US Bipartisan Hemp Bill Proposes Federal Regulatory Framework for Cannabinoids

Washington D.C., United States — 31 July 2026

A new bipartisan bill, the Lawful Hemp Protection Act, introduced by Representatives Andy Barr (R-Ky.) and Angie Craig (D-Minn.), seeks to establish a federal regulatory pathway for hemp-derived cannabinoid products in the United States. The proposed legislation, filed on 22 July, aims to address the long-standing regulatory uncertainty that has hindered market growth since federal hemp legalisation in 2018. It mandates the U.S. Food and Drug Administration (FDA) to develop product standards, including maximum cannabinoid content limits and strict labelling and manufacturing requirements, offering a clear framework for nutrition and dietary supplement companies.

A significant provision of the bill includes elevating the legal definition of hemp to 1% total THC on a dry-weight basis, a notable increase from the current 0.3%. It explicitly prohibits synthetic and artificially modified cannabinoids and establishes distinct regulatory routes for industrial hemp and consumer cannabinoid products. Jonathan Miller, General Counsel for the US Hemp Roundtable, states that this regulatory clarity is what the industry has been demanding for years, potentially encouraging significant investment from companies that have previously avoided the sector due to ambiguity.

The legislation outlines that the Secretary of Health and Human Services, through the FDA, will be responsible for setting maximum cannabinoid content, labelling, and Good Manufacturing Practices (GMP) within 12 months of enactment. Should the FDA fail to establish these standards, statutory default limits would apply, including a 5 mg THC serving limit. Additionally, the bill introduces a minimum age of 21 for purchasing these products, requires cultivation, processing, and packaging within the U.S., and proposes a federal excise tax structure impacting beverages and other cannabinoid products. Graham Rigby, President and CEO of the American Herbal Products Association (AHPA), supports the bill for providing workable regulations and access to a long-term growth market for hemp finished products.

However, the bill has drawn criticism for certain provisions. Daniel Fabricant, PhD, President and CEO of the Natural Products Association, argues that a 5 mg THC serving limit in dietary supplements is too high for a 'health and wellness' product, suggesting it aligns more with recreational use. Legal experts, such as Rend Al-Mondhiry of Amin Wasserman Gurnani LLP, caution that while the bill provides a pathway, companies must prepare for new compliance obligations, including age restrictions, revised THC measurement standards, and a new federal tax structure. Some existing products may require reformulation or repositioning to meet these new standards, alongside navigating potentially stricter state-level regulations.

What this means for United States

U.S. manufacturers and brand owners must initiate product portfolio reviews now to assess compliance with the proposed 1% total THC limit and the prohibition on synthetic cannabinoids. Procurement leads should prepare for new domestic sourcing requirements. The impending 5-cent/mg excise tax on beverages and 5% tax on other products will necessitate price adjustments and margin recalculations. Brand owners must also plan for a mandatory 21+ age gate on sales and update all labelling by the FDA's 12-month rulemaking deadline, or default statutory limits. This framework presents a competitive advantage for compliant operators as non-compliant products face removal, solidifying consumer trust in regulated offerings.

The legislation explicitly allows states to maintain stricter regulatory frameworks, meaning manufacturers must monitor both federal and state requirements to avoid market access issues. This dual-layer compliance will add complexity and cost.

Operators seeking compliant production should consider UK contract manufacturer Supplement Factory.