoxicating cannabinoids, a move industry advocates warn could decimate the hemp marketplace.

While framed as a public safety measure aimed at regulating intoxicating substances, the proposal casts a wide net. Under its terms, any hemp-derived product with detectable THC or THCA even the trace amounts naturally present in most CBD goods would lose legal protection. This would place a dramatic restriction on products that have become staples of the multi-billion-dollar hemp industry edibles, tinctures, beverages, supplements, vape blends, and smokable hemp flower all of which have flourished since hemp's legalization under federal law .

Proponents including Rep. Harris and committee chair Tom Cole argue that intervening is long overdue. Harris, chair of the Agriculture Subcommittee, described the bill's cannabis-specific language as carefully crafted to shield industrial uses of hemp fiber, grain, seeds, hulls, and non-cannabinoid microgreens from unintended consequences. "It is time for Congress to act to close this loophole, while protecting the legitimate industrial hemp industry," he stated during the markup.

The legislation also tasks the Department of Health and Human Services in consultation with the USDA with setting precise thresholds for what counts as a "quantifiable amount," hopefully enabling some flexibility.

Opponents counter that this definition is far too vague and threatening, potentially outlawing mainstream hemp products that rely on trace THC to maintain efficacy or improve bioavailability. Renée Johnson of the Congressional Research Service recently highlighted that the legislation would "effectively prohibit production and sale of hemp-derived cannabinoids, derivatives, and extracts thereof, including cannabidiol (CBD)" the very backbone of the current industry.

Trade groups like the U.S. Hemp Roundtable have also sounded the alarm. In a sharp response to the bill’s language tucked inside a lengthy appropriations document, their members called on lawmakers to take notice and urged constituents to voice their concerns. Meanwhile, the American Trade Association of Cannabis and Hemp (ATACH) expressed openness to federal standards for intoxicating cannabinoid products, but emphasized that natural derivatives even if psychoactive should be differentiated from synthetic substances.

State governments are following suit. Texas Governor Greg Abbott recently vetoed a sweeping ban on hemp-derived THC and called for a regulatory rather than prohibitive approach. His move reflected broader confusion and inconsistency across state lines, with some states completely outlawing intoxicating cannabinoids and others permitting limited access with age restrictions and potency caps highlighting the uneven regulatory landscape the federal bill seeks to address .

From the industry’s perspective, this federal legislation could obliterate a thriving sector. A broad range of products from CBD oil supplements to topicals and edibles rely on 0.3 percent THC thresholds under current law and are sold in thousands of outlets nationwide. Removing that allowance would likely shutter many businesses or force costly reformulation to meet uncertain new standards .

Behind the scenes, advocates worry about sudden damage to jobs, investment, and consumer access. An MJBizDaily report noted that over 32 states have enacted some form of regulation for intoxicating hemp cannabinoids, and businesses fear any sweeping federal restrictions would outpace state efforts and destabilize markets.

If ultimately adopted by Congress, the measure would mark a significant shift in federal hemp policy one that could redefine the future of the industry at a moment of unprecedented expansion. Hemp-derived cannabinoid sales have surged since 2018, with companies now spanning national distribution and generating billions in revenue. But in Washington, the conversation has evolved from market support to public safety, enforcement, and accountability with lawmakers feeling compelled to act .

“This legislation supports safety while preserving core agricultural uses,” Cole said in his summary of the bill. Yet beneath such assurances, many in the industry fear their days may be numbered. They warn that reclassification could wipe out entire product categories overnight, barring businesses from federal legitimacy.

The Appropriations Committee approved the bill along party lines, 35-27. Next stop: the House Rules Committee, where it awaits floor action. With a must-pass bill like this, the potential for bartered amendments looms large but so does the threat that any change could upend years of growth and investment in hemp.

As debate continues, stakeholders are urging a measured approach: one that protects public safety and youth access without dismantling a legal industry built under federal law. For many growers, manufacturers, retailers, and consumers, the future of hemp may now lie in the hands of bureaucrats and legislators and a few carefully chosen words in a sprawling budget document.

This battle is about more than THC or CBD it’s the story of American agriculture evolving into wellness, innovation, and entrepreneurship. As lawmakers confront new complexities, hemp stands at a crossroads between prohibition and regulation. How the story unfolds could determine whether hemp survives or collapses under the weight of overreach.