The 2022 omnibus spending bill directed the U.S. Food and Drug Administration (FDA) to regulate cannabidiol (CBD) and the Department of Agriculture (USDA) to study the possibility of increasing the THC limit in hemp from 0.3%. The new legislation adds hope to the whole cannabis industry, particularly producers and businesses, as they look for legal clarity and institutional banking.
The legislation also sets aside funding to support the industrial hemp sector and authorizes the Financial Conduct Authority to make loans accessible to hemp producers and businesses. Partner bill, H.R. 6645 is the Hemp Advancement Act of 2022, and it specifically requested the allowable THC level to be increased to not more than 1%. The bill seeks to promote the production of hemp and hemp products, and for other purposes.