Hemp Ban Legislation Update
New federal legislation could be disastrous for Vermont hemp farmers
Hey there, neighbor!
We’ve got an important update about the anti-hemp language in the recently passed government spending bill. We’re going pretty in-depth here, but if you want a quick summary, check out our Key Takeaways section down below.
We want to start this post by saying: Sunset Lake CBD isn’t going anywhere. Even though this new legislation will negatively impact our business and prevent us from selling many of the wellness products that you’ve come to love, we plan to regroup, reformulate, and remain your source of high-quality CBD products.
Key Takeaways:
As part of the larger omnibus spending bill (that ended the government shutdown), the Agricultural Appropriations Act for Fiscal Year 2026 contains language that redefines hemp and effectively bans hemp-derived THC products.
Hemp and CBD products defined in the 2018 Farm Bill could contain up to 0.3% delta-9 THC on a weighted basis. According to the updated definition, hemp and CBD products can now only contain up to 0.3% total THC on a weighted basis, OR 0.4mg of THC per container, whichever is less. This definition effectively bans full-spectrum CBD products.
This new hemp definition also prohibits any cannabinoids that are synthesized or manufactured outside of the hemp plant. While we don’t know which cannabinoids fall under this umbrella just yet, the FDA has 90 days to provide a list of banned cannabinoids.
What Happened?
On November 13th, 2025, Congress passed, and the President signed the appropriations bill that ended the longest government shutdown in history. This bill was an “omnibus” spending bill, named as such for its inclusion of several unrelated bills wrapped into one large legislative package.
One such bill, the Agricultural Appropriations Act for Fiscal Year 2026, included language inserted by Senator Mitch McConnell (R-KY) and Representative Andy Harris (R-MD) that takes aim at the hemp industry. Not only does this language redefine what hemp is, but it also places severe regulations on both intoxicating and non-intoxicating CBD products.
Put simply, this new definition of hemp and hemp-derived CBD products effectively bans anything that contains any trace amount of THC.
Hemp is redefined as Cannabis sativa L. plants with a total concentration of THC (including THCA) of “not more than 0.3 percent on a dry-weight basis.”
A hemp-derived cannabinoid product is now defined as a product containing cannabinoids derived from compliant hemp plants and containing no more than 0.3% total THC on a dry-weight basis and/or more than 0.4mg of THC per container.
A container is defined as the innermost wrapping, packaging, or vessel in direct contact with a final hemp-derived cannabinoid product.
Although Senator McConnell has said that this language is meant to restrict intoxicating hemp products, it goes much further than that and effectively bans all full-spectrum hemp products, both intoxicating and not.
Additionally, the bill in question mandates that the FDA, in consultation with other federal agencies, publish a list of approved cannabinoids that are naturally produced by Cannabis sativa L. (hemp) plants. Based on this language, we believe that all lab-synthesized cannabinoids and THC analogs (delta-8, delta-10, etc.) will be banned outright.
Our Thoughts
We think these new restrictions will be deeply destructive, not only to the thousands of farms and small businesses selling hemp and CBD products, but to the millions of Americans who rely on them.
We support regulations that prohibit synthetic hemp products and promote naturally derived full-spectrum CBD products. We support regulations that prevent hemp products from being purchased by children. We support regulations that introduce uniform testing standards so every company is held to high standards we uphold here at Sunset Lake. Unfortunately, this new law accomplishes none of these much-needed reforms.
If history has taught us anything, it’s that prohibition isn’t the answer. We believe that our full-spectrum products are great wellness aids. We also believe that intoxicating hemp-derived products have their time and place and should be regulated, not banned altogether.
What Does This Mean for Sunset Lake CBD?
This new language affects many of your favorite Sunset Lake CBD products. Under this new guidance, our full-spectrum CBD products are out of compliance.
For now, we’re going to keep selling our full lineup of hemp products as these new regulations won’t take effect until November 12th, 2026. Once the dust settles and we have further guidance from the FDA, we’ll be working on new complaint products.
During the one-year runways, we’re also going to work diligently with our federal congressional delegation to revisit these regulations and work on carve-outs for non-intoxicating full-spectrum CBD products.
Regardless of how this next year shakes out, we aren’t going anywhere. We already carry some CBD isolate and broad-spectrum products that shouldn’t be affected by these new definitions.
What Next?
Our roadmap for the next year has taken some twists and turns in the past few weeks. We will continue to sell our CBD oil tinctures, full-spectrum edible products, and smokable hemp products through the next 12 months.
However, as we approach next November, we plan on running down our stock of full-spectrum products. If you have a subscription to any full-spectrum products through our CBD website, you may see it end due to availability. We apologize for the inconvenience and appreciate your understanding as we navigate this uncertainty.
Unfortunately, we will not be brewing any more batches of Sunset Lake CBD Lifted Tea. We had plans to scale up this product, make it profitable, and turn it into a staple of our lineup. But as it stands, we need to stop production and instead invest in new compliant products.
All of that said, we’re sticking around and want to continue being your hemp farm of choice. If you have any questions or comments for us, please get in touch via our contact page, and we will email you back as soon as I can.
All the best,
The Sunset Lake Team
