The total economic impact of P.L.119-37 is expected to be significant. Industry analysts estimate:

• $4-6 billion in lost annual revenue for the hemp-derived THC sector
• 10,000-20,000+ jobs at risk in cultivation, manufacturing, and retail
• Hundreds of vape shops may close or significantly downsize
• State tax revenue from hemp sales will drop sharply

However, there will be offsets. Some consumer spending will shift to state-legal cannabis (in states where it's available), some to FDA-authorized nicotine products, and some to legal alternatives like CBD isolate and nicotine pouches. The net economic impact is still being debated.

For broader market context, see our Q4 2026 US vape market report.