New Federal Bill Seeks to Reverse Hemp-Product Ban — And Why It Matters

Let’s dive in: On November 17, 2025, Nancy Mace (R-SC) introduced the draft of the “American Hemp Protection Act of 2025”, targeting a controversial section of federal legislation that would dramatically restrict hemp-derived products. Cannabis Business Times

What’s the issue?

A recent government-funding bill included “Section 781” (part of the Continuing Appropriations, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026) which, among other things:

• Changes the definition of “hemp” so that cannabinoids manufactured or synthesized outside the plant (for example, delta-8 THC, HHC) may be excluded. Cannabis Business Times

• Limits ingestible hemp-derived products to 0.4 milligrams of total THC per container. Cannabis Business Times

• Reinforces that hemp plants must test below 0.3% total THC (including THCA) to be considered agricultural hemp rather than federally illegal cannabis. Cannabis Business Times

  
  

Representative Mace argues that this section was tucked into a must-pass funding bill — forcing lawmakers to vote either for the funding or against the harmful hemp language. She called it a “fatal blow to American farmers… and small businesses” in an industry that supports significant jobs and economic activity. Cannabis Business Times

Why does this matter to the hemp industry?

Quite simply: Many companies in the hemp-derived cannabinoid space believe this language threatens the very foundation of their business model. Here are some key implications:

• If the new definition stands as written, 90–95% of current ingestible hemp products could be rendered non-compliant. Cannabis Business Times

  
  

• The industry is estimated to support over 320,000 jobs and generate around $28.4 billion in regulated market activity in the U.S., with roughly $1.5 billion in state tax revenues. Cannabis Business Times

  
  

• Without a clear regulatory framework for hemp-derived cannabinoids, operators say they are vulnerable to black-market competition and regulatory uncertainty. Promoting what this ban is aiming to end - prohibition style; which we know DOES NOT WORK. Cannabis Business Times

  
  

What does the proposed bill do?

The draft legislation introduced does not propose a full regulatory overhaul—it simply aims to repeal Section 781 from the federal funding law. In other words: remove the harmful language and send the issue back to the drawing board. Cannabis Business Times

Mace emphasized that over the next year (before the Section 781 changes are to take effect on Nov. 13, 2026) she’ll work to build a “common-sense regulatory framework”: one that “protects America’s children, ensures product quality, and preserves access to products used by tens of millions of Americans.” Cannabis Business Times

What should hemp industry stakeholders do now?

For businesses and advocates across the nation, now’s the moment to mobilize. Here are some actionable steps:

• Stay informed: Follow the progress of the American Hemp Protection Act, and monitor how the current funding bill’s hemp language evolves in committee.

  
  

• Engage your representatives: Let your U.S.-house and senate members know how hemp-derived cannabinoid products affect your state’s economy and stakeholders. You can use this link to easily reach out to your local lawmaker.

  
  

• Build your story: Document local value — farmers, processors, retailers, jobs, tax revenue — and be ready to share that with policy-makers. Join us on our podcast to SHARE YOUR STORY; as we continue to cover this ban throughout the next year. Our podcast airs every 2 weeks on Thursdays at 6pm CST.

  
  

• Collaborate regionally: States are responding differently; learn from regulatory frameworks where hemp-derived cannabinoids are more mature and align with national efforts and find a neighboring industry player near you! We need to work together.

Why we at THE Dispensary are watching this

As a brand rooted in the hemp-derived cannabinoid space, this is a pivotal moment. The regulatory landscape could shift dramatically — and for better or worse. This proposed repeal is a critical lobbying moment for preserving access, maintaining market stability and preventing an unintended mass exit of legitimate actors.

For our audience, especially in markets like Wisconsin, Pennsylvania, North Carolina, Virginia and Ohio, it matters all the way down to the local retailer and consumer. The products they trust, the jobs supporting them, and the agriculture behind them are all at risk if regulations become overly restrictive or unclear.

Bottom Line

The introduction of the American Hemp Protection Act of 2025 marks a direct challenge to recently inserted federal restrictions targeting hemp-derived cannabinoid products. For the broader hemp-derived industry, it represents an urgent call to action: protect access, push for sensible regulation, and keep the momentum moving forward.

Here at THE Dispensary, we’ll keep tracking this closely — and you should too. The difference between staying in business and being shut out may hinge on how quickly and effectively the industry responds.