By Paula Savchenko, Esq.
To narrowly avert a government shutdown, Congress approved a 118-page funding package that extends government funding through March 2025, while also approving its second extension of the Farm Bill. The spending measure offers significant relief to farmers and rural industries, allocating $10 billion in economic disaster assistance to address substantial losses within the agricultural sector. The extension’s primary focus was maintaining funding for programs supporting farmers and rural communities, leaving hemp regulations untouched. So, what does this mean for the hemp industry in 2025?
Federal Level
Since the passage of the 2018 Farm Bill, hemp has been legally defined as containing no more than 0.3% delta-9 THC on a dry-weight basis. Pursuant to the United States Department of Agriculture (USDA) regulations, this potency limit is determined through a pre-harvest test that is performed within 30 days of harvest, a period when the plant’s THC concentration is typically at its lowest. While this framework established a clear standard for raw hemp, a key omission in the 2018 Farm Bill was a lack of guidance on testing and/or regulating finished hemp products. This gap in the law has inadvertently enabled the proliferation of intoxicating hemp-derived products, such as those containing delta-8 THC and other psychoactive cannabinoids, in interstate commerce.
In response, Congressional leaders have raised concerns about this regulatory loophole. Many have proposed including tetrahydrocannabinolic acid (THCA)—a nonintoxicating precursor to THC that converts into the psychoactive compound through decarboxylation—within the definition of hemp under the next reauthorization of the Farm Bill. Prior legislative proposals have sought to redefine the 0.3% potency limit to include THCA in the “total THC” content. This approach is favored by prohibitionists and many cannabis industry stakeholders who argue this loophole allows hemp operators to forego the stricter regulations governing cannabis operations. Although the federal government has yet to implement changes affecting hemp operations, momentum is growing among state lawmakers to impose tighter restrictions—or outright bans—on intoxicating hemp-derived products.
State Level
From coast to coast, 2024 marked a pivotal year for the implementation of stricter hemp regulations at the state level. In California, Governor Gavin Newsom introduced emergency regulations that effectively cripple the state’s hemp industry. These proposed rules mandate that all industrial hemp food, food additives, beverages, and dietary supplements intended for human consumption have no detectable THC or other intoxicating cannabinoids. The regulations also broaden the definition of “intoxicating cannabinoids” to include an additional 30 cannabinoids and isomers.
On the East Coast, New Jersey and Georgia enacted restrictive measures targeting hemp operators. Although riddled with issues, New Jersey Senate Bill No. 3235 defined “intoxicating hemp product” as any product that has a concentration of total THC greater than 0.5 milligrams per serving or 2.5 milligrams per package. Meanwhile, the Georgia Hemp Farming Act (Senate Bill 494) took effect, which among other things, closed the THCA loophole by requiring hemp and consumable hemp products to be tested for total delta-9 THC concentration, including THCA. This effectively removed most, if not all, THCA products from the state’s market.
As the 2025 legislative sessions begin, several states are actively pursuing measures to restrict or ban intoxicating hemp products. In Texas, Lieutenant Governor Dan Patrick and Agriculture Commissioner Sid Miller have publicly supported restricting, if not banning, all intoxicating hemp products in the Lone Star state. With the support of Governor J.B. Pritzker, the Illinois Senate has approved legislation to limit the amount of THC that can be included in hemp products. Following the roll-out of its adult-use program in 2024, Ohio lawmakers are moving forward with their proposed bills to ban intoxicating hemp products despite opposition from industry workers who argue such measures would harm businesses. With the federal government maintaining its hands-off approach this year due to the one-year delay, the hemp industry faces another challenging year in 2025. State-level actions addressing intoxicating hemp products continue to create uncertainty for operators nationwide.
Conclusion
The ongoing debate over hemp regulations highlights the tension between preserving opportunities for hemp farmers and addressing the proliferation of the gaps remaining in the 2018 Farm Bill. Many are curious about how far Congress and state lawmakers are willing to impact this multi-billion-dollar industry that brings significant revenue and job growth throughout their agricultural economies that have been drastically hit in recent years. As Congress works on the next iteration of the Farm Bill, the future of intoxicating hemp products remains a contentious issue, with significant implications for the industry and its stakeholders alike.
About Paual Savchenko
Paula Savchenko, Esq. is the founder of Cannacore Group, a multi-state cannabis and psychedelic licensing firm, and PS Law Group, a regulated substances law firm. As an attorney and consultant, she primarily works in the cannabis and psychedelic industries, working with clients on multi-state expansion initiatives. For more information, please visit www.cannacoregrp.com and https://www.pslawgrp.com.
