News

Senators have agreed to remove language that would close a hemp regulatory loophole from the fiscal year 2026 Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations bill, following a clash between Republican Kentucky Senators Mitch McConnell and Rand Paul. On July 10, 2025, the Senate Committee on Appropriations approved FY26 Ag-FDA bill by a unanimous vote of 27-0, including the language pushed by McConnell that 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. The House Appropriations Committee approved similar language in their FY26 Ag/FDA spending bill.

On July 29, 2025, Senate Appropriations Agriculture-FDA subcommittee Chair John Hoeven (R-ND) told reporters that the hemp provision was removed after Paul threatened to block Senate passage of the appropriations bill entirely. A spokesperson for McConnell said that the senator “doesn’t want to hold up the process” of passing all appropriations bills and is “working with the committee on a path forward.” Senators are moving to clear key hurdles in their effort to pass several spending bills before the August recess and working toward avoiding a government shutdown in two months. Read more here.

On July 29, 2025, the U.S. Food and Drug Administration (FDA) announced plans to crack down on an opioid substance derived from the kratom plant known as 7-hydroxymitragynine (7-OH). FDA Commissioner Marty Makary said the agency is urging the Drug Enforcement Agency (DEA) to classify 7-OH as a Schedule 1 substance.

7-OH can be found in tablets, gummies and drink mixes commonly sold online, in gas stations and convenience stores. FDA officials said they are not targeting the herbal supplement kratom but products containing its byproduct sold in synthetic concentrations. The FDA has already issued warning letters to seven companies for illegal marketing products containing 7-OH. The products advertise the compound as an added ingredient, or being included at enhanced levels. Read more here.

In response to the flood of illegal and unregulated tobacco and nicotine products in the U.S, a broad group of regulated manufacturers, retailers and distributors launched the “Coalition for Smarter Regulation of Nicotine” (Regulate Smarter) to advance a modern, common-sense approach to regulating nicotine products. Chaired by former U.S. Senator Richard Burr (R-NC), Regulate Smarter will advocate that the U.S. Food and Drug Administration’s (FDA) Center for Tobacco Products (CTP) adopt a science-based regulatory framework to establish a well-regulated marketplace that continues to drive underage use down and meets the growing demand among adult tobacco consumers for proven less-harmful nicotine products. Read more here.

On July 30, 2025, the U.S. Food and Drug Administration (FDA) sent a notice requesting nominations for voting members to serve on the Tobacco Products Scientific Advisory Committee (TPSAC) by Aug. 25, 2025. Individuals may self-nominate or be nominated by any interested person or organization. TPSAC advises FDA in its responsibilities related to the regulation of tobacco products, such as any application submitted by a manufacturer for a modified risk tobacco product. The committee reviews and evaluates safety, dependence and health issues concerning tobacco products and provides appropriate advice, information and recommendations to the FDA commissioner.

Specifically, TPSAC is seeking to fill five vacancies with physicians, dentists, scientists or health care professionals practicing in oncology, pulmonology, cardiology, toxicology, pharmacology, addiction, engineering or any other relevant specialty. Included in the five vacancies is one vacancy for a representative of the general public, and one vacancy for an employee of federal, state or local government. Selected members will be invited to serve for terms of up to four years, which will begin on Feb. 1, 2026, after the current members’ terms expire. Read more here.

On July 28, 2025, the U.S. Food and Drug Administration (FDA) sent a notice regarding FDA's Office of Inspections and Investigations (OII) Office of Import Operations (OIO) implementing changes to the import entry review process that will impact engagement with FDA import operations. Effective Aug. 4, 2025, OIO will implement the Nationalized Entry Review (NER) program to address the increasing volume of imported FDA-regulated commodities driven by e-commerce growth, expanded trade volume and supply chain complexities.

OIO is transitioning from the current geographic location model to a national-based review system that will:

• Conduct entry admissibility reviews on a national basis versus the current port-by-port entry review approach
• Utilize staff across multiple time zones for expanded coverage
• Explore automation opportunities to streamline processes
• Optimize resource allocation to focus on higher-risk products

For detailed procedures regarding urgent shipments and additional contact protocols, please refer to the FDA National Entry Review (NER) Trade Communications Guide.

On July 28, 2025, a coalition of 21 states and Washington, D.C. filed a lawsuit against the U.S. Department of Agriculture (USDA) after the agency told states to turn over the detailed, personal information of food assistance applicants and their household members.

