Federal THC Ban Forces Minnesota Businesses to Scale Back
Minnesota businesses are cutting production and shifting to cash payments as a federal law limiting hemp-derived THC takes effect on December 11.
A federal law limiting hemp-derived THC content to 0.4 milligrams per container is set to take effect on December 11, 2026. The legislation, originally introduced by Senator Mitch McConnell, creates a sharp conflict with state laws in places like Minnesota, where current limits allow up to 10 milligrams for edibles and drinks.
Donald Trump has called on Congress to update the law to maintain access to full-spectrum CBD products while restricting health risks. Other lawmakers, including Senator Rand Paul and Representative Morgan Griffith, are seeking extensions or a new regulatory framework. Conversely, Senator Andy Harris continues to lead the push for prohibition, supported by lobbyists from major alcohol companies including Anheuser-Busch, Molson Coors, and Diageo.
In Minnesota, the impending deadline has already disrupted commerce. Payment processor Square has notified sellers it will no longer process THC-related transactions, prompting businesses like Northern Coffeeworks and Indeed Brewing to remove products from view or shift to cash-only sales. Some companies, including Junkyard Brewing Company and MinnyGrown, have ceased production entirely. The U.S. Hemp Roundtable warns the ban could eliminate 95% of these products and devastate a national market valued at $38 billion.
