Opening Summary
The new federal hemp definition arrives in two steps, and the first one is this Thursday. On November 12, 2026, hemp-derived cannabinoid products containing cannabinoids the cannabis plant can't naturally produce, such as THC-O, stop qualifying as hemp. A month later, on December 11, 2026, the rest of the definition kicks in: a total-THC standard, a bar on cannabinoids converted or synthesized outside the plant, and a 0.4-milligram per-container cap on final products. Manufacturers, retailers, growers and their banks are watching both dates.
The Federal Laws Behind the New Hemp Definition
The change comes from the FY2026 agriculture appropriations law, P.L. 119-37, Division B, § 781. It rewrites the hemp definition the 2018 farm bill placed at 7 U.S.C. § 1639o. Congress enacted it on November 12, 2025, with a one-year runway ending November 12, 2026.
On September 2, 2026, the President signed the Continuing Appropriations and Extensions Act, 2027 (P.L. 119-103). Section 2019 of Division B says that until December 11, 2026, the section 781 amendments apply only to the products described in paragraphs (1)(C)(ii)(I) and (1)(C)(iv)(I) of the new definition in 7 U.S.C. § 1639o. Those are the parts of two exclusions, one for intermediate and one for final hemp-derived cannabinoid products, covering cannabinoids not capable of being naturally produced by the plant. Everything else waits. December 11 is also when the stopgap government funding in P.L. 119-103 expires.
From Delta-9 to Total THC: The Core Change
The 2018 definition capped hemp at 0.3 percent delta-9 THC on a dry weight basis. Some read that to allow products at or under 0.3 percent delta-9 that still carried plenty of other intoxicating cannabinoids, delta-8 THC among them. The Congressional Research Service (CRS) notes that critics dubbed this reading the "THC loophole." The new definition closes it on paper by capping total THC, including THCA, at 0.3 percent on a dry weight basis.
What Changes on November 12, 2026: Non-Naturally Occurring Cannabinoids
From November 12, intermediate and final hemp-derived cannabinoid products that contain cannabinoids "not capable of being naturally produced" by a Cannabis sativa L. plant fall outside the hemp definition.
Which Products Are Affected
CRS uses THC-O (THC acetate ester) as its example of a cannabinoid that doesn't occur naturally in cannabis. Delta-8 THC does occur naturally. So delta-8 products aren't swept in by the November 12 exclusion on that basis alone. Their bigger exposure comes December 11, under the exclusion for naturally occurring cannabinoids converted or synthesized outside the plant and under the new THC caps.
Controlled Substance Exposure
Once excluded, these products aren't hemp. According to CRS Legal Sidebar LSB11496 (Oct. 28, 2026), they will be treated as controlled substances to the extent they fall within the Controlled Substances Act's definitions of marijuana or THC. Where that applies, they are Schedule I substances, and manufacturing, distributing or possessing them with intent to distribute carries federal controlled-substance exposure whatever the label says or wherever the product is sold.
The same sidebar adds some history. DEA said in a 2023 letter that THC-O is a Schedule I substance. The Fourth Circuit, in Anderson v. Diamondback Investment Group (2024), treated THC-O products as hemp under the old definition. CRS says the new exclusion will categorize products such as THC-O as controlled substances under the CSA.
What Changes on December 11, 2026: THC Caps and Conversion Limits
The rest of the new definition takes effect December 11. From that date, hemp:
- Uses a total THC standard. The limit is 0.3 percent total THC, including THCA, on a dry weight basis.
- Excludes viable seeds from high-THC plants. Seeds from a plant above 0.3 percent total THC (including THCA) won't qualify. The test is the parent plant's THC, not the seed's.
- Excludes converted and synthesized cannabinoids. That covers hemp-derived cannabinoid products containing cannabinoids that can occur naturally but were synthesized or manufactured outside the plant. Many delta-8 products made by converting CBD fall here.
- Caps intermediate products. Intermediates (not in final form, or marketed to be mixed into another substance) are excluded above 0.3 percent combined total THC and other cannabinoids with similar effects.
- Excludes intermediates sold as final products. Intermediates such as bulk distillate, isolate or mix-in powder that are marketed or sold as a final product, or directly to an end consumer for personal or household use, are excluded.
- Caps final products at 0.4 mg per container. Final products are excluded above 0.4 milligrams combined total per container of total THC and similar cannabinoids. "Container" means the innermost packaging in direct contact with the product for retail sale.
The definition also expressly includes industrial hemp: hemp grown for stalk, fiber or other non-cannabinoid stalk products; hemp grown for whole grain, oil, cake, nut, hull or other non-cannabinoid seed products; microgreens and other edible leaf products from immature plants grown from seeds within the 0.3 percent total THC threshold; hemp that doesn't enter commerce and supports research at an institution of higher education or an independent research institute; and viable seed grown solely to produce those materials. Products excluded from the definition aren't hemp and are instead subject to the CSA.
FDA Cannabinoid Lists and Container Guidance Are Still Missing
P.L. 119-37 told FDA to publish four things within 90 days of enactment, a deadline that passed on February 10, 2026:
- a list of cannabinoids known to be capable of being naturally produced by the plant;
- a list of naturally occurring THC-class cannabinoids;
- a list of other cannabinoids with effects similar to THC-class cannabinoids; and
- more detail on the term "container."
As of CRS's October 28, 2026 sidebar, FDA had not published any of them, and we've found no FDA publication since.
Why does that matter? Because the whole structure leans on those lists. The November 12 exclusion turns on which cannabinoids are "naturally produced." The December 11 caps turn on which cannabinoids have THC-like effects, and the statute ties that "similar effects" question to a determination by the Secretary of Health and Human Services. With no list in hand, businesses have no agency answer to those questions and may look to peer-reviewed literature and their own testing instead.
