
Key Points
- Trump held tobacco stocks;
- Industry donated over $24m;
- FDA eased some nicotine rules;
- Critics cite conflict concerns;
- Industry highlights harm reduction.
2Firsts
June 12, 2026
A report published by KFF Health News says President Donald Trump held investments in tobacco companies while receiving support from tobacco-industry-linked political donors during a period in which his administration pursued policies viewed as favorable to the nicotine sector.
According to the report, Trump held up to US$1.64 million worth of stock in Philip Morris International (PMI) this year.
Financial disclosures also showed holdings in Altria and other tobacco companies, although the precise scale of those investments remains unclear because of inconsistencies in some disclosure filings.
KFF Health News cited federal campaign finance records showing that tobacco interests have contributed more than US$20 million to MAGA Inc., the super PAC supporting Trump, since late 2023.
Trump’s inauguration reportedly received nearly US$4 million more from tobacco-related interests.
The report noted that on April 30, 2026, one week before the FDA released new guidance affecting the nicotine sector, Reynolds American contributed an additional US$5 million to MAGA Inc.
According to KFF Health News, these financial developments coincided with a series of policy initiatives viewed positively by the tobacco and nicotine industry.
These included pilot programs designed to accelerate approvals for nicotine pouches, policies allowing certain nicotine and vaping products to remain on the market while applications are under review, and approvals of additional vaping products.
The administration has also expanded enforcement efforts against illicit e-cigarettes.
Investment analysts have argued that such measures could benefit large, regulated tobacco companies.
Goldman Sachs analysts previously noted that newer nicotine products generate substantially higher margins than conventional cigarettes.
For example, PMI expects its ZYN nicotine pouch business to generate gross profits roughly eight times higher than its cigarette portfolio.
The report noted that during his campaign for a second term, Trump publicly claimed that he had “saved” flavored vaping products and criticized Democratic efforts to restrict them.
In May, the FDA issued guidance allowing manufacturers to continue marketing certain vaping and nicotine pouch products while awaiting agency review.
The agency also authorized additional vaping products.
Those decisions drew criticism from public health groups.
American Lung Association CEO Harold Wimmer said it was concerning to see the FDA change direction after years of highlighting the risks flavored vaping products pose to youth.
Former FDA Center for Tobacco Products Director Mitch Zeller questioned both the scientific basis and procedural process behind the guidance.
Several Democratic senators described the decision as creating a significant commercial opportunity for tobacco companies.
The White House rejected suggestions that policy decisions were influenced by political donations or presidential investments.
White House spokesperson Kush Desai said the administration’s health policies are guided solely by “Gold Standard Science.”
He said FDA actions regarding nicotine pouches and vaping products reflect evidence suggesting such products may help adult smokers quit cigarettes.
PMI also denied any connection between its business interests and government policy decisions.
Company spokesperson Samuel Dashiell said PMI participates in public policy discussions to support public health objectives and provide better alternatives for adult nicotine consumers.
The report also noted that the Trump administration withdrew a Biden-era proposal to ban menthol cigarettes and has continued developing regulatory pathways for nicotine pouches.
Barclays analysts argued that stronger enforcement against illicit e-cigarettes may also benefit legitimate tobacco companies.
Public health organizations, however, warned that regulatory easing combined with cuts to tobacco-control programs could undermine decades of progress in reducing smoking.
Brian King, former director of the FDA’s tobacco office and now an executive at Campaign for Tobacco-Free Kids, said reducing investments in tobacco prevention and control could lead to greater tobacco use and disease burden.
He argued that the United States has achieved significant reductions in smoking over recent decades and that current policy trends could put those gains at risk.
According to KFF Health News, the evolving relationship between tobacco regulation, harm reduction policy and political influence is becoming an increasingly prominent issue in U.S. public health debates.
Cover image:KFF Health News
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