Bipartisan Bill Would Establish Federal Regulatory Framework for Hemp-Derived THC Beverages
Need to Know
- The Beverage Regulatory Parity Act would create a federal regulatory framework for hemp-derived THC beverages, with oversight by FDA and TTB, and would establish a distribution system modeled on that used for alcoholic beverages
- Qualifying hemp-derived THC beverages could contain up to 5 mg of intoxicating THC per serving and would face food safety, manufacturing, testing, labeling, and age requirements
- The legislation comes ahead of an impending end-of-year deadline set in the FY 2026 appropriations bill that is expected to remove most currently marketed intoxicating, hemp-derived THC beverages from the legal market by the end of 2026 through the closure of a loophole created by the 2018 Farm Bill.
A bipartisan bill introduced in the U.S. House of Representatives would establish a federal regulatory framework for hemp-derived tetrahydrocannabinol (THC) beverages, carving qualifying products out of an impending prohibition on intoxicating hemp products and subjecting them to food safety, manufacturing, testing, labeling, age, distribution, and taxation requirements.
Introduced by Representatives Beth Van Duyne (Republican, Texas) and Greg Landsman (Democrat, Ohio), the Beverage Regulatory Parity Act would regulate hemp-derived THC beverages through the U.S. Food and Drug Administration (FDA) and the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB), while establishing a three-tier distribution system modeled on that used for alcoholic beverages.
‘Legal’ Hemp-Derived THC Loophole Set to Close
The legislation comes ahead of an impending deadline, which is expected to remove most currently marketed hemp-derived THC beverages from the legal market by the end of 2026 by closing a loophole created by the 2018 Farm Bill. Congress closed this loophole when it enacted the fiscal year (FY) 2026 appropriations bill in November 2025. The 2018 Farm Bill had enabled a market for intoxicating hemp products by legalizing products made using hemp with no more than 0.3 percent delta-9 tetrahydrocannabinol (THC) by dry weight.
The FY 2026 appropriations bill instead established a 0.4-milligram-per-container limit on total THC and prohibited certain synthetic or manufactured cannabinoids, with the restrictions set to take effect one year after enactment. The change is expected to affect most hemp-derived THC and cannabidiol (CBD) edibles and beverages currently on the market.
Some industry stakeholders, such as the National Restaurant Association (NRA), have urged Congress to postpone implementation of the restrictions while lawmakers develop national standards for low-dose hemp-derived THC beverages.
The Beverage Regulatory Parity Act represents one proposed approach to addressing the hemp-derived THC market before the new federal restrictions take effect by exempting compliant hemp-derived beverages from that per-container intoxicating cannabinoid limit.
Hemp-Derived Beverages Would Be Regulated as Food
Under the bill, hemp-derived beverages would be considered food and regulated by FDA under Chapter IV of the Federal Food, Drug, and Cosmetic Act (FD&C Act). A beverage containing a naturally occurring cannabinoid would not be considered adulterated solely because of that ingredient, provided it complied with the bill's cannabinoid stipulations and other requirements. FDA would also be directed to establish a process for recalling noncompliant hemp-derived beverages.
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The legislation defined a “hemp-derived beverage” as a nonalcoholic liquid beverage for human consumption containing one or more naturally occurring cannabinoids. Among other restrictions, qualifying beverages could contain no more than 5 milligrams (mg) of total intoxicating THC per serving and no more than 5 mg of non-THC naturally occurring cannabinoids. They could not contain synthetically derived cannabinoids or other compounds intended to mimic intoxicating substances. Hemp used as the cannabinoid source would have to be cultivated in the U.S., and final products would have to be packaged and labeled domestically.
The bill specifically included nonsynthetic delta-9 THC, CBD, and cannabigerol (CBG) within its definition of naturally occurring cannabinoids, alongside other molecules that regulators may determine qualify. Routine extraction and purification processes, including decarboxylation, filtration, distillation for purification, and winterization, would not by themselves cause a cannabinoid to be considered synthetically derived.
A hemp-derived beverage would be considered adulterated if it exceeded allowable cannabinoid levels; contained more than a trace amount of a cannabinoid that was not naturally occurring; or contained an added substance such as alcohol, caffeine, tobacco, nicotine, or melatonin that FDA determined could interact with cannabinoids in a way that is harmful to consumers. Products could also be deemed adulterated when facility operators delayed, denied, or limited an inspection.
Manufacturing, Testing, Labeling, and Distribution Requirements
TTB, in consultation with FDA and the U.S. Department of Health and Human Services (HHS), would oversee much of the new regulatory system.
The bill would require TTB to establish a three-tier distribution structure consisting of manufacturers, wholesalers, and retailers. Manufacturers could sell to wholesalers but not directly to retailers, while retailers would purchase products from wholesalers rather than manufacturers. A person could not hold permits or interests in more than one tier.
Manufacturers seeking permits would have to demonstrate compliance with requirements covering cannabinoid content, contaminants, key components, sourcing, uniform manufacturing and testing, laboratory sample submission, record retention, and facility inspections. Products that failed to meet uniform manufacturing and testing requirements would be considered misbranded under the FD&C Act.
Labels would have to disclose the number of servings and milligrams of each naturally occurring cannabinoid, along with warnings regarding risks to special populations, including children, pregnant people, and people taking medications. Labels would also have to address impairment, recommended consumption, expected onset of effects, the minimum age requirement, and the possibility of failing a marijuana drug test after consumption. Labeling designed to target or appeal to children would be prohibited.
The legislation would make it unlawful for retailers to sell hemp-derived beverages to anyone younger than 21, and for people younger than 21 to purchase, possess, or consume the products. States, localities, and Tribes could impose requirements stricter than the federal framework or prohibit hemp-derived beverages altogether.
The bill would also impose a federal excise tax of 8 cents per mg of intoxicating THC on hemp-derived beverages produced in the U.S.
FDA Would Study Testing, Impairment, and THC Serving Sizes
Within one year of enactment, HHS would be required to commission an FDA report on hemp-derived beverages in consultation with TTB, the National Highway Traffic Safety Administration, the National Institutes of Health, and the National Institute of Standards and Technology.
The report would make recommendations regarding appropriate product testing; methods for measuring and distinguishing impairment caused by hemp-derived beverages, including for driving; and serving sizes and appropriate quantities of delta-9 THC per serving. TTB could subsequently adjust serving and container sizes based on the findings.
