Kentucky receives $112 million in annual tobacco settlement funds

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.

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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