The US hemp industry is preparing for a ban on most hemp products that Senator Mitch McConnell slipped into the spending bill just before the Senate voted to pass it and end the government shutdown.

Many in the industry have criticized the last-minute change, arguing that it should have been subject to open hearings rather than added at the last minute to a bill whose passage was essential for the government reopening. The ban, which goes into effect 12 months after the law’s passage, forbids all products that contain more than 0.4 milligrams of THC per package – a trace amount that is present in most CBD products, not just those whose primary component is THC.

The US hemp industry generates $28bn a year in revenue and employs 300,000 people, according to Jonathan Miller, general counsel for the US Hemp Roundtable.

It is not yet clear exactly what the ban will mean. Jasmine Johnson, CEO of GŪD Essence, a Florida based company that sells CBD-infused products, said she is preparing for several different possible scenarios “so our customers experience little to no disruption”.

One option would be a partial ban where states maintain autonomy, similar to the current framework around state-legal cannabis. Currently, state-legal recreational and medical cannabis does not have an upper limit on THC. But these products are heavily regulated, highly taxed and only available in licensed dispensaries. Hemp products, on the other hand, are often available for purchase in liquor stores, grocery stores and online.

Before the ban goes into effect, the only federal restriction on hemp products is that they must be derived from plants that contain less than 0.3% delta 9 THC – but they can include other forms of THC, which are sometimes chemically derived from plants that have a lower raw THC percentage.

If states are given autonomy over their hemp markets, hemp might continue to be available outside of cannabis dispensaries in those states.

“It would be a much more viable model than the current marijuana industry, because we would have the ability to distribute through liquor stores our grocery stores as long as it was an age-gated environment,” said Aaron Nosbisch, founder of BRĒZ, which makes THC beverages.

However, hemp companies would no longer be able to ship these products across state lines.

Josh Kesselman, founder of RAW Rolling Papers and owner of High Times magazine, believes the ban will be total, and is just the beginning of heightened restrictions on cannabis, noting that Mitch McConnell’s positions often align with the Heritage Foundation’s views. Their 2023 position paper on cannabis derided state legal cannabis markets and recommended cannabis remain federally illegal.

For this reason, Kesselman thinks Congress will move to eradicate the state legal cannabis market.

A total ban could mean that manufacturers will simply be forced to close or shift their focus to other kinds of products. Nosbisch pointed out that Brez “already has a functional line of our drinks that comprises over 30% of our revenue today”. These products contain ingredients like Lion’s Mane mushroom extract and L—Theanine.

Many in the industry, including Nosbisch, are optimistic that the ban will never be enforced at all – and that Congress will instead pass new legislation that federally regulates hemp.

“As challenging as this might seem, I really think in reality, it is the opportunity in disguise that the whole category has been waiting for, in order to create a more firm foundation for rapid industry growth,” Nosbisch said.

Miller explained that since the ban went through, “there’s been real backlash. People have finally woken up that this is going to take away products they love, and are contacting their members of Congress”. He added that some members of Congress, like Maxwell Alejandro Frost, a Florida representative, and Tina Smith, a Minnesota senator, are now speaking out against the ban for the first time.