Other Issues
Regulation of Products Containing CBD Derived from Hemp • SNAP • FSMA Traceability Rule
Regulation of Products Containing Cannabadiol (CBD) Derived from Hemp
BACKGROUND: Hemp-derived ingredients are found in products including food, beverages, dietary supplements and cosmetics.
The 2018 Farm Bill excluded hemp containing less than 0.3% THC from the definition of marijuana under the Controlled Substances Act. This alleviates many of the DEA-related concerns regarding hemp-derived ingredients but does not provide much-needed clarity around the legality and regulation of products containing CBD. The federal prohibition on the sale of food or beverages containing CBD remains in effect, and state regulatory schemes vary widely.
Former FDA Commissioner Dr. Stephen Hahn made no public comments during his tenure at the agency. In 2019, the agency created a CBD Task Force, and in February 2023, the agency announced that "after careful review, the FDA has concluded that a new regulatory pathway for CBD is needed that balances individuals’ desire for access to CBD products with the regulatory oversight needed to manage risks. The agency is prepared to work with Congress on this matter. Today, [the agency is] also denying three citizen petitions that had asked the agency to conduct rulemaking to allow the marketing of CBD products as dietary supplements.”
CDA has been very active on issues related to hemp-derived CBD and will continue to look for opportunities to engage on issues related to hemp-derived through the next Farm Bill and separate actions that may arise in the House of Representatives and Senate.
STATUS: The Senate Committee on Appropriations approved the Fiscal Year (FY) 2026 Agriculture, Rural Development, Food and Drug Administration (FDA), and Related Agencies Appropriations on July 10, by a unanimous vote of 27-0. Included in the bill are provisions closing the “hemp loophole” and potentially ending the availability of most hemp-derived products. Language in the bill creates distinct definitions for “industrial hemp” and “hemp-derived cannabinoid products” and would ban hemp-derived cannabinoid (CBD) products containing synthetic compounds and/or quantifiable amounts of THC or THCA—or other cannabinoids that have similar effects on humans or animals. A manager’s amendment, written by Senator Mitch McConnell (R-KY) and Senator Jeff Merkley (D-OR), would delay the ban by one year.
FOR MORE INFORMATION:
Supplemental Nutrition Assistance Program (SNAP)
BACKGROUND: The Supplemental Nutrition Assistance Program, or SNAP, is a food assistance program giving millions of low-income Americans access to food across all retail channels, including small format stores and convenience stores. Convenience stores provide critical access to food for many SNAP beneficiaries who may live in “food deserts” with limited access to larger food retailers.
STATUS: President Trump signed H.R. 1, the “One Big Beautiful Bill Act” (OBBBA) on July 4, 2025. Included in the bill were provisions including restricting who can receive benefits, changes to work requirements, how states can be exempted from those requirements, and how household income and expenses are determined, all of which can take effect immediately Additionally, the final law limits future updates to the Thrifty Food Plan, which is the calculation used to define the value of groceries for SNAP participants, and requires states to cover more of the administrative costs in a new cost-share calculation.
SNAP is authorized through the Farm Bill, the legislative package considered every five years to fund hunger, nutrition and farm programs. The current Farm Bill (P.L. 115-334) was extended and both the House and Senate Committees on Agriculture are continuing their work on a new Farm Bill. CDA will continue to monitor progress on that bill.
FDA Food Safety Modernization Act Traceability Rule
The Traceability Rule fulfills the mandate outlined in Section 204 of the FDA Food Safety Modernization Act (FSMA) requiring FDA to develop a system for enhanced traceability of high-risk foods through the supply chain. On March 20, 2025, FDA announced its intention to extend the compliance date for the Food Traceability Rule (the “final rule”) from January 20, 2026 to July 20, 2028. from January 20, 2026, to July 20, 2028. The FDA proposal to extend implementation was released on August 6, 2025.
The final rule requires entities to maintain records containing specific “key data elements” (KDEs) when they engage in “critical tracking events” (CTEs) regarding foods listed on FDA’s Food Traceability List (FTL) or foods that contain FTL foods as ingredients (collectively, FTL foods). Entities engaging in certain activities at specified points in the supply chain will be required to assign a unique “traceability lot code” (TLC) to each FTL food, and subsequent entities in the supply chain will need to link KDE records to the food using the food’s TLC. The relevant KDEs must be maintained by each entity for two years after creation and while the rule does not mandate the form in which the data is stored, it does require that in certain cases the data be provided to FDA in an electronic, sortable spreadsheet within 24 hours of request.
CDA is supportive of Food Traceability Enhancement Act (H.R.7563) from the 118th Congress that would require pilot programs to be conducted by the FDA with members of the retail food industry to evaluate the effectiveness of investigations of outbreaks of foodborne illnesses without using traceability lot codes, as well as the feasibility of using low-cost food tracing technologies. The bill also specifies that recordkeeping requirements for high-risk foods may not require restaurants, retail food establishments, or related warehouses to keep or share information about traceability lot codes.
For more information, please visit our Food Safety Modernization Act page.
Questions? Contact Tom Briant (tomb@cdaweb.net; (703) 208-1641),
Kathee Facchiano (kfacchiano@capitoldecisions.com; (202) 638-1950)
or Sarah Herbert (sherbert@capitoldecisions.com; (202) 638-0326).