In her 2026 State of the State address, Gov. Kathy Hochul issued a direct challenge to the tobacco industry’s latest play for New York’s youth. Her proposal includes increasing the wholesale tax on alternative nicotine products, such as nicotine pouches, to 75%, and a distributor charge of $0.55 per e-cigarette, aligning state policy with public health realities. These measures close a loophole the tobacco industry exploits to keep addictive alternatives to cigarettes affordable for New York’s most price-sensitive demographic: young people.
Studies show that taxing unhealthy products is the most effective way to reduce their consumption, and has been successful at limiting the use of tobacco, alcohol, and sugary beverages. In 2002, the cigarette tax in New York was $1.50. Today, the combined city and state tax is $6.85, resulting in the highest average price per pack in the country at $14.55. Over the past two decades, cigarette use has declined from 22.3% to 9.3%.
However, while public health advocates were winning the war against cigarettes, the tobacco industry was pivoting. It swapped smoke for pouches and vapes, creating a new generation of nicotine-dependent New Yorkers under the guise of innovative, harm-reduction, or harmless products.
Products such as ZYN and other nicotine pouches are not classified as tobacco products because they don’t contain tobacco leaf. This technicality has allowed the tobacco industry to bypass the excise tax on cigarettes and chewing tobacco. As a result, these products are sold at a much lower price point, appealing to their target demographic: middle and high schoolers.
Tobacco use among youth has declined dramatically, but easy access to these new nicotine products is reversing our progress in weaning young people off nicotine. E-cigarettes are the most popular nicotine product among youth, although nicotine pouches are quickly gaining traction among this demographic: Among 10th- and 12th-graders, nicotine pouch use doubled between 2023 and 2024.
This matters because while we have been inundated with the dangers of smoking, nicotine is a drug with its own hazardous effects, particularly on young brains. Nicotine use during adolescence disrupts attention and learning, increases susceptibility to addiction, and intensifies symptoms of anxiety and depression. Nicotine is not a “safer alternative”; it is a neuro-disruptor that can have long-term effects on the developing brain.
There are two camps in this fight. The first views newer products as a harm-reduction tool for current smokers; the second warns of a deliberate industry strategy to attract youth, with the result being a new generation addicted to nicotine.
Hochul’s approach to creating similar price points for nicotine products is clearly focused on youth. It’s challenging for a single policy to address both sides of the problem — helping smokers quit and preventing youth from starting to use nicotine products — but pushing adults to these new products is not necessarily the answer. Rather, it is ensuring that FDA-approved medications for quitting smoking, such as nicotine gum/lozenges and Chantix, are covered by insurance or available at prices lower than cigarettes. This is the way forward to address persistent use of one of the most dangerous products on the market.
New York has led the nation in tobacco control before. States like Washington and Oregon have already recognized that smokeless nicotine products must be taxed to fund public health. Hochul’s proposal isn’t just about revenue; it’s about making it as difficult as possible for a child to start a lifelong addiction.
The tobacco industry is agile, constantly rebranding addiction to stay one step ahead of the law and gain customers for life. By codifying these taxes in the upcoming FY27 budget agreement, the state legislature would move beyond rhetoric and implement a policy that would take effect this September. With these taxes on alternative tobacco products, New York sends a clear message: Our children’s health is not for sale, and there is no loophole large enough to hide the harm of nicotine. Camilo Parra is a project manager with New York City Treats Tobacco (NYCTT). Seiya Sachdeva is a senior at New York University studying public health.