The USDA has told states they have until July 30, 2025, to provide data about all applicants to the Supplemental Nutrition Assistance Program (SNAP), over the last five years, including names, Social Security numbers, birth dates and addresses. The agency broadened the scope of information it is collecting to include other data points, including immigration status and information about household members. While immigrants without legal status are ineligible for SNAP benefits, U.S. citizen children can qualify for the program regardless of the immigration status of their parents.

The suit asserts that the USDA's data collection plan is unconstitutional, violates federal privacy laws and USDA's own authority. In addition to the USDA and Agriculture Secretary Brooke Rollins, the suit also names the USDA's Office of Inspector General as a defendant, as that office has been separately requesting sensitive data from some states. Read more here.

The U.S. Food and Drug Administration (FDA) has issued a Federal Register notice announcing a Tobacco Products Scientific Advisory Committee (TPSAC) meeting on Oct. 7, 2025, to discuss the renewal of modified risk granted orders issued to Philip Morris Products S.A. for the following products:

• Marlboro Amber HeatSticks
• Marlboro Green Menthol HeatSticks
• Marlboro Blue Menthol HeatSticks
• IQOS 2.4 System Holder and Charger
• IQOS 3.0 System Holder and Charger

Read more here.

On July 17, 2025, the U.S. Food and Drug Administration (FDA) authorized the marketing of five JUUL e-cigarette products through the premarket tobacco product application (PMTA) pathway. The JUUL products now authorized for sale in the United States include the JUUL electronic device, Virginia Tobacco flavor JUULpods (3% and 5% nicotine concentration) and Menthol flavor JUULpods (3% and 5% nicotine concentration).

Following an extensive scientific review, the FDA determined that evidence provided by JUUL Labs – including new information the company submitted in response to a deficiency letter from the FDA – demonstrated that these specific products meet the legal standard set by the 2009 Family Smoking Prevention and Tobacco Control Act to market new tobacco products in the United States.

The FDA’s updated list of 39 authorized electronic cigarette products, including the new JUUL product authorizations, can be found here.

To read the complete FDA announcement regarding the authorization of the JUUL electronic cigarette products, click here.

Arlington, TX
February 16-18, 2026

Exhibitors: register online today!

Register now to increase your opportunity of being assigned a preferred booth location through the CDA priority point system. The CDA priority point system expires July 31. Exhibit space is assigned on a first-come first-served basis after July 31.

At Marketplace, the focus is to bring together distributors with their top trading partners and suppliers over a three-day period, featuring a one-day turnkey trade show, focused education sessions, a distributor showcase and enhanced networking opportunities.

Attendee registration opens in September.

By attending Marketplace 2026, you agree to the CDA Notices & Disclaimers.

About Marketplace | Exhibitor Prospectus | Trade Show

The CDA Business Academy is a 10-week virtual education program designed for emerging, rising leaders and middle managers in the convenience products distribution industry. Through a combination of self-paced online learning and expert-led sessions, participants will gain tools they can apply immediately to drive real results.

The curriculum includes:

• Organizational Leadership – align your team to achieve a shared vision and goals
• People Management – create a system of management that empowers your entire team
• Financial Mastery – demystify the financials with tools to build a more profitable business

The program will run from September 18 through December 4, with live sessions held every other Thursday. This cohort is open to all CDA members, supporting leadership development across the industry – registration closes July 31.

Ready to invest in your future leaders? Click here to learn more or contact Lauren Herbert for details.

Open exclusively to CDA members. Participants must be employed on an ongoing basis by a CDA member company in good standing.

U.S. Food and Drug Administration (FDA) Commissioner Marty Makary spoke to news outlets to mark his 100th day leading the agency. Makary discussed several FDA priorities, including shutting down illegal vaping imports. In an interview with American Thought Leaders, Makary said, “In China, these childhood vaping products, where we don’t even know what’s in them, they’re banned in China and they ship them over to the United States.” He noted these illegal Chinese vaping devices are readily available at local vape shops and are designed to be appealing to kids. He also noted that many of the shipments that are turned away at ports are simply being rerouted elsewhere, called “port shopping.”

The FDA plans to seek stronger authority to seize goods at ports as well as work more closely with other U.S. agencies, such as the Department of Justice (DOJ). Makary also said the FDA is taking a closer look at kratom extracts and preparing to ask Congress for expanded authority to shut down illegal vaping imports.

