FRANKFORT, Ky. (April 21, 2023) – The Kentucky Attorney General’s Office has announced that Kentucky received $118,272,348.74 for the 2023 annual payment from the Tobacco Master Settlement Agreement.
“This year, Kentucky received over $118 million from the Tobacco Master Settlement Agreement, bringing the total amount of funds received by the Commonwealth since 1998 to $2.66 billion,” said Attorney General Daniel Cameron. “I’m grateful to Michael Plumley for administering this settlement on behalf of our office, and am thankful for the support these funds will lend to agricultural initiatives and health and education programs.”
In 1998, Kentucky and 51 states and territories reached the Master Settlement Agreement with four major cigarette manufacturers. The historic settlement resolved state lawsuits against the tobacco companies for Medicaid and other health costs related to smoking. The MSA is the largest settlement in U.S. history.
Under the settlement terms, participating cigarette manufacturers must make a yearly payment to the states based on an annually adjusted rate per number of cigarettes sold each year. Kentucky will continue to receive payments from participating manufacturers each year they sell cigarettes in the United States.
The MSA serves two purposes – to obtain annual compensation for tobacco-related medical expenses and to reduce the number of new and underage smokers. It also sets restrictions for how tobacco products can be marketed.
Each state determines how the settlement funds are used. Kentucky’s General Assembly has allocated 50 percent of the MSA funds for agricultural diversification. The remaining half is split evenly between the early childhood development fund and the Kentucky Health Care Improvement Fund. The General Assembly’s Tobacco Settlement Agreement Fund Oversight Committee oversees and approves the agricultural grants.
Assistant Attorney General Michael Plumley administers the Tobacco Master Settlement Agreement on behalf of the Attorney General’s Office.
To learn more about the Tobacco Master Settlement Agreement, visit ag.ky.gov/MSA.