New Federal Hemp Law Explained
What Hemp Operators Should Do Next
A major change to federal hemp regulations is currently scheduled to take effect
December 11, 2026.
The new federal definition of hemp could significantly impact hemp farmers, processors, laboratories, retailers, ecommerce businesses, delivery companies, mobile vendors, manufacturers, wholesalers and ancillary businesses serving the hemp industry.
Most of the changes were originally scheduled to take effect November 12, 2026, but federal legislation signed September 2 temporarily delayed implementation until
December 11, 2026.
Certain restrictions involving cannabinoids that cannot be naturally produced by the cannabis plant are still scheduled to take effect November 12.
See Continuing Updates below for the latest developments.
The Old Rule and the New Rule Measure THC Differently
2018 Farm Bill Rule
Under the 2018 Farm Bill, hemp was federally defined using a 0.3% Delta-9 THC concentration by dry weight standard.
Because the calculation was based on the product's weight, finished products could contain measurable amounts of Delta-9 THC while remaining within the federal hemp definition.
For example:
- A gummy product weighing 5 grams (5,000 mg) could contain approximately 15 mg of Delta-9 THC at a 0.3% concentration.
- Heavier finished products could contain substantially more THC while still satisfying the dry-weight calculation.
This dry-weight standard helped create the market for hemp-derived beverages, gummies and other cannabinoid products sold throughout the United States.
New Federal Hemp Rules Scheduled for December 11, 2026
The new federal definition takes a much broader approach to THC and hemp-derived cannabinoid products.
For
final hemp-derived cannabinoid products, the law establishes a limit of:
0.4 mg combined total per container
The calculation includes
total THC, including THCA, as well as other cannabinoids determined to have—or marketed as having—effects similar to THC.
The limit applies to the
container, not each individual serving, gummy or dose.
That means the entire bottle, pouch, bag, can or other qualifying container is evaluated against the federal limit.
Examples of Products Likely to Be Affected
Products that may exceed the new federal limits or otherwise fall outside the new federal definition of hemp include:
- Delta-9 hemp gummies
- Hemp-derived THC beverages
- THCA flower
- THCA concentrates
- Delta-8 products
- Delta-10 products
- Full-spectrum CBD products containing measurable amounts of THC
- Certain synthesized or manufactured cannabinoid products
Businesses should not assume that a product currently qualifying as hemp under the 2018 Farm Bill will continue to qualify after the new rules take effect.
Products That May Be Better Positioned
Depending on formulation and testing, products that may be better positioned under the new federal definition include:
- CBD isolate products
- Broad-spectrum CBD products with non-detectable THC
- THC-free wellness products
- Certain topicals with non-detectable THC
Individual products should be evaluated based on their formulation, Certificates of Analysis (COAs) and applicable federal and state requirements.
What Counts Toward the New Federal Hemp Limits?
The new federal definition is broader than the 2018 Farm Bill's Delta-9-only standard.
It considers
total THC, including THCA, and also addresses other cannabinoids with effects similar to THC.
The law also places restrictions on hemp-derived cannabinoid products containing cannabinoids that:
- Cannot naturally be produced by the cannabis plant; or
- Can occur naturally but were synthesized or manufactured outside the plant.
Because formulations vary considerably, hemp businesses should review their current products and COAs rather than relying solely on the Delta-9 THC percentage previously used to determine federal hemp status.
Why Did Congress Change the Hemp Definition?
When Congress passed the 2018 Farm Bill, it created a federal framework for legal hemp production and products.
The 0.3% Delta-9 THC dry-weight standard also contributed to the development of a large market for hemp-derived cannabinoid products, including intoxicating products containing Delta-8, Delta-9 THC and THCA.
These products frequently operate outside state-regulated marijuana programs and may be subject to different licensing, testing, taxation and distribution requirements.