On July 16, 2025, the Senate Committee on Commerce, Science, and Transportation (CST) convened a nominations hearing for modal administrators of the Department of Transportation (DOT). The nominees included: Mr. Derek Barrs, of Florida, to be Administrator of the Federal Motor Carrier Safety Administration (FMCSA); Mr. Jonathan Morrison, of California, to be Administrator of the National Highway Traffic Safety Administration (NHTSA); and Mr. Paul Roberti, of Rhode Island, to be Administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA).

During the hearing, Morrison, the nominee to lead NHTSA, told members of the panel that the agency he hopes to soon lead should craft self-driving rules that go beyond the current voluntary guidelines that were enacted under previous administrations.

On July 22, 2025, the Senate CST Committee’s Subcommittee on Surface Transportation, Freight, Pipelines, and Safety convened a hearing titled “Shifting Gears: Issues Impacting the Trucking and Commercial Bus Industries in the U.S.” The hearing examined the trucking and motorcoach industries, with an emphasis on enhancing safety, reducing regulatory burdens and ensuring the long-term viability of these essential transportation operators. Lawmakers and witnesses discussed opportunities for meaningful regulatory and policy reforms, including consideration of the FMCSA's regulations, workforce challenges and enforcement, and compliance requirements in the context of the next surface transportation reauthorization. Read more here.

On July 9, 2025, the U.S. Customs and Border Protections (CBP) issued an update to the trade community informing them that the U.S. Food and Drug Administration (FDA) review exemption on the importation of certain low-value FDA-regulated products has been rescinded.

All entries of FDA-regulated products must be reviewed for admissibility by the FDA, regardless of their quantity or value. Previously, certain FDA-regulated products could be released by the CBP without FDA notification, if eligible for exemption. Now, because technological capabilities of both the trade and the FDA have advanced significantly, it is necessary that even low-value entries ($800 or less) undergo FDA review to ensure they comply with FDA requirements. This change allows the FDA to review all electronically transmitted FDA-regulated products offered for import to facilitate legitimate trade and prevent the importation of violative products.

Through the FDA and CBP's continued partnership, they have implemented this change to eliminate supply chain vulnerabilities that may pose a public health risk. This is another step that both agencies have taken to eliminate supply chain gaps and improve the quality of imported products that FDA regulates.

The goal of this decision is to improve supply chain oversight, improve public health protection, and identify repeat offenders that are deliberately trying to evade FDA evaluation. The FDA will work with trade to answer questions and ensure clarity. Questions can be directed to imports@fda.hhs.gov. Read more here.

The U.S. Department of Health and Human Services (HHS) officially began laying off staff members across several offices, including the Center for Tobacco Products (CTP). The notices come after the U.S. Supreme Court ruled in an 8-1 decision that the Trump Administration could resume its plans for mass layoffs within HHS.

Over 10,000 HHS employees, including some within CTP, received Reduction In Force (RIF) notices earlier this year, as Secretary Kerry acted to reduce the workforce within the agency. How many of those 10,000 received notices this week has yet to be revealed. Read more here.

CDA is excited to introduce the CDA Business Academy, a dynamic 10-week virtual education program designed for emerging, rising leaders and middle managers in the convenience products distribution industry. The program’s curriculum focuses on the essentials of people management and business finance.

The eLearning experience blends self-paced online learning with live interactive sessions led by facilitators and industry experts. Structured to fit full-time schedules, the fully virtual format allows participants to learn at their convenience while still engaging in collaboration and networking with peers. The program equips learners with practical tools they can implement immediately on the job.

The CDA Business Academy will run from September 18 through December 4, with live sessions held every other Thursday. This program is open to all CDA members, supporting leadership development across the industry – registration closes July 31.

Ready to invest in your future leaders? Click here to learn more or contact Lauren Herbert for details.

Open exclusively to CDA members. Participants must be employed on an ongoing basis by a CDA member company in good standing.

Arlington, TX
February 16-18, 2026

Exhibitors: register online today!

Register now to increase your opportunity of being assigned a preferred booth location through the CDA priority point system. The CDA priority point system expires July 31. Exhibit space is assigned on a first-come first-served basis after July 31.

At Marketplace, the focus is to bring together distributors with their top trading partners and suppliers over a three-day period, featuring a one-day turnkey trade show, focused education sessions, a distributor showcase and enhanced networking opportunities.

