A major bill passed both the US Senate and House this week and was signed by President Trump late last night as part of efforts to reopen the federal government. Section 759 contained in this bill proposes a ban on intoxicating hemp beverages, effective 365 days from executive signing.
The businesses Cask works with, like us, support meaningful federal regulation and clear safety standards for hemp-derived drinks. There is a real path to federal regulation in the 365 day grace period. What our industry, retailers, distributors and investors need to hear is: next week is business as usual.
US Hemp-Derived Beverage Update
What Happened
The Senate and House passed a government funding "minibus" that includes Section 759, which federally restricts the sale of intoxicating hemp products. The provision targets products sold outside highly regulated cannabis-derived channels, limiting hemp-derived products to no more than 0.4 mg total THC per consumer package. It is a drastic limit that would outlaw many current delta-8/delta-9 hemp drinks on the market.
Why It Happened
The federal government had been shut down since October 1. On November 9, the Senate approved an omnibus appropriations bill to reopen the government, incorporating Section 759. An emergency amendment introduced by Senator Rand Paul to remove the hemp ban from the appropriations bill was struck down. The House passed the bill on November 12 without amendments in order to expedite reopening the government.
What Happens Next
The bill was signed into executive order November 13, triggering a 365 day grace period for implementation. During this time there are no changes to the current rules or regulations around hemp-derived beverages.
What's Most Important Now
Industry organizations and advocacy groups, including the Hemp Beverage Alliance, are working intensely to provide federal regulatory guidance ahead of the 365 grace period.
Federal regulation is on the horizon
Hemp is front and center in Congress. What matters most in the next 365 days grace period is meaningful legislation for Federal regulation is proposed and begun a legislative process. On a hot button law and order topic, federal regulation around hemp is in the beverage industry's favor. There is also possibility of the 365 day grace period to extend. If legislators are actively working on a bill that is making its way through a legislative process, it is far more likely for any hemp ban to be extended.
Key Differences Of 2018 Farm Bill & 2025 Section 759
The 2018 Farm Bill defines legal hemp as any part of the Cannabis sativa plant with a delta-9 THC concentration of not more than 0.3% on a dry weight basis. This rule applies to bulk plant material, extracts, and the regulatory THC threshold for products at the farm and processing level.
The 2025 appropriations bill passed by Congress this week (Section 759) proposes a stricter retail rule for hemp-derived products limiting total THC (including delta-8, delta-9, etc.) in finished consumer packages to 0.4 mg per container. This is a much lower absolute cap than the previous 0.3% by dry weight standard, especially for beverages.
| 2018 Farm Bill (Current Law) | Section 759 Appropriations (Proposed) |
| ≤0.3% delta-9 THC by dry weight (plant/product) | ≤0.4 mg total THC per consumable container (all isomers) |
| Applies to cultivation and processing | Applies to retail product sales |
| Only delta-9 THC counted | All THC isomers included (delta-8, delta-9, etc) |
| Allows products with up to about 3 mg THC in a 12 oz beverage (if below 0.3% by weight) | Would ban most hemp beverages over 0.4 mg THC total per container |
For full regulatory overview visit the USDA website.
Reach out to Cask if you want to learn more, or there are ways we can help.
