After 43 days of a historic federal shutdown, President Donald Trump signed the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act of 2026 (H.R. 5371) on November 12, restoring full-year funding for key federal agencies. 

Buried deep in this massive funding bill — in Part B, Section 772 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2026 (S.2256) — is a new mandate that will dramatically increase federal enforcement against e-cigarettes, vapes, and other Electronic Nicotine Delivery Systems (ENDS). 

What Section 772 Does 

Section 772 of the new law directs the U.S. Food and Drug Administration (FDA) to use at least $200 million from its annual tobacco user fees to fund enforcement specifically targeting ENDS products. 
According to the legislation: 

$2 million of this budget must continue to fund a multi-agency task force (including the Department of Justice and Department of Homeland Security) aimed at stopping illegal imports and distribution of vapes, particularly those originating from China. 

The FDA must also update its 2020 “Enforcement Priorities” guidance within one year to expand enforcement to include flavored disposable vapes, not just cartridge-based systems. 

The agency is required to define what constitutes a “disposable ENDS product” — a step that could reshape how entire product categories are regulated. 

Every six months, the FDA must report to Congress on the progress of removing unauthorized products from the market. 

In a technical but significant move, the Act also amends Section 801(a) of the Food, Drug, and Cosmetic Act, explicitly inserting “tobacco product” into the statute. This change formally aligns import and seizure authority for tobacco products with that of drugs and devices — effectively strengthening the FDA’s legal hand at the border. 

What This Means for the Industry 

This is the largest single enforcement funding allocation for the U.S. vape sector since the FDA’s 2016 “deeming rule.” The agency now has both the budget and congressional backing to ramp up seizures, inspections, and import restrictions across the ENDS supply chain. 

While the stated intent is to target illegal, foreign-made, non-PMTA vapes, the reality is that broad language and aggressive implementation could once again sweep up small U.S. manufacturers and distributors — many of whom are still waiting on FDA decisions for timely PMTA reviews. 

This approach risks reinforcing a system where only the largest tobacco corporations can afford to remain compliant while small, innovative American companies continue to face uncertainty or enforcement action. 

A Familiar Pattern: Funding Enforcement Without Reform 

Section 772 is a clear signal that the FDA’s enforcement-first strategy remains in full effect. Instead of streamlining PMTA reviews or supporting pathways for legal, lower-risk nicotine products, Congress has opted to strengthen the agency’s punitive tools. 

Meanwhile, consumers — especially adult smokers who have switched to vaping — remain caught in the crossfire of policies that blur the line between protecting youth and restricting harm reduction. 

What Happens Next 

Within 180 days, the FDA must submit its first report to Congress outlining steps taken to: 

• Educate retailers on identifying “legal” products, 
• Enforce against imports and sales of unapproved ENDS, and 
• Coordinate with other agencies under the new federal task force. 
• How this enforcement funding will actually be deployed — and whether it will prioritize public health outcomes over bureaucratic crackdowns — remains to be seen. 

But one thing is clear: the passage of Section 772 marks a pivotal moment. It reflects a government that’s doubling down on enforcement while sidestepping long-promised reforms to the FDA’s broken authorization system — the very system that created this black market in the first place. 

Bottom line: 
The FDA just received a $200 million mandate to “clean up” the vape market. The hope is that it targets truly illegal, unsafe imports — not the legitimate, compliant U.S. businesses that built this industry from the ground up.