Kentucky receives $112 million in annual tobacco settlement funds

tobacco farm farms

FRANKFORT, Ky. (WTVQ)- According to the Attorney General, Kentucky has received $112,659,718.88 from the Tobacco Master Settlement Agreement (MSA) in 2020.

That money goes every year toward diversifying agriculture in the commonwealth.

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Kentucky has received more than $2.2 billion from tobacco manufacturers since signing the agreement in 1998, according to the Attorney General’s office.

The state joined 52 other states and territories then in an agreement with major cigarette makers as a settlement against them for Medicaid costs related to smoking.

It’s up to each state to decide how to use the funds.

It’s also part of the MSA’s purpose to try to reduce the number of young people who smoke and the number of new smokers.

The tobacco makers involved make payments based on a rate per number of cigarettes sold per year, adjusted annualy.

In the Commonwealth, the General Assembly has decided to put half the MSA funds toward agricultural diversification through grants administered by the Office of Agricultural Policy.

Those are overseen by the Tobacco Settlement Agreement Fund Overisght Committee.


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Veronica Jean Seltzer joins ABC 36 as Anchor/Reporter. On most weekdays, you will see her reporting the news. VJ hails from a small horse farm outside New York City and most recently comes from South Bend, Indiana where she reported for the CBS and Fox affiliates. VJ holds a Master of Science in Journalism degree from Columbia University and a Bachelor of Arts degree from Tufts University. Her passion for journalism runs deep. It began as she studied graffiti as an ancient form of communication in Athens, Greece. While a student journalist in Morocco, she learned her most important journalistic lesson: good stories are about people. VJ loves life in and around Lexington. She feels most at home among horses and a diverse community of fascinating people. She enjoys reporting during the week and on the weekend she strives to bring her neighbors the news that matters most to them. VJ enjoys going to neighborhood events, exploring, horseback riding, skiing, sailing, and good movies. Look for her out and about in the community! VJ invites you to reach out to her with story ideas or just to say hello! Find her on Facebook at Veronica Jean Seltzer ABC 36, tweet her @VJS_ABC36, or email her at She looks forward to hearing from you!