Supporters of changing the federal hemp definition have cited concerns including:
- Availability of intoxicating hemp products
- Youth access
- Product testing and consumer safety
- Synthetic and manufactured cannabinoids
- Differences between hemp and state-regulated cannabis markets
The changes remain the subject of significant debate within Congress and the hemp and cannabis industries.
What Does This Mean for Hemp Operators?
The impact will depend heavily on the products a business sells.
Businesses selling intoxicating hemp-derived cannabinoids, THCA products or full-spectrum CBD products containing measurable THC should pay particularly close attention to the new requirements.
Businesses selling CBD isolate, broad-spectrum CBD or THC-free products may have more options, but products should still be reviewed individually for compliance.
State laws also continue to apply and may be more restrictive than federal requirements.
Payment Processing Considerations
Changes in federal hemp law can also affect payment processing.
Banks, payment processors, card networks, ecommerce platforms and other financial service providers may update their underwriting and compliance requirements as the new federal rules take effect.
At CBS Payments, we continue to work with hemp businesses and payment providers as these requirements evolve.
Hemp operators should review:
- Products being sold
- Current COAs
- Ecommerce websites
- Product descriptions and marketing claims
- Shipping restrictions
- State-specific requirements
- Payment processor underwriting requirements
A product that is acceptable for processing today may need to be reviewed again as federal and state requirements change.
The Simplest Way to Explain It
Old standard: 0.3% Delta-9 THC by dry weight.
New standard: A broader total-THC standard plus additional restrictions on hemp-derived cannabinoid products, including a
0.4 mg combined total per container limit for certain final hemp-derived cannabinoid products.
That change could significantly reshape today's hemp marketplace.
Industry Perspective
"We're sharing updates with our merchants as information becomes available. My tip to hemp businesses is to review your Certificates of Analysis (COAs) now and determine how your current products may be affected by the new federal hemp definition.
AI tools such as ChatGPT can also be helpful for reviewing COAs and identifying questions to discuss with your compliance professionals.
We're still onboarding new hemp merchants and helping businesses evaluate their payment processing options as the regulatory landscape continues to evolve."
Catherine M. Zito
Founder & CEO
CBS Payments
Planning Ahead
The hemp industry has adapted to regulatory changes before, and businesses that prepare early will be better positioned to respond.
Whether you operate a retail store, ecommerce website, delivery service, mobile sales operation, manufacturing company or wholesale business, now is a good time to review your products and payment strategy.
The key date currently facing most of the industry is
December 11, 2026.
Congress could take additional action before then, so businesses should continue monitoring federal developments rather than assuming the current timeline is final.
Continuing Updates
September 2, 2026 – Federal Hemp Restrictions Delayed to December 11
President Trump signed legislation temporarily extending most of the new federal hemp restrictions originally scheduled to take effect November 12, 2026.
The 0.4 mg combined total per container limit and most other changes to the federal definition of hemp are now scheduled to take effect
December 11, 2026.
Certain restrictions involving cannabinoids that cannot be naturally produced by the cannabis plant remain scheduled to take effect
November 12, 2026.
This is a temporary extension, not a repeal. Unless Congress takes further action, the broader federal hemp restrictions will take effect December 11.
CBS Payments will continue monitoring federal developments and sharing meaningful updates as they become available.
Resources
- Agriculture Improvement Act of 2018 (2018 Farm Bill)
- Federal legislation amending the definition of hemp
- USDA Hemp Program
- FDA CBD and cannabinoid guidance
- State hemp regulations
- Qualified legal counsel specializing in hemp and cannabis compliance
This article is intended for educational purposes only and does not constitute legal advice. Hemp businesses should consult qualified legal counsel regarding federal and state compliance requirements.
Need Help Navigating the Changes?
If you'd like to discuss your payment processing options or simply talk through the changes, we're happy to help.
As regulations continue to evolve, our team remains committed to supporting hemp businesses nationwide and sharing meaningful updates as they become available.
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