Resources To Prevent Youth Vaping Act
- Sponsor
- Sen. Shaheen, Jeanne [D-NH]
- Committees
- Health, Education, Labor, and Pensions Committee (primary)
- Last action
- Mar 26, 2026
Bottom line
This bill aims to increase funding for FDA tobacco product regulation and public health campaigns by expanding the base of products subject to user fees, particularly targeting the growing e-cigarette market.
What it actually does
This bill significantly increases the total amount of user fees the Food and Drug Administration (FDA) can collect from tobacco product manufacturers and, starting in fiscal year 2029, expands the scope of these fees to include all classes of tobacco products, specifically targeting "deemed" products like e-cigarettes. It mandates the Secretary of Health and Human Services to develop a regulatory formula for assessing fees on these newly included products based on gross domestic sales data, which manufacturers will be required to submit. The bill also enhances annual reporting requirements for the FDA regarding how these fees are expended, particularly concerning youth e-cigarette prevention campaigns.
Proponents argue
Proponents argue that this bill is essential to provide the Food and Drug Administration with adequate resources to regulate the rapidly evolving tobacco product landscape, especially to combat the youth vaping epidemic. They contend that expanding user fees to all tobacco products, including e-cigarettes, ensures that all segments of the industry contribute to the costs of regulation and public health initiatives, aligning with the "polluter pays" principle. This funding is critical for robust enforcement, product review, and effective public education campaigns aimed at preventing youth initiation.
Opponents contend
Opponents, particularly from the e-cigarette industry, might argue that imposing new or increased user fees could disproportionately burden smaller manufacturers or innovative products, potentially stifling competition and consumer choice. They might also contend that such fees could be passed on to consumers, making harm-reduction products less accessible to adult smokers seeking alternatives. Concerns could also be raised about the FDA's allocation of funds, questioning whether the increased revenue will be effectively utilized for its stated public health goals without undue administrative burden.
The bill is relatively short and its core provisions are clear, making it accessible for a reader to understand its main impacts within a reasonable timeframe.
Section 2(a)
Increase in Total Tobacco Product User Fees
This provision raises the total amount of user fees the FDA can collect from tobacco product manufacturers. For fiscal years 2019-2026, it sets the amount at $712,000,000. For fiscal year 2027, this increases to $826,200,000. For fiscal year 2028 and subsequent years, the amount will be adjusted annually based on the Consumer Price Index for all urban consumers.
Supporters argue
Supporters argue that this increase is necessary to keep pace with the rising costs of regulating a dynamic tobacco market and to adequately fund public health initiatives, especially given the emergence of new product categories.
Critics contend
Manufacturers might argue that increased fees add to their operational costs, which could be passed on to consumers or hinder product development, especially for smaller companies.
Tradeoffs
Balances the need for increased FDA funding to protect public health against the potential financial burden on the tobacco industry and, indirectly, consumers.
Section 2(b)(1) and (2)
Application of User Fees to "Deemed" Tobacco Products
Beginning in fiscal year 2029, this provision expands the FDA's authority to assess and collect user fees from all classes of tobacco products, including those "deemed" subject to FDA regulation (such as e-cigarettes, cigars, and hookah tobacco). Previously, fees were primarily collected from cigarettes, smokeless tobacco, and roll-your-own tobacco. The Secretary is directed to develop a new formula by regulation to allocate fees for these newly included products based on their gross domestic sales.
Section 2(b)(2)(D) and 2(b)(3)
Mandatory Sales Data Submission and Enforcement
This provision requires all manufacturers and importers of tobacco products to submit detailed information to the Secretary, including their identification, classes of products sold, full listings of finished "deemed" tobacco products, and gross domestic sales data for each class. This data collection begins in March 2028 for calendar year 2027 sales. Failure to submit this required information is explicitly designated as a prohibited act under the Federal Food, Drug, and Cosmetic Act, making it subject to enforcement actions.
Section 2(c)
Secretary's Discretion in Intra-Class Fee Allocation
This amendment changes the method for determining the percentage of total user fees to be paid by individual manufacturers or importers within a specific class of tobacco products. Instead of referencing a formula from Public Law 108-357, the bill states that this percentage "shall be the percentage determined by the Secretary." This grants the Secretary greater flexibility in setting the allocation methodology.
Section 3
Detailed Reporting on Tobacco Regulation Activities
This section amends existing law to require the FDA to include additional details in its annual reports on tobacco regulation. Starting FY2027, reports must break down spending on "deemed" vs. "combustible" tobacco products and explain how public education campaign funding for youth e-cigarette prevention is sufficient. Starting FY2029, reports must also break down user fees collected from "deemed" products versus traditional categories.
This clause specifies that if the Secretary fails to finalize the new user fee allocation formula for "other tobacco products" by fiscal year 2029, the FDA will continue to assess and collect fees from the existing categories (cigarettes, smokeless, roll-your-own) without the reduction that would otherwise apply once "other tobacco products" start contributing. The expansion of fees to "other tobacco products" would be delayed until the formula is finalized.
Section 2(b)(2)(C)(iv)
Why it matters:This is standard legislative practice to address potential administrative delays in implementing new regulatory frameworks, ensuring continuity of funding for existing programs while the new system is being established. It prevents a funding gap.
Case for: Ensures that FDA's funding from tobacco user fees is not interrupted if there are delays in developing the new regulatory formula for "deemed" products, maintaining resources for ongoing public health activities.
Case against: Could be seen by some as placing an indefinite burden on traditional tobacco product manufacturers if the new formula is significantly delayed, as they would continue to bear the full fee amount without the intended reduction.
Estimated impact: Prevents a potential funding shortfall for the FDA's Center for Tobacco Products, which could amount to hundreds of millions of dollars annually, by maintaining existing fee collection levels.