Advocates say the change would devastate the growing hemp industry created after its federal legalization.
A last-minute provision tucked into Congress’ budget bill could make THC-infused beverages, including popular hemp-based seltzers, federally illegal within a year.
The measure, part of the Continuing Appropriations and Extensions Act, 2026 (H.R. 5371), would redefine hemp and cap total THC content at 0.4 milligrams per container, effectively outlawing most products currently on the market.
That includes THC seltzers — drinks that have surged in popularity as an alcohol alternative since the 2018 Farm Bill legalized hemp-derived products. Many brands, such as Flavor Pixels, typically contain 5 to 10 milligrams of THC per can.
Industry advocates say the change would devastate the growing hemp economy created after hemp’s federal legalization.
“We are deeply disappointed by Congress’ passage of H.R. 5371… with restrictive hemp provisions that will eliminate the nation’s $28 billion hemp economy,” the Texas Hemp Business Council said in a statement Monday. “Farmers will lose critical markets, small businesses will be forced to close, and more than 300,000 people will lose their jobs.”
The hemp restriction was inserted late in negotiations and drew bipartisan opposition. Sen. Rand Paul, R-Ky., led an effort Monday to remove the language, calling the measure “a backdoor federal ban on hemp.” He was joined by Minnesota Democrats Amy Klobuchar and Tina Smith, but the motion failed in a 76-24 vote.
If passed by the House in its current form, the new restrictions would take effect one year after being signed into law.
The push to close what some lawmakers call a “THC loophole” follows concerns from 38 state attorneys general, who urged Congress to crack down on unregulated hemp-derived THC products. In a letter earlier this year, the attorneys general described “Frankenstein THC products that get adults high and harm and even kill children.”
While their warnings largely focused on illicit THC gummies marketed to minors, hemp advocates argue the new federal definition goes too far — banning everything from mild THC seltzers to non-intoxicating CBD products that contain trace amounts of THC.
Under the 2018 Farm Bill, hemp was defined as cannabis with less than 0.3% delta-9 THC, the compound responsible for marijuana’s high. The new provision broadens the restriction to include all forms of THC, such as delta-8 and THCA, which are common in hemp-based products.
The bill now heads to the House of Representatives, which could vote as early as Wednesday. It needs 218 votes to pass. Despite the Republican majority, several GOP lawmakers — including Kentucky’s James Comer, Thomas Massie and Andy Barr — have spoken out against the ban, citing its economic impact on farmers and small businesses.
The amendment, known as a rider, is being carried on the back of a budget bill designed to end the longest government shutdown in U.S. history. Despite opposition from some congressmembers, the bill as a whole is expected to pass in the GOP-controlled House and arrive on the president’s desk sometime before the end of the week.
Lou Raguse contributed to this report.
