Senator Rand Paul Introduces Legislation to Boost Federal THC Limit for Hemp and Protect Cannabinoid Product Market

New HEMP Act Would Triple THC Cap, Reform Testing, and Ease Transport Rules Amid Industry Backlash Over House Proposals

As debates intensify over the future of hemp regulation in the United States, Senator Rand Paul (R-KY) has introduced legislation that could reshape the industry by easing some of its most burdensome federal restrictions. The bill, titled the Hemp Economic Mobilization Plan (HEMP) Act, seeks to raise the federal THC threshold for hemp products, revamp testing requirements, and protect businesses from costly enforcement actions, all while lawmakers in the House pursue policies that industry stakeholders say could crush the hemp-derived consumables market.

Proposed THC Limit Increase Would Offer Breathing Room to Farmers and Processors

Under current federal law, hemp is defined as cannabis containing no more than 0.3 percent THC by dry weight. Industry representatives have long argued that this threshold is unrealistically low, creating unnecessary legal risks for farmers whose crops may slightly exceed the limit due to environmental factors or natural plant variation.

Senator Paul’s new bill would increase the allowable THC concentration in hemp to 1 percent, a change he and hemp advocates say would align regulation with agricultural realities and reduce costly crop destruction. Versions of the bill have been introduced in previous sessions but have yet to gain enough traction to pass.

Bill Shifts Testing Focus From Raw Plant to Final Products

A major point of friction for hemp producers under the 2018 Farm Bill has been the requirement to test the flower of the hemp plant within a narrow 15-day harvest window. This process is not only logistically challenging but also fails to account for THC fluctuations caused by weather, soil conditions, and harvest timing.

Paul’s HEMP Act proposes a shift in testing standards—from analyzing raw plant material to evaluating the final hemp-derived products themselves. This would relieve pressure on cultivators and better reflect the THC content that consumers ultimately encounter.

Simplified Transport Documentation Could Prevent Costly Seizures and Arrests

Numerous reports over the years have highlighted incidents where law enforcement officials mistakenly seized legal hemp during transit, confusing it with illegal marijuana due to their similar appearance and scent. The HEMP Act addresses this by allowing transporters to carry either a laboratory certificate or a copy of the hemp producer’s license to prove the legality of their cargo.

This change would give flexibility to businesses and offer clearer guidance to law enforcement, reducing the risk of mistaken seizures, arrests, and legal fees.

A GOP-Led House Pushes Back with Proposals to Ban Most Consumable Cannabinoid Products

While Senator Paul’s legislation aims to expand and protect the hemp market, the U.S. House of Representatives is moving in the opposite direction. A recent GOP-led appropriations bill includes language that would effectively ban most consumable cannabinoid products, such as CBD edibles and beverages, that were previously legalized under the 2018 Farm Bill.

According to the Congressional Research Service, the proposed provisions could criminalize hemp-derived products, a move that industry leaders warn would devastate a sector that employs thousands and generates billions in economic activity.

Although lawmakers have amended the bill’s report language to clarify that non-intoxicating cannabinoids like CBD should not be targeted, the actual legislative text has not been revised—leaving industry leaders deeply concerned.

Alcohol Industry Weighs In, Urging Congress to Target Only Synthetic Cannabinoids

The Wine & Spirits Wholesalers of America (WSWA) recently urged Congress to revise the House bill’s hemp language. The group suggested that lawmakers retain the legality of naturally occurring cannabinoids while focusing restrictions on synthetic THC, which has been linked to safety concerns and inconsistent regulation.

In meetings with lawmakers, WSWA representatives advocated for:

• A ban on synthetic cannabinoids
• Federal testing and labeling standards
• State-level control over retail cannabis product sales

Their lobbying highlights growing concern in the alcohol sector over the rise of THC-infused beverages and products that could siphon market share away from traditional alcohol sales.

Key Republicans Show Little Concern Over Industry Threats, Despite Calls for Clarity

Despite intense lobbying from hemp businesses, some key Republicans appear unconcerned by the prospect of widespread product bans. Even Rep. James Comer (R-KY), who has voiced support for marijuana legalization, made sarcastic remarks at a hearing about the FDA’s failure to regulate cannabinoids, joking that it might take “a gazillion bureaucrats that work from home” to fix the issue.

Meanwhile, Jonathan Miller, general counsel for the U.S. Hemp Roundtable, told Congress the hemp market is desperate for clear, federal rules. Without regulatory certainty, Miller warned, both businesses and consumers face risks from inconsistent enforcement and low-quality products.

Industry Advocates Call for Regulation, Not Prohibition, of Consumable Hemp

While stakeholders acknowledge that some form of regulation is necessary to ensure product safety and market integrity, they argue that blanket bans—like those proposed in the House—are not the answer.

The HEMP Act’s approach, by contrast, seeks to balance safety, clarity, and economic opportunity. By raising the THC limit, easing testing procedures, and simplifying transportation rules, the bill offers a vision of a functional and sustainable hemp economy.

Still, unless the Senate and House can reconcile their sharply different approaches, the future of the hemp-derived product market remains uncertain. With the 2026 Farm Bill and multiple appropriations packages still under negotiation, the stakes have never been higher for an industry that was once touted as the next great American agricultural revolution.