On November 12, 2025, President Trump signed into law a federal measure that substantially limits the production and sale of hemp-derived intoxicating products across the country. The legislation, tucked into the broader bill that ended the lengthy government shutdown, has generated immediate concern throughout the national hemp industry, with many businesses warning that the new standards may effectively force them out of the market.

Under the newly enacted federal framework, the definition of “hemp” is significantly tightened. All forms of THC, including isomers and precursor compounds capable of producing a psychoactive effect, will now count toward the federal limit. This redefinition includes THCA and other hemp-derived THC compounds that the hemp-derived cannabis market primarily manufactured and sold under the prior version of the law.

The new law also imposes a 0.4 mg total THC limit per container of hemp product.  The prior limit was 0.3% on a dry-weight basis, which still applies in addition to the 0.4mg cap.  This has the effect of significantly limiting the amount of hemp-derived THC that is permissible in a given package.  Products that exceed the new threshold will now fall under federal cannabis prohibitions.

The FDA has also been directed to issue updated classifications of naturally occurring cannabinoids within the cannabis plant and to identify compounds that fall within the broader THC category. Businesses will be required to adjust their product lines, labeling, and manufacturing practices once those classifications are released.

The industry’s reaction has been swift. Many cultivators, processors, and retailers assert that the revised definition departs sharply from the structure Congress established in 2018 and destabilizes a market that has grown substantially over the past several years.

Businesses have been given a one-year deadline, until November 12, 2026, to remove non-compliant products from commerce and bring their operations into alignment with the federal standards. The rapid turnaround has triggered widespread concern among manufacturers and retailers, particularly those whose product catalogs depend heavily on intoxicating hemp derivatives. As the compliance period begins, it remains uncertain how federal regulators will balance their stated public-health objectives with the needs of businesses that have operated in reliance on previous federal guidance.

If you have any questions about cannabis laws and regulations in New Jersey, contact Justin Calta or Michael Grohs of Saiber LLC’s Cannabis Law practice.