Congressional hemp THC ban threatens $28.3 billion market and 225,000 jobs

  • Congress imposed a 0.4-milligram cap on hemp-derived THC products.
  • $28.3 billion in retail revenue and 225,000 jobs are at risk, according to Whitney Economics.
  • Minnesota growers and processors have reduced hemp production ahead of December enforcement.

A federal restriction on hemp-derived THC is set to take effect in December after Congress changed the legal definition of hemp in a spending law enacted in November 2025. The measure caps hemp-derived THC in consumer products at 0.4 milligrams, far below the 2 to 10 milligrams or more found in many popular beverages and edibles, potentially eliminating the low-dose drinks and gummies at the center of a multibillion-dollar market. The original November start date was delayed by one month, with the current effective date set for Dec. 11. Products covered by the restriction are sold in at least 20 states where hemp-derived THC is legal. Whitney Economics has estimated that the ban could threaten $28.3 billion in retail revenue, 225,000 jobs and $2.1 billion in potential state sales taxes. The uncertainty is already affecting the supply chain: a Twin Cities hemp-emulsion facility has seen customers reduce purchases, all six Minnesota growers it works with skipped planting, and one Minnesota farmer switched to soybeans while holding about 15,000 pounds of unsold hemp. Congress has considered more than five proposals to protect the sector, including a bill co-sponsored by Senators Amy Klobuchar and Rand Paul that would return regulatory authority to individual states, but none has reached a vote. Industry groups support age restrictions, package-level THC limits and a ban on imported cannabis compounds, while regulated marijuana operators and public-health advocates support the federal restriction.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.