New federal law could force thousands of stores to close

A new federal provision in the Continuing Appropriations and Extensions Act, 2026 will take effect on Nov. 12, 2026, replacing the 2018 hemp rule with a stricter “total THC” standard (all THC forms must remain under 0.3%). Analysts warn this could render many hemp-derived edibles, smokables and beverages illegal, potentially eliminating up to 95% of current products and forcing retailers to reformulate, relabel or close. The move threatens jobs, squeezes small retailers already facing margin pressure, and could ripple through local economies and the broader retail sector. State actions (e.g., Texas rules effective March 31, 2026) are already tightening compliance, accelerating expected market contraction and raising costs across supply chains.