USDA Hemp Testing: DEA-Registered Lab Enforcement Delayed Through Dec. 31
USDA's Agricultural Marketing Service has delayed enforcement of the requirement that hemp grown under the U.S. Domestic Hemp Production Program be tested by DEA-registered laboratories. Labs that aren't DEA-registered may keep testing through December 31, 2026, if they meet all other requirements. The delay doesn't touch the product deadlines above. The grace period ends December 31, 2026, so growers and processors may want to review their lab's DEA registration status ahead of 2027 testing.
Could Congress Delay the Hemp Deadlines Again?
Possibly, but nothing has passed. According to CRS, introduced bills would delay the new definition for two more years (H.R. 7024, H.R. 7010 and S. 3686) or repeal it (H.R. 6209). The House-passed FY2027 agriculture appropriations bill (H.R. 8646) has no delay. Other bills would raise the limit to up to 1 percent delta-9 THC (S. 2112) or total THC (H.R. 9830), defer to state definitions (S. 4315), or, per CRS, set regulatory frameworks through agencies such as FDA (H.R. 7212, H.R. 9830, H.R. 10079, S. 3474).
Timing is the interesting part. December 11 coincides with the end of current government funding, so the next funding bill is one possible vehicle for further change. There's also real disagreement in the record. CRS reports that attorneys general in several states opposed the delay, saying states have already altered or aligned their laws with the new definition, while some hemp industry groups prefer regulation through agencies like FDA. Until Congress acts, the dates in current law stand.
Who Is Affected by the New Hemp Rules
Cogent Law tracks these changes through its Cannabis and Hemp Law practice, and the effects differ by role.
Hemp and CBD manufacturers and processors. THC-O and other non-naturally occurring cannabinoids face November 12. Converted cannabinoids, intermediates above 0.3 percent and final products above 0.4 mg per container face December 11.
Intoxicating-hemp brands. Delta-8 products, THC beverages, gummies and other edibles are the most exposed.
Retailers and distributors. Convenience stores, smoke shops, dispensaries with hemp lines and online sellers hold inventory whose legal status can change overnight.
Growers. The total-THC standard, including THCA, changes how crops and seeds are evaluated and may affect some state hemp plans.
Banks, credit unions and payment providers. Institutions serving hemp businesses, a topic covered by Cogent Law's Cannabis and Hemp Banking practice, may reassess customer risk. Revenue from products that become controlled substances can raise many of the same issues as marijuana-related accounts, and some institutions may adopt closer product-line review, enhanced due diligence or account restrictions.
Hemp Compliance Issues Businesses May Want to Review
State rules can be stricter than or different from the federal definition.
Tied to the November 12 date:
- Which cannabinoids appear in each product, including minor and converted ones.
- Whether any product contains THC-O or another cannabinoid the plant doesn't naturally produce.
- How products that may fall within the exclusion are handled, and how those decisions are documented.
Tied to the December 11 date:
- How products measure against the total-THC standard, including THCA, rather than delta-9 alone.
- Total THC and similar cannabinoids per container for final products, measured by the innermost retail packaging.
- Whether any intermediates exceed 0.3 percent combined total THC and similar cannabinoids.
- Whether any products use cannabinoids converted or synthesized outside the plant, including CBD-derived delta-8.
- Whether any intermediate (bulk distillate, isolate, mix-in powder) is sold directly to consumers or marketed as a final product.
- What happens to remaining inventory: reformulation, sell-down or destruction.
Ongoing:
- Whether FDA has published its cannabinoid lists and container guidance.
- The status of delay and repeal bills, including any in the next funding bill.
- Whether testing labs are DEA-registered before the USDA grace period ends December 31.
- What product-compliance information banks may request from hemp customers, and how institutions update due diligence and monitoring.
How the new definition applies to a particular product can turn on specific facts.
Contact Us Now
Cogent Law's Cannabis and Hemp Law team works with hemp and cannabis businesses, and its Cannabis and Hemp Banking team works with banks and credit unions. Suehiko Ono focuses on cannabis and hemp law and corporate law and M&A, and Chris Van Dyck focuses on cannabis and hemp banking and financial regulatory compliance. To discuss how these changes may affect your business, contact Cogent Law or call 202-644-8880.
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Source
Congressional Research Service · October 28, 2026
Read the original sourceSource confidence: High · Verified
- P.L. 119-37, Div. B, § 781 (enacted Nov. 12, 2025), amending 7 U.S.C. § 1639o
- 7 U.S.C. § 1639o, as amended by P.L. 119-37 (Cornell LII)
- P.L. 119-103, Continuing Appropriations and Extensions Act, 2027, Div. B, § 2019 (approved Sept. 2, 2026)
- CRS Legal Sidebar LSB11496, "Delay in Changes to Hemp Definition: Cannabinoids Not Capable of Being Naturally Produced by the Cannabis Plant" (Oct. 28, 2026)
- CRS In Focus IF13136, "Changes to the Statutory Definition of Hemp and Implications for Agricultural Policy" (updated Sept. 28, 2026)
- CRS Insight IN12620, "Change to Federal Definition of Hemp and Implications for Federal Enforcement"
- USDA AMS: USDA Extends Enforcement Deadline for Hemp to be Tested by DEA-Registered Laboratories
- USDA AMS: Laboratory Testing Guidelines, U.S. Domestic Hemp Production Program
Legal Disclaimer
This article provides general information only. It is not legal advice, and reading it does not create an attorney-client relationship.



