HEMP Act of 2025

The Hemp Economic Mobilization Plan Act of 2025 (HEMP Act) would raise the federal definition of hemp from a delta-9 THC cap of 0.3% to 1% on a dry-weight basis and expand the regulatory framework around transport of hemp and hemp-derived products. Specifically, the bill allows hemp to contain up to 1% delta-9 THC and requires new documentation for shipments—either licenses/authorizations from state or tribal authorities or certificates from a laboratory showing delta-9 THC at or below 1% (dry weight). It also adds a quantified testing standard (uncertainty not greater than 0.075%) and preserves enforceable transport record-keeping requirements. In addition, the bill directs the Secretary of Agriculture to update regulations (CFR Part 990) within 90 days to reflect these changes. The overall aim is to broaden the legal hemp market and streamline interstate commerce while maintaining traceability and testing controls. The practical impact could be a broader market for hemp and hemp-derived products (including those closer to the old 1% threshold) with clearer documentation requirements to prove compliance during transport. Producers, processors, distributors, and testing laboratories would see new compliance obligations, and state/tribal agricultural authorities would have expanded roles in licensing and oversight. Regulators would need to adjust federal rules promptly to align with the higher threshold and the new transport documentation regime.