Attendee registration opens in September.

By attending Marketplace 2026, you agree to the CDA Notices & Disclaimers.

About Marketplace | Exhibitor Prospectus | Trade Show

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, 2025. The measure, which was advanced by a unanimous vote of 27-0, provides $27.1 billion in discretionary funding. Read the Committee’s summary here and the full Committee report here.

The Committee Report includes language titled, “Increased Enforcement Action Against Unauthorized E–Cigarettes and Tobacco Improvements.” The report language directs the FDA to prioritize resources by “establishing a floor of $200,000,000” to be spent on enforcement activities to ensure illegal e-cigarette and tobacco products are expeditiously removed from the market and urges the FDA to promptly complete its required premarket review of e-cigarettes and utilize “all legally authorized remedies” to ensure the removal of products from the market. The report also directs the FDA to use $2 million of that money to support the activities of the Federal multi-agency task force created in June 2024.

The bill also includes language that 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.

With some notable exceptions, there is wide support in both the House and Senate for banning or restricting the sale of hemp-derived THC products, and the House Appropriations Committee previously approved similar language in their FY26 Ag/FDA spending bill. Off the Hill, there is concern that despite the delay, the language would ban most hemp-derived THC products available to consumers. Given the ban is delayed for a year, there may be an effort to address the ban before it goes into effect.

Finally, the Committee Report also directs the commissioner of the FDA and Secretary of Agriculture to provide lawmakers with a report on implementation of the new prohibition, “including the projected impacts to the established cannabinoid marketplace, engagement with industry stakeholders, and shall include information about uniform packaging, labeling, testing, and adverse event reporting requirements.” It would be due within 180 days of the law’s enactment. Read more here.

The U.S. Food and Drug Administration (FDA) issued warning letters to companies illegally marketing products containing 7-hydroxmitragynine (7-OH). Although 7-OH naturally occurs in trace amounts in kratom, the agency's letters focus on concentrated 7-OH products.

Currently, 7-OH cannot be lawfully added to food products and there are no FDA-approved drugs containing 7-OH as an added ingredient.

The warning letters specifically focus on the marketing of both food and drug products containing 7-OH as an added ingredient or enhanced levels of 7-OH. Read more here.

On July 10, 2025, U.S. Food and Drug Administration (FDA) Commissioner Martin Makary issued a statement listing the accomplishments of the agency during his first 100 days at the FDA.

In the statement, Commissioner Makary states, “As I mark my hundredth day on the job at the FDA, I’m proud to celebrate the agency’s accomplishments in the bipartisan effort to Make America Healthy Again. I came here with big questions: Why does it take ten years for a drug to reach patients? How can we fix America’s food supply so it is not filled with harmful chemicals and additives? Why are childhood chronic diseases so prevalent? Over the past 100 days, we’ve launched dozens of key initiatives across the full range of the FDA’s purview to help make food healthier for children and families, accelerate meaningful cures and treatments, and modernize the agency with transparency, gold-standard science and common sense.”

With regards to tobacco-related matters, Commissioner Makary’s statement also focused on combatting illicit vapor products. Specifically, Commissioner Makary reported that a collaboration with U.S. Customs and Border Protection has netted seizures of nearly $34 million worth of illegal, youth-appealing e-cigarette products originating in China.

Read the full statement issued by Commissioner Makary here.

Wednesday, July 23
1:00-1:30 pm ET
Register now!

Join us for the first in a series of exclusive CDA member webinars focused on the Food Safety Modernization Act (FSMA) Section 204(d) – the FDA’s Food Traceability Rule. This initial session will break down what the rule entails, its implications for your business, and how CDA is championing a strategic approach to support members through education, advocacy, and practical resources.

Stay ahead of the curve of FSMA 204 - don’t miss this essential opportunity to get informed and prepared.

