Republican Congresswoman Nancy Mace of South Carolina has filed the first legislative attempt to overturn federal restrictions on intoxicating hemp products that President Donald Trump signed last week as part of a government funding deal. The "American Hemp Protection Act of 2025" seeks to repeal Section 781 of the continuing resolution before it takes effect on November 13, 2026.

Bill Targets Government Funding Provision

Mace filed draft legislation on November 17 that would simply repeal the federal government's hemp-related provisions included in the continuing resolution. The new federal definition prohibits cannabinoids synthesized or manufactured outside the plant—such as delta-8 THC and HHC—and limits hemp-derived cannabinoid products to 0.4 milligrams of total THC per container. Additionally, hemp must test below 0.3% total THC, including THCA, to be distinguished from federally illegal cannabis.

U.S. House Representatives Thomas Massie of Kentucky, Zoe Lofgren of California, and James Baird of Indiana have signed on as original co-sponsors for the bill, demonstrating bipartisan support for reversing the restrictions.

Industry Impact at Stake

While Mace voted in favor of the continuing resolution in last week's 222-209 House roll call to reopen the government, she went on congressional record on November 12 stating she "strongly" opposed Section 781 because it would "deal a fatal blow to American farmers supplying the regulated hemp industry and small businesses, and jeopardize tens of billions of dollars in economic activity."

Mace cited a 2023 Whitney Economics report estimating the U.S. hemp industry supports more than 320,000 jobs, generates $28.4 billion in regulated market activity, and provides roughly $1.5 billion in state tax revenues.

"Rather than have a substantive, open debate on the future of hemp policy in America, prohibitionists slipped this provision into a must-pass government funding bill, forcing members of Congress to choose between voting their conscience on hemp and paying our military servicemembers," Mace said. "This is wrong."

Regulatory Framework Debate

Senator Rand Paul of Kentucky and Representative Thomas Massie attempted to strip Section 781 from the final appropriations package, arguing that changing hemp's definition had nothing to do with funding the government and should have its own congressional debate.

According to Mace, the U.S. hemp industry has "stepped forward to self-regulate" in the absence of federal clarity following the 2018 Farm Bill, which federally legalized commercial hemp cultivation as an agricultural commodity. In the seven years since, as intoxicating hemp products have proliferated in smoke shops, gas stations, and grocery and liquor stores, many have argued separate definitions are needed for hemp plants in the field versus finished hemp products intended for human or animal consumption.

Many states have adopted hemp THC product regulations or bans aimed at preventing youth access to those under 21, while requiring consumer safety protocols related to packaging, labeling, and third-party testing.

Industry Seeks Regulation, Not Prohibition

Mace emphasized that many hemp businesses have been asking Congress to pass legislation that responsibly regulates their industry rather than imposing what she characterized as a national ban.

"Rather than adopt this common-sense regulatory framework to protect children and allow adults to make informed decisions, Section 781 of this bill essentially imposes a national ban of all ingestible hemp products with any 'quantifiable' level of tetrahydrocannabinol (THC), which represents between 90 and 95 percent of hemp products in the marketplace, including the vast majority of nonintoxicating cannabidiol (CBD) products," she said.

However, critics note that while Mace argued on the congressional record that Congress should have an open debate on hemp policy's future, the draft legislation she's circulating merely repeals Section 781 without offering a regulatory framework to debate.

One-Year Timeline for Action

Mace pledged to work throughout the year before the provision takes effect to reverse what she called "harmful language" and create a regulatory framework that "protects America's children, ensures product quality, and preserves access to products used by tens of millions of Americans."

"As the failed war on drugs has shown, provisions like this drive out responsible actors from the industry and embolden shady, black-market actors who care not for consumer safety or the protection of children," she said.

Quality Standards Critical Regardless of Outcome

Whether Congress repeals, modifies, or maintains the federal hemp restrictions, businesses in this sector face mounting pressure to demonstrate product safety through rigorous testing, transparent labeling, and verified quality controls. Third-party laboratory testing, accurate potency measurements, and comprehensive Certificate of Analysis documentation are becoming minimum requirements for market access. Qredible's Q-Trust platform helps hemp businesses implement the quality management systems, blockchain-secured documentation, and automated compliance monitoring that lawmakers, retailers, and consumers increasingly demand. Contact Qredible today to learn how our solutions can help your business demonstrate the product safety and quality standards that will be essential regardless of how federal hemp policy evolves.