The Economic Times

A decades-old tobacco settlement is drying up, and Americans may feel the financial hit

Tobacco settