The Government Shutdown Is Over, but a New Fight Over THC Begins

Last week, the longest government shutdown in US history came to a close. The shutdown began at the beginning of October, when Congress failed to pass a continuing resolution or full appropriations for the 2026 fiscal year.

43 days later, Congress passed a deal which reopened the government . . . with some caveats, especially for the hemp-derived cannabinoid industry.

The spending bill that was passed last week included a last-minute provision that criminalized many hemp-derived products. The bill revises the legal definition of hemp, capping the sale of THC products to 0.4 milligrams per container.

For reference, most THC drinks or gummies contain 2.5 – 10 milligrams of THC. 

Hemp-derived products have been legal in Minnesota since 2022. The production and sale of THC products will still be permitted in the state; however, producers may no longer be able to do business across state lines. 

Proponents of the estimated $28 billion hemp industry have criticized the new ban, stating that it will severely impact breweries and other businesses that produce and sell hemp-derived products. The ban has a 365-day grace period and won’t take effect until next year, but it is expected to meet legal challenges.