November 15, 2024
As the final results from the 2024 Election continue to come in, Cigar Rights of America continues to provide updates on the rapidly evolving political landscape and what that means for the premium cigar industry.
Control of House of Representatives Secured by GOP
The Republican Party has now officially gained control of the House of Representatives. Along with their victories in the Presidency and the Senate, this gives President-Elect Trump’s party legislative dominance in the new Congress.
One top agenda item for that new 2025 Congress will be a comprehensive package on tax issues. With Republican control, the Trump Tax cuts are likely to be extended. In any significant tax bill, there is also the possibility of changes to taxes on tobacco products. CRA will be engaged strongly as the tax bill takes shape and will provide updates on preventing any tax hikes for our industry.
Trump Formally Nominates Robert F. Kennedy Junior for Health and Human Services Secretary
Reports indicate that President-Elect Trump intends to nominate RFK, Jr. to head the vast Department of Health and Human Services (HHS). The HHS Secretary controls the Food and Drug Administration, the National Institute of Health, the Centers for Disease Control and Prevention, and other public health agencies.
Kennedy has campaigned to “Make America Healthy Again,” although his primary focus has been on food and nutrition, agriculture, and vaccine issues. He has cast himself as a foe of the pharmaceutical industry in particular and stated that he believes entire sections of FDA should be eliminated, including the Agency’s work on nutrition.
Kennedy has not discussed premium cigar or tobacco issues extensively during the campaign, and his intentions with regard to the CTP are currently unknown. The HHS Secretary also has significantly less authority to restructure CTP than other departments – the majority of funding comes directly from User Fees rather than from Congress, and the structure of the Center was created through the Tobacco Control Act itself, rather than set Administratively. Should Kennedy be confirmed, we do not currently expect that tobacco issues will be his immediate focus. Historically, HHS Secretaries have also tended to strongly defer on this topic to their FDA Administrators. RFK Jr.’s vocal support for ensuring that HHS and FDA follow the science as opposed to politicized agendas could prove beneficial for premium cigars.
Other News Items
- Senator Marco Rubio will be nominated to serve as Secretary of State. Sen. Rubio has been a steadfast champion of premium cigar issues. His voice in President Trump’s cabinet is expected to be critical of international relations and trade. With the implementation of tariffs on imported goods likely and the potential reorganization of trade agreements and tariff schedules, Rubio will be a key Administration official for our industry. CRA has long had a close relationship with Senator Rubio, and we look forward to working with him in his new role.
- No officials have yet been named to head the Center for Tobacco Products or the Food and Drug Administration, and several other key public health posts remain vacant. CRA will continue to provide updates on these critical positions as more information becomes available.
- President-Elect Trump has named billionaire Elon Musk and Vivek Ramaswamy as co-leads of a Department of Governmental Efficiency (DOGE), which will not in fact operate as part of the government, but will make recommendations on streamlining and reducing red tape. An Independent review of the Center for Tobacco Products by the Reagan-Udall Foundation has found CTP to be rife with inefficiency and in need of better priority setting. This may make them a prime target to be aggressively overhauled by such an effort. This new department along with “Schedule F” proposals could radically alter the regulatory environment. CRA will eagerly engage in any review processes as they are developed.
The future of premium cigar legislation and regulation are at a pivotal moment amidst recent Supreme Court decisions, an ongoing federal appeal, significant shifts in the political landscape, and growing momentum behind anti-regulatory efforts. CRA will continue to apprise our stakeholders of our advocacy efforts and developments.