Attorney General Coleman Announces Kentucky Received $105 Million in Tobacco Settlement Funds

Agreement has delivered nearly $3 billion over 20-plus years for Farm Families and Child Development

FRANKFORT, Ky. (April 23, 2024) – Attorney General Russell Coleman announced today that Kentucky has received $105,477,754.14 for this year’s Tobacco Master Settlement Agreement (MSA) payment. The Commonwealth has received $2.7 billion from the nationwide agreement with cigarette manufacturers since 1998.

“As someone who spent his teenage years working in Logan County tobacco patches, this is a reminder of the enduring importance of this industry to our Commonwealth. For more than two decades, Kentucky has put these funds to work supporting our farm families and helping our children live healthier and more productive lives,” said Attorney General Coleman. “I’m grateful to Michael Plumley on our team who is critical to securing these resources and support for Kentucky families.”

In 1998, Kentucky and 51 states and territories reached the MSA with major cigarette manufacturers. The historic agreement resolved state lawsuits against the tobacco companies for Medicaid and other health costs related to smoking. In addition to the annual compensation, the MSA seeks to reduce underage smoking and decrease new smokers. Each state determines how the settlement funds are used.

In Kentucky, half of the funds are allocated for agricultural diversification through grants distributed by the Kentucky Department of Agriculture. The remaining funds are 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 all agricultural grant application decisions and monitors expenditures under the other funds. 

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.

Assistant Attorney General Michael Plumley administers the MSA for the Attorney General's Office, ensuring that cigarette manufacturers perform their responsibilities, and that Kentucky gets its share of funds, under the agreement.