The sweeping government funding bill signed by President Trump on Wednesday includes a provision that could dramatically reshape the hemp industry and the local businesses that rely on it.

The measure closes the so-called “hemp loophole” created by the 2018 Farm Bill, which allowed hemp products with less than 0.3% delta THC to be sold legally.

That loophole gave rise to a booming market for intoxicating hemp-derived cannabinoids, like delta-8 THC, THCA, and others.

The new law bans any cannabinoids not naturally produced by the plant, including synthetic or chemically converted cannabinoids.

Gas stations, convenience stores, and small businesses have been major players in the hemp-derived THC market, often selling gummies, vape cartridges, and other products that skirted marijuana laws.

Industry analysts estimate that hemp-derived THC products represent a $13-$28 billion market nationwide, indicating that the law could wipe out 95% of products currently on the market.

CBD products and industrial hemp uses, such as fiber and grain, remain legal.

Enforcement begins in late 2026, giving businesses about a year to comply.

The law also demands that consumer hemp products must contain no more than 0.4 milligrams of total THC per container, but does not ban state-legal marijuana.

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