
With the new year, it is time to provide a forecast of the legislative and regulatory landscape.
On the federal level, the Food and Drug Administration (FDA) is likely to provide more clarity on premarket tobacco product applications (PMTAs) for vapor and nicotine pouches. Last September, the FDA launched a pilot program that aims to increase efficiency and streamline the review process for nicotine pouches. The initiative has already yielded results: in December, the FDA issued PMTA authorizations for six On Plus nicotine pouch products.
As has been reported, there has been an influx of illicit vapor products, mostly from China. Because they have not applied for authorization or presented any science to the FDA, these products may not be sold legally. The Trump administration cracked down on these products and increased enforcement is expected to continue in 2026. NATO maintains on our website a tracker of FDA’s administrative and enforcement actions regarding the disposable vapor brands cited as unauthorized or illegally sold.
Increased transparency can also be expected from the FDA this year. During the second half of 2025, officials from the agency started attending industry conferences to provide insights on the focus and priorities of the FDA’s Center for Tobacco Products (CTP). Additionally, as part of the nicotine pouch PMTA pilot program, the FDA is engaging directly with manufacturers on their applications.
On the state level, 46 states will hold legislative sessions in 2026. With uncertainty around state budgets, many states are likely to consider tobacco excise tax increases to address shortfalls. In 2025, 10 states enacted new or increased tobacco and nicotine product excise taxes, which was higher than in recent years. Additionally, some states that currently do not tax vapor products or nicotine pouches could introduce legislation levying excise taxes on those categories.
Approximately 15 states will likely consider some form of flavored tobacco and nicotine product ban. With California having a statewide flavor ban, neighboring states such as Oregon and Washington have considered bills and will likely do so again in 2026. States that surround Massachusetts, the first state to enact a flavor ban, will also likely consider flavor bans.
Also expected to continue in 2026 is the emerging issue of creating state vapor product registries. The introduction of these bills is in response to the uncertainty around the FDA PMTA process and the proliferation of flavored disposable e-cigarettes on the market. The regulatory status of many products remains unclear to retailers and the public. This includes: products for which a PMTA was never filed; those for which a PMTA was timely filed and the application is awaiting an order; and those for which a PMTA was denied but the application remains pending for legal reasons. These state bills create a state-based directory that requires e-cigarette manufacturers to submit information to state tobacco regulators demonstrating that the sale of their e-cigarette products in the state complies with FDA regulations and guidance.
In the past five years, local activity has increased markedly as many major cities have implemented tobacco flavor bans. It is expected that this trend will likely continue in 2026. Additionally, the National Association of Tobacco Outlets (NATO) team is leading advocacy efforts with several Massachusetts towns opposing “nicotine-free generation” proposals that would ban the sale of tobacco and nicotine products to anyone born after a fixed date.
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