US to Ban Most Hemp-Derived THC Drinks and Edibles by 2026

New Law Ends Era of THC Drinks and Edibles

In late November 2025, U.S. lawmakers passed a provision hidden inside the government-funding bill that will substantially narrow the legal definition of hemp. As a result, most hemp-derived products containing any significant amount of THC — including beverages, gummies, snacks, vapes, and other edibles — will be federally banned. The measure takes effect in November 2026, giving producers a one-year transition period. The Washington Post+2ABC News+2

Under the new rule, a hemp product must contain no more than 0.4 milligrams of total THC per container to remain legal — a threshold far lower than what typical THC drinks or edibles currently contain. Yahoo+1 The law also bans synthetic or chemically converted cannabinoids (such as delta-8, delta-10, etc.), which have fueled much of the “intoxicating hemp” market. Cannashield+1

Industry Shock and Economic Fallout

The decision marks a dramatic reversal for an industry that ballooned in recent years. Hemp-derived THC drinks once provided a legal, alcohol-free option for many consumers — and a major revenue stream for craft beverage makers. The Washington Post+1

The economic consequences could be steep: estimates from industry groups warn that hundreds of thousands of jobs may be lost, and tax revenues from hemp products — which once contributed significantly at state and local levels — could vanish. The Washington Post+1

For small businesses in particular — such as breweries, specialty shops, and hemp startups — the ban is potentially devastating. Many have built their business models around THC-infused products; now, they face either shutting down or retooling their operations entirely. The Washington Post+1

Why the Change? Closing a Legal Loophole

The root of the shift goes back to the Hemp Farming Act of 2018, which legalized hemp under federal law so long as it contained less than 0.3 % THC (delta-9). Wikipedia+1

That definition, however, allowed manufacturers to exploit a loophole: they could extract non-intoxicating CBD from hemp, then chemically convert it into psychoactive cannabinoids (such as delta-8 or delta-10) — producing drinks, gummies, and vapes that delivered a “high” and circumvented marijuana laws. The Washington Post+1

Critics of the old policy argued the loophole led to widespread, under-regulated sale of psychoactive hemp products — often accessible to minors at gas stations, convenience stores, and unlicensed retailers. The new legislation seeks to end that, effectively re-classifying most such products as illicit. ABC News+1

What’s Next — Industry Pushback and Possible Regulation Alternatives

Many hemp businesses and advocacy groups are scrambling to respond. Some are urging lawmakers to revise the new rule — suggesting tighter regulation, lab testing, age restrictions, and responsible labeling rather than a full ban. The Washington Post+1

Others warn that, unless regulations are changed, the ban could push consumers toward the unregulated black market — defeating the original intention of improving safety and oversight. The Washington Post+1

Meanwhile, a few states that had already moved to regulate or restrict hemp-derived THC products may now consider legalizing under-threshold beverages — or push for state-level dispensary-only laws. ABC News+1