Kentucky to receive $94 million in Tobacco Settlement Funds

Kentucky is receiving another $94.4 million from the Tobacco Settlement Funds, which will go to support several statewide initiatives.

According to a news release from Attorney General Russell Coleman, the Commonwealth has received $2.96 billion from the nationwide agreement with cigarette manufacturers since 1998. Kentucky has designated half of the funds for agricultural diversification, with grants being 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.

Under the Tobacco Master Settlement Agreement, cigarette manufacturers must make a yearly payment based on an annually adjusted rate per number of cigarettes sold each year.

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.