Indiana’s rapidly growing hemp industry faces new uncertainty after a provision in the bill that ended the recent 43-day federal government shutdown set a nationwide ban on most hemp-derived products beginning in November 2026. Photo from Salvador Rios, Unsplash.

News Release

INDIANAPOLIS — Indiana’s rapidly growing hemp industry faces new uncertainty after a provision in the bill that ended the recent 43-day federal government shutdown set a nationwide ban on most hemp-derived products beginning in November 2026.

The measure targets products containing more than 0.4 milligrams of total THC per container, closing a loophole created by the 2018 Farm Bill that allowed items made with delta-8 THC to be sold legally despite producing marijuana-like effects. The change threatens a sector that generated more than $1 billion in economic impact statewide in 2023, including an estimated $637 million in retail revenue tied largely to delta-8 sales.

Indiana retailers say the shift leaves them uncertain about enforcement and the future of their businesses. Many rely on delta-8 products rather than low-potency CBD oils that the 2018 law was originally intended to support.

Business owners estimate that most items currently on store shelves would no longer comply with the federal standard.

Legal ambiguity is not new for the industry, and advocates believe the yearlong runway could pressure lawmakers to adopt broader regulations. A proposal in the 2024 legislative session would have required testing, packaging rules and age limits for THC products, but it failed amid concerns from state officials that the effort resembled condoning marijuana.

Industry groups argue that the federal delay signals potential willingness in Washington to revisit the ban. Without state action, retailers warn that customers may increasingly travel to neighboring Michigan, where marijuana is legal, once the federal restrictions take effect.