DOJ: News Release

McGrath: State Receives Tobacco Settlement Payment

HELENA – Attorney General Mike McGrath said Friday that the state has received $26.7 million, the latest payment of the 1998 tobacco settlement. The payment brings the total compensation to the state from the settlement to $177.4 million.

“The tobacco settlement continues to bring our state substantial funding to invest in tobacco prevention and other important public health matters,” McGrath said. “One of its main goals was to reduce the number of young people who smoke, and the settlement’s marketing restrictions and public education components are doing just that.”

Forty percent of the payment, or $10.7 million, will be deposited in the tobacco trust fund approved by Montana voters in November 2000. The remainder will be distributed as follows:

  • 32 percent – Tobacco prevention/cessation and human service programs
  • 17 percent – Children’s Health Insurance Program, Comprehensive Health Association programs and Medicaid matching funds
  • 11 percent – General fund

Under the negotiated settlement, the major tobacco companies agreed to pay up to $206 billion to the states, as well as to abide by a number of restrictions on advertising and sales. Montana was slated to receive up to $920 million through the year 2025. However, the settlement contains a clause allowing tobacco industry payments to decrease for certain specified adjustments including, for example, a decrease in payment if the number of cigarettes sold decreases.

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