U.S. Congressman Andy Barr (R-KY) introduced a long-awaited hemp legalization bill today, seeking to create a comprehensive regulatory framework for hemp-derived consumer products ahead of the looming November ban.
The Lawful Hemp Protection Act is a bipartisan bill which, if passed, would establish a “clear federal framework for the hemp industry by setting consistent standards for cultivation, manufacturing, testing, and labeling,” while simultaneously banning “synthetic cannabinoids” from use in finished hemp consumables, Barr’s office stated today.
“Kentucky farmers helped build America’s hemp industry and they deserve certainty,” Barr said in a release. “The Lawful Hemp Protection Act protects Kentucky agriculture, safeguards consumers, and establishes a commonsense regulatory framework that allows this important industry to continue to grow while ensuring products are safe and kept out of the hands of children.”
“Minnesota became the model for responsible hemp regulation when it established a regulatory framework that complied with federal law and enabled local farmers and businesses to thrive,” added Rep. Angie Craig (D-MN), who is the lead Democrat on the House Agriculture Committee and a co-sponsor of the bill. “My commonsense legislation will give regulatory clarity to Minnesota farmers, brewers and small business owners and provide an alternative to short-sighted federal policies that threaten Minnesota jobs and consumer choice.”
The bill is backed by numerous hemp industry groups, including the Coalition for Adult Beverage Alternatives (CABA), the Hemp Beverage Alliance (HBA), American Healthy Alternatives Association, the U.S. Hemp Roundtable and the Wine and Spirits Wholesalers Association, among others.
Liquor retail chain Total Wine & More, which has been bullish in embracing the hemp-derived beverage category, was also named as a supporter.
“Reps. Craig and Barr understand that this isn’t a partisan issue – it’s about protecting farmers who planted in good faith, small business owners who built legal companies, and consumers who deserve safe, tested, legal products instead of being pushed into an unregulated market,” said Hemp Industry & Farmers of America executive director Brian Swensen in the release. “We appreciate all the hard work that brought us to this point. This bill is a strong step toward establishing a proper regulatory framework.”
What’s In the Bill?
If passed, the Lawful Hemp Protection Act would create a unified federal framework for the legal sale and production of intoxicating hemp-derived food and beverage products.
The bill would create separate regulatory categories for industrial and consumable hemp products, and adjust the legal limitation of hemp to 1% total THC concentration on a dry-weight basis.
Synthetic cannabinoids would be prohibited under the proposed law and standards for finished product testing would be implemented.
Consumable hemp products would be required to be “cultivated, processed, finished, and packaged in the United States.”
The bill would also create a proper age-gate for purchase, restricting sales to individuals 21 years of age or older, along with standardizing packaging, labeling and marketing to prevent products from appealing to youth.
The Food and Drug Administration (FDA) would be directed to establish a maximum cannabinoid content limit for hemp-derived consumables, while introducing a “fallback” limit in case the FDA does not act within 12 months from the bill’s passage.
The Secretary of the Treasury would also be instructed to establish a three-tiered system for hemp-derived beverages, akin to alcohol distribution, “with strict tied-house restrictions to maintain separation among tiers,” Barr’s office stated, while the Treasury Department will be instructed to collect a tax of 5 cents per milligram of THC in beverages and 5% of the retail price on all other THC consumables.
Where To From Here?
Introduction of the bill is only the first step, and even if it passes the House, it will still face additional scrutiny in the Senate.
However, the bill marks a major first step towards establishing a solution for the hemp industry prior to the November 12 deadline.
Sales of the hemp beverage category grew 133% year-over-year between 2024 and 2025, according to a report by the HBA this month, with founder and president Christopher Lackner telling BevNET last week that the industry is hopeful the positive economic growth of the category will help motivate Congress to pass legislation.
The bill bears many similarities to another proposed legal framework for hemp, the Goodness of Hemp Act, crafted by the Goodness of Hemp Coalition, though differs in some areas such as taxation models; that bill proposes a federal excise tax of $0.03 per milligram of intoxicating cannabinoid per product.
Industry Reacts
In a statement sent to BevNET, Nowadays co-founder and CEO Justin Tidwell called the bill encouraging for the industry.
“We’re encouraged to see the introduction of the bipartisan Craig-Barr legislation, which would create a comprehensive federal regulatory pathway for hemp-derived THC beverages like Nowadays to continue operating through the traditional three-tier alcohol system, while establishing common-sense safeguards such as age restrictions, product testing, labeling requirements and manufacturing standards,” he said.
“This is an important step toward creating a responsible, federally regulated marketplace that prioritizes consumer safety while preserving consumer choice. We’re proud to have worked alongside members of Congress and industry stakeholders to help advance this conversation. We’ve long believed THC beverages should be regulated, not prohibited and this bill represents meaningful momentum toward a durable, long-term framework for the category.”
Cory Harris, lobbyist for the American Trade Association for Cannabis and Hemp, however, was critical of the bill, claiming it does not adequately address synthetic cannabinoids.
“Congress overwhelmingly voted in November to close the loophole that allowed synthetic THC products to proliferate across the nation, often without regulation and available to minors,” Harris said in a statement to media. “Unfortunately, Rep. Barr is trying to reopen the matter with a proposal that would protect synthetic drugs, so long as they’re derived from hemp. Congress doesn’t want to legalize knock-off marijuana and synthetic THC, and that’s exactly what Rep. Barr’s new bill would do.”