Congress passes shutdown bill with 0.4 mg hemp‑THC cap; 1‑year phase‑in alarms MN beverage industry
Congress has passed a stopgap funding bill that includes a national cap of 0.4 mg hemp‑derived THC per container, taking effect in one year and overriding higher state per‑serving limits (Minnesota currently allows ~5 mg), a measure pushed to close a 2018 Farm Bill looph and intended to block unregulated intoxicating hemp products. Minnesota brewers, retailers and hemp beverage makers warn the cap would effectively ban most THC edibles and drinks and devastate a roughly $140–200 million local market — though regulators say licensing and oversight remain unchanged until the cap’s effective date and industry groups urge business as usual in the interim.
📌 Key Facts
- Congress has passed a stopgap spending bill that includes a national cap of 0.4 mg of hemp‑derived THC per container; the cap becomes effective one year after enactment.
- The hemp restriction was added to the Agriculture appropriations section of the shutdown‑ending bill—in effect hitching the THC cap to the stopgap to reopen the government.
- Sponsors say the provision targets unregulated intoxicating hemp‑derived products (including delta‑8) while preserving non‑intoxicating CBD and industrial hemp; the FDA has warned that delta‑8 products are not evaluated or approved for safe use.
- Senate Appropriations Chair Susan Collins’ summary and floor action show the measure was advanced with Senate support (Senate action included setting aside Sen. Rand Paul’s amendment by a 76–24 vote); Sen. Mitch McConnell championed the provision, while Sen. Rand Paul and others opposed it as harmful to hemp farmers and small businesses.
- The federal cap will override higher state per‑serving limits (Minnesota is among states with a 5 mg per‑serving limit), creating a one‑year phase‑in that has alarmed state beverage and edible producers.
- Estimates of Minnesota’s hemp market vary (roughly $140 million to $200 million in 2025) with tens of millions in state revenue and retail distribution that has included mainstream outlets such as Target liquor stores.
- Local producers and retailers warn the 0.4 mg per‑container cap would effectively ban most current hemp intoxicant edibles and beverages and could shut down the state market; industry voices include Indeed Brewing’s chief business officer calling the cap 'catastrophic,' Surly Brewing citing THC beverages as key to hiring growth, and smaller producers/retailers warning of major business impacts.
- Regulators and industry groups advise there will be no immediate change to licensing or sales practices during the interim: the Minnesota Office of Cannabis Management says licensing/oversight of THC beverages continues unchanged, and the Hemp Beverage Alliance CEO has told members to expect 'business as usual' until the federal cap takes effect.
📰 Sources (5)
In the wake of surprise federal THC ban, local breweries and beverage producers face an unknown future
New information:
- Congress has now passed the shutdown bill containing a national 0.4 mg per‑container cap on hemp‑derived THC; the cap takes effect in one year.
- Minnesota Office of Cannabis Management says licensing/oversight of THC beverages continues unchanged during the interim.
- Local producers (Bauhaus Brew Labs) and retailers (Dabbler Depot) warn the cap would effectively shut down Minnesota’s THC beverage/edible market; Surly Brewing cites THC beverages as a lifeline that expanded employment at a facility from 8 to 30.
- Hemp Beverage Alliance CEO: 'business as usual' until the effective date; consumers should expect no immediate change.
Government shutdown deal poised to deliver devastating blow to Minnesota's hemp industry
New information:
- FOX 9 cites Minnesota’s hemp industry at roughly $200 million in 2025 with tens of millions in state revenue.
- Local industry reaction: Indeed Brewing’s chief business officer Ryan Bandy calls the cap 'catastrophic' for breweries, wholesalers and retailers.
- Adds explicit opposition from Sen. Rand Paul, who sought to remove the hemp provision, warning of harm to hemp farmers and small businesses.
- Reiterates Senate passage on Monday and frames House passage expected Wednesday.
Hemp ban in federal funding bill could end Minnesota’s THC edibles and drinks industry
New information:
- U.S. Senate voted 76–24 to set aside Sen. Rand Paul’s amendment, advancing the hemp THC cap as part of the shutdown-ending spending bill.
- Provision would cap THC at 0.4 mg per container, effectively banning intoxicating hemp edibles/drinks; takes effect in one year.
- Estimated Minnesota market size cited at roughly $140 million, with distribution including Target liquor stores.
- Provision championed by Sen. Mitch McConnell; 39 state attorneys general (including MN AG Keith Ellison) urged Congress to close the 2018 Farm Bill 'loophole.'
- House could vote as soon as Wednesday.
Hemp growers, retailers targeted in section of government shutdown legislation
New information:
- The hemp restriction is embedded in the Agriculture appropriations bill that is hitching a ride on the stopgap to reopen the government; a House vote could come as soon as Wednesday.
- Senate Appropriations Chair Susan Collins’ staff summary says the provision aims to block unregulated intoxicating hemp-derived products (including delta‑8) in online and convenience retail while preserving non‑intoxicating CBD and industrial hemp.
- Direct quotes from Sen. Mitch McConnell (closing a 2018 Farm Bill loophole; one-year delay) and Sen. Rand Paul (the cap would effectively ban nearly all current products and ‘regulate the industry to death’).
- The article cites an FDA warning page noting delta‑8 THC products are not evaluated or approved for safe use.
- Explicit note that the federal cap would override higher state per‑serving limits, listing Minnesota among states with 5 mg limits.