After overcoming significant opposition and obstacles within the Republican caucus, the House of Representatives passed the GOP’s $3.4 trillion tax-and-spending package, known as the “One Big Beautiful Bill Act (OBBBA)” on July 3. The House stayed in session overnight as House Speaker Mike Johnson (R-LA) and President Trump cajoled and wore down opposition from roughly two dozen Republican lawmakers with various concerns and reservations about the legislation after changes made in the Senate. In the end, the bill passed 218-214, with Congressman Thomas Massie (R-KY) and Congressman Brian Fitzpatrick (R-PA) being the only House Republicans to vote against the bill. Before final passage, Minority Leader Hakeem Jeffries (D-NY) spoke out about the harms of the bill for a record-breaking 8+ hours, using his “magic minute” floor speech to delay a final vote on the legislation. Earlier in the week, the Senate GOP overcame similar obstacles, with Senators passing the bill on July 1 after the Senate pulled its own all-night voting session. Ultimately, the Senate passed the bill in a 51-50 vote, with Vice President JD Vance breaking the tie. Senator Lisa Murkowski’s (R-AK) support, which came after hours of negotiation with Majority Leader John Thune (R-SD), was also critical to its passage. Three Republican lawmakers, Senators Rand Paul (R-KY), Thom Tillis (R-NC) and Susan Collins (R-ME), voted against the bill with every Senate Democrat.

The nearly 900-page reconciliation bill has vast impacts across policy areas and industries, including taxes, healthcare, education, defense, energy, and the debt ceiling. President Trump signed the legislation at a ceremony at the White House on Friday, July 4. While the legislation has been signed into law, the Treasury Department will issue guidance and rulemaking on many specific tax provisions over the coming months.

Some of the key provisions of importance to CDA members include:

• Estate and Gift Tax: CDA distributor members asked Members of Congress to provide more certainty in estate planning by repealing the death tax during their annual Day on the Hill. OBBBA provides a win for CDA members with an exemption for the estate and gift tax that is permanently extended and increased to $15 million for individual filers, and $30 million for married couples filing jointly, starting in tax year 2026. The exemption amount is indexed to inflation after 2026.
• No Taxes on Overtime Pay: The legislation establishes a deduction for overtime compensation for taxable years 2025 through 2028. The deduction is capped at $12,500 for individuals and $25,000 for joint filers and phases out for income that exceeds $150,000 for individuals and $300,000 for joint filers. While the deduction is effective on January 1, 2025, it provides transition relief for the first year allowing employers to approximate a separate accounting of amounts designated as qualified overtime compensation by any reasonable method.
• Paid Leave: The 2017 Tax Cuts and Jobs Act's (TCJA) paid family and medical leave tax credit for employers is made permanent under the legislation. The credit allows employers to claim non-refundable credits ranging from 12.5% to 25% of the wages paid to workers on paid leave.
• Pass-Through Business Income: The bill keeps the 199A business deduction for pass-through companies at its current level of 20%. It also increases the phase-in range making the deduction more generous for those phasing out of the credit. In addition, the legislation creates a new minimum deduction of $400 for eligible taxpayers with at least $1,000 of pass-through income beginning in 2026.
• Corporate Charitable Donations: The legislation puts new limits on corporate charitable deductions, allowing corporate taxpayers to deduct charitable contributions between 1% to 10% of taxable income. The measure allows contributions beyond the cap to be carried forward for as long as five tax years.
• Employee Retention Tax Credit (ERTC): OBBBA includes provisions on the ERTC, including heightened due diligence requirements on promoters with respect to a taxpayer’s eligibility for an ERTC. It also prevents the IRS from paying out ERTC claims filed after January 31, 2024, for the third and fourth quarters of 2021. The provision is a pared-back version of the ERTC repeal initially proposed in the House, which sought to retroactively block all claims filed after January 31, 2024, including those filed for 2020 and the first two quarters of 2021. Due to the Byrd Rule, that language was changed and limited to the third and fourth quarters of 2021.
• Depreciation Deductions: The bill permanently restores the 100% bonus depreciation rate for certain property if it was placed in service on or after Jan. 19, 2025. The legislation also allows taxpayers to immediately deduct 100% of the cost of qualified production property that is put in service before 2031. It increases the maximum amount that could be deducted for certain depreciable business assets to $2.5 million. It phases out for costs of qualifying property that exceeds $4 million.

Read more about the legislation here.

The Supreme Court has allowed the federal government to resume reductions in force (RIF) and agency restructuring efforts, impacting workers at agencies like the Department of Health and Human Services (HHS). This reverses a lower court’s injunction issued in May that had temporarily blocked the Trump administration’s restructuring plans, which include administrative leave and layoffs. While the Supreme Court did not weigh in on the legality of the plans themselves, the stay permits them to proceed while the Ninth Circuit reviews the case. Read more here.