Riata Meldrum, Research Fellow
Rusty Rumley, Senior Staff Attorney
On November 12, 2025, Public Law 119-37 was signed into law with an effective date of November 12, 2026 for industrial hemp. The core function of the legislation was to fund the federal government for the 2026 fiscal year—October 2025 through September 2026. In addition to this funding, P.L. 119-37 redefined the categorization of hemp, effectively closing the “loophole” for hemp production under the 2018 Farm Bill. This article will discuss the background leading to the current state of this recategorization and what to look for in coming months.
Background
From the 1970’s though 2018, cannabis and its derivatives were all generally included in the definition of “marijuana,” which is classified as a Schedule I controlled substance. The 2018 Farm Bill created a legal pathway for hemp that tests on a dry weight basis at or below 0.03% total Delta-9 tetrahydrocannabinol (THC). This allowed for the production of industrialized hemp and most cannabinoids such as cannabidiol (CBD) in the United States.
Though Delta-9 THC is the primary naturally occurring psychoactive compound in cannabis, it is not the only the only psychoactive compound. The 2018 Farm Bill required the testing for Delta-9, but does not impose limits on hemp produced with higher percentages of other psychoactive compounds, including Delta-8, Delta-10, and tetrahydrocannabinol acid (THCA). When the CBD market started to collapse, hemp processors began chemically converting CBD into other psychoactive cannabinoids which avoided the Delta-9 limitation.
P.L. 119-37, Division B, § 781 addresses this issue, reclassifying “hemp” for the purposes of growth and use in the U.S. With an effective date of November 12, 2026, the new law will require hemp to be tested for total THC, and not just Delta-9 THC. Total THC content must test on a dry weight basis at or below 0.03%. Products that test above this limit lose their classification as “hemp” and are reclassified as “marijuana,” which remains strictly regulated at the federal level.
Congressional Action
With the November 12th deadline quickly approaching, and a government shutdown on the line if another appropriations bill is not passed on or before September 30th (the end of the 2026 fiscal year), the Congressional House and Senate have both passed stopgap spending bills.
The House passed H.R. 9770 on July 21, 2026 to extend funding through December 4, 2026, however, the bill did not provide for an extension of the November 12 effective date for the reclassification of hemp. The Senate did not vote on H.R. 9770 and instead voted on a different House appropriations bill.
The Senate passed H.R. 6500 on August 8, 2026. This Senate action moves to extend funding through December 11, 2026. In doing so, it also provides for various expiring programs and authorities. Notably, H.R. 6500 expressly delays the implementation of “certain changes to the statutory definition of hemp.” This is accomplished through extending the effective date for the amendments to P.L. 119-37 until December 11. This extension would allow for the continued sale at the federal level of cannabinoids such as intoxicating hemp isomers like Delta-8 and Delta-10. On September 1, the House also passed H.R.6500 which sends the bill to the President’s desk.
Current Status
If the current bill is not signed into law, or another appropriations bill is not enacted, for the 2027 fiscal year before September 30th then the government will begin the shutdown process, and the current reclassification of hemp will go into effect on November 12, 2026 unless amended by future legislation. If H.R. 6500 is signed into law, then it will extend the reclassification of hemp products into the lame duck session of Congress where there will be an opportunity to potentially amend the legislation. Congress will have a relatively short time frame to amend the reclassification language so it will be important to closely follow any legislative actions.
For updates on this matter as they come, please check the NALC Feed, available here.
To read a Congressional Research Service overview of hemp, click here.
For a state compilation of industrial hemp laws, click here.
For more NALC resources on industrial hemp, click here.