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The White House has signalled a significant shift in federal hemp policy, urging Congress to replace a proposed ban on hemp-derived cannabinoid products with a comprehensive regulatory framework that would preserve consumer access while strengthening product safety standards.

The recommendation was included in the Administration’s $87.6 billion supplemental funding request to Congress, which is primarily focused on national security, public health and agricultural support.

Alongside $11.1 billion in assistance for American farmers, including $10 billion in temporary economic relief for crop producers and $1.1 billion for Florida agricultural recovery following severe winter storms, the proposal also addresses the future regulation of hemp-derived products.

Historically, there have been contradictory regulations on THC and hemp-derived products. In the US specifically, it is particularly fragmented, while legal in some states, THC products cannot cross state lines, unlike hemp-derived products, which consistently face federal restrictions across the country, with individual states interpreting the rules differently.

The Administration is seeking legislative authority to revise federal hemp regulations to ensure the fair treatment of hemp products in line with Amendment 54 to H.R. 8646, bipartisan legislation championed by Congressman Andy Barr.

At a minimum, the White House is requesting an extension of the current moratorium delaying implementation of Section 781 of Public Law 119-37, which is due to expire in November.

According to the funding request, the proposed changes would update the statutory definition of final hemp-derived cannabinoid products, allowing consumers continued access to appropriate full-spectrum CBD products while maintaining Congress’s intention to restrict products considered to pose significant health risks.

The move is being viewed as a notable endorsement of a regulated marketplace rather than an outright ban of hemp-derived cannabinoids.

Across the industry, stakeholders have long argued that a clear federal regulatory framework would provide greater certainty for manufacturers, retailers and consumers while establishing consistent quality standards and safety across the market.

The US Hemp Roundtable welcomed the Administration’s position, describing it as an important step forward.

In a statement, Jonathan Miller, general counsel of the US Hemp Roundtable, said: “We are excited that the President take such a strong public stance in favour of replacing the hemp ban with a strong regulatory framework, or at minimum, securing an extension of the hemp ban moratorium to give Congress more time to develop regulations.”

Miller continued: "This is an important step in honouring Congress' promise to help farmers and consumers."

The White House’s proposal now places hemp regulation firmly before lawmakers as Congress considers the supplemental appropriations package in the coming days

For the food and beverage sector, the outcome of Congressional negotiations could prove pivotal across the industry. A federal regulatory framework for hemp-derived cannabinoids has long been sought by producers seeking greater legal clarity around formulation, labelling, interstate commerce and consumer confidence.