Bipartisan Bill Exempts Hemp THC Drinks From Federal Ban

The Hemp Beverage Carve-Out

The new bill would exempt hemp THC drinks from the federal ban while subjecting them to Alcohol and Tobacco Tax and Trade Bureau (TTB) oversight. Under the proposal, hemp beverages containing delta-8 THC, delta-9 THC, or other intoxicating cannabinoids would remain federally legal provided they meet labeling, potency, and age-verification standards modeled on alcohol regulation.

The legislation doesn't name a specific potency cap. But congressional aides familiar with the draft told CannIntel the bill contemplates a 10mg THC per serving ceiling and mandatory batch testing through ISO-certified labs. Beverages exceeding that threshold would fall under the broader hemp ban.

Timeline and Legislative Context

The filing comes six days after the Senate voted 68-29 to push the hemp recriminalization effective date from September 15, 2026, to March 1, 2027. That delay, attached as a rider to the FY2027 Agriculture Appropriations Act, gives Congress a 5.5-month window to pass permanent hemp reforms before the original 2018 Farm Bill language sunsets and all intoxicating hemp products revert to Schedule I status under 21 U.S.C. § 812.

The beverage carve-out represents the first concrete legislative proposal to emerge during the extension period. Two competing bills are expected before the August recess ends, according to Capitol Hill sources—one from Senate Agriculture Committee leadership and another from the Congressional Cannabis Caucus.

The alcohol-style regulatory model reflects industry lobbying from Molson Coors, Pabst, and Lagunitas, all of which launched hemp THC drink lines in 2024-2025 and have pressed Congress to avoid a blanket ban.

Regulatory Mechanics

The bill assigns enforcement authority to TTB rather than FDA or DEA, mirroring the three-tier distribution system used for beer, wine, and spirits. Manufacturers would be required to register with TTB, pay a federal excise tax (the bill doesn't specify a rate), and comply with state-by-state distribution laws where hemp beverages are legal.

States would retain the right to ban or further restrict hemp drinks within their borders. Fourteen states—including New York, Minnesota, and Oregon—already regulate hemp beverages under state alcohol or cannabis frameworks. The federal carve-out wouldn't preempt stricter state rules.

What's at Stake

The hemp beverage sector generated an estimated $2.1 billion in retail sales in 2025, according to data from BDSA and the Hemp Beverage Alliance. That figure represents roughly 7.5% of the total hemp-derived cannabinoid market. Without a legislative fix, those sales would halt on March 1, 2027, when the recriminalization takes effect.

The broader hemp industry remains in limbo. Edibles, vapes, tinctures, and topicals aren't covered. The beverage-only carve-out doesn't address delta-8 gummies, THCA flower, or other high-volume product categories that account for the majority of hemp-derived THC revenue. Industry groups including the U.S. Hemp Roundtable have lobbied for a comprehensive framework rather than a piecemeal approach, but congressional appetite for a broader bill remains unclear.

For full background on the federal hemp debate, see the CannIntel topic hub on Federal Hemp THC Regulation.

Next up: House Agriculture Committee markup, expected in mid-September when Congress returns from recess. If the beverage bill advances, it'll likely be folded into a larger hemp reform package before floor consideration.