Kentucky has received $94.4 million as part of this year’s payment from the Tobacco Master Settlement Agreement, according to attorney general Russell Coleman’s office.
The latest payment brings the total amount Kentucky has received from the nationwide agreement with cigarette manufacturers to $2.96 billion since 1998.
The agreement, reached in 1998 between Kentucky and 51 states and territories and major cigarette manufacturers, resolved state lawsuits over Medicaid and other health costs tied to smoking. There are also provisions aimed at reducing underage smoking and discouraging new smokers.
Kentucky has designated half of the settlement funds for agricultural diversification programs with grants distributed through the Kentucky Department of Agriculture. The remaining funds are split evenly between the Early Child Hood Development Fund and the Kentucky Health Care Improvement Fund.
The General Assembly’s Tobacco Settlement Agreement Fund Oversight Committee is responsible for reviewing agricultural grant applications and monitoring spending from the other funds.
Payments to states are determined annually based on the number of cigarettes sold by participating manufacturers, with rates adjusted each year. Kentucky will continue to receive payments as long as participating companies sell cigarettes in the United States.
Source: WHAS11
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