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The Hemp Provision in H.R. 5371: What the Shutdown-Ending Bill Means for Hemp, CBD, and Cannabinoid Products

Congress quietly enacted one of the most sweeping federal cannabis and hemp restrictions in years—and it arrived tucked inside the same bill that ended the 43-day government shutdown. H.R. 5371, the legislation that restored funding for FDA and USDA, also rewrites the federal definition of hemp and effectively bans a large portion of hemp-derived cannabinoids currently on the market.

For companies manufacturing or selling CBD, delta-8, THCA, or other hemp-derived cannabinoid products, this is not a small policy update—it is a fundamental shift. This post breaks down what changed, why it matters, and what steps industry stakeholders should take immediately.

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What Changed: A New Federal Definition of Hemp

The 2018 Farm Bill defined hemp as Cannabis sativa L. and its derivatives containing ≤0.3% delta-9 THC on a dry-weight basis. H.R. 5371 replaces that framework with a stricter, more comprehensive definition.

Key changes in the new hemp language:

1. Total THC replaces delta-9 THC only

The new definition incorporates total THC—including delta-9 THC, THCA, and “similar-effect cannabinoids.”
This closes the loophole that allowed high-THCA products to test “low THC” before decarboxylation.

2. New restrictions on hemp-derived cannabinoid products

H.R. 5371 defines “hemp-derived cannabinoid products” for human or animal consumption (ingested, inhaled, or topical) and places severe limits on them.

3. A strict product-level THC cap: 0.4 mg per container

Not per serving.
Per container.
This makes almost all commercially available hemp-derived edibles, vapes, tinctures, and beverages non-compliant.

4. Ban on synthetic or non-naturally occurring cannabinoids

Cannabinoids manufactured or synthesized outside the plant—or determined by HHS as not naturally occurring—are prohibited.

5. Expected transition/grace period

Industry reports indicate a one-year transition, though formal federal guidance is still expected.

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Practical Impact: Up to 95% of Products May Be Non-Compliant

Early industry analysis suggests that up to 95% of existing hemp-derived consumable SKUs will be removed from the market under the new THC cap and total-THC calculation.

This includes:

• Delta-8 THC products
• THCA flower and concentrates
• Many CBD tinctures with trace THC
• Delta-10, HHC, THCP, and other analogs
• Most vapes, gummies, beverages, and edibles

For many businesses, H.R. 5371 does what the FDA has repeatedly declined to do directly: it draws a bright regulatory line that eliminates nearly the entire intoxicating-hemp market.

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Effect on FDA and USDA Regulatory Activity

Though the bill’s purpose was to restore funding, the hemp language also places new responsibilities on FDA and USDA:

FDA

• Gains authority to classify cannabinoids with “similar effect” to THC.
• Will likely issue compliance, enforcement, and testing guidance.
• May evaluate whether cannabinoids are natural-plant compounds or synthetic.
• Could increase enforcement on misbranded or non-compliant products entering interstate commerce.

USDA

• Must update the domestic hemp production program to reflect total THC.
• Will need to adjust testing protocols and sampling requirements.
• Will likely coordinate with states on updated hemp-production plans.

State regulators are already signaling that they will need to revise their programs—some may align closely with the federal standard, while others may challenge it.

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Compliance Risks for Hemp, CBD, and Cannabinoid Companies

Businesses should anticipate increased scrutiny from FDA, USDA, state regulators, and even DOJ/DEA once the new definition takes effect.

Key risks include:

• Product seizures or embargoes
• Recall or market-withdrawal actions
• State-level enforcement for products exceeding THC caps
• Private consumer litigation (misrepresentation, consumer protection claims)
• Supply-chain disruption for manufacturers relying on cannabinoids now restricted

Companies selling intoxicating hemp products or broad-spectrum CBD formulations with trace THC will face the most acute exposure.

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What Companies Should Do Now

To prepare for the new legal landscape, companies should take the following steps immediately:

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1. Conduct a full product audit

Evaluate:

• Total THC content per container
• Cannabinoid profile (delta-8, THCA, isomers, analogs)
• Whether any cannabinoids are synthesized or chemically modified
• Whether products meet the new federal definition of hemp

This should be documented and defensible.

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2. Reformulate or repackage where possible

Some product categories may survive with:

• Lower THC concentrations
• Smaller container sizes
• Reformulated cannabinoid profiles

But many intoxicating products will not be salvageable.

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3. Review state licensing and distribution agreements

States with permissive hemp-derived THC markets (e.g., delta-8 frameworks) may quickly diverge from federal requirements—or may be forced into compliance. Contracts should be updated accordingly.

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4. Update labeling, testing, and COA controls

Expect future FDA and USDA guidance to require:

• Total THC calculations
• Expanded cannabinoid panel testing
• Clear labeling to avoid misbranding

Capture your compliance position now in writing.

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5. Build a transition-year strategy

If the expected one-year grace period is confirmed:

• Plan a phased withdrawal or reformulation schedule
• Prepare consumer communications
• Coordinate with retailers and distributors
• Adjust revenue forecasts

For some businesses, this will require a full pivot.

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Looking Ahead: An Industry Redefined

The hemp provision in H.R. 5371 is not a technical correction.
It is a structural overhaul that reshapes the U.S. hemp and cannabinoid marketplace. The primary outcome is clear:

Congress has effectively ended the national intoxicating-hemp market and dramatically narrowed the lawful CBD product landscape.

As FDA and USDA begin implementing the new definitions and THC limits, companies should expect additional guidance, enforcement, and state-level adjustments throughout 2026.

If your business needs a tailored compliance roadmap, product-portfolio audit, or labeling and regulatory strategy under the new rule, FDA Atty can help guide you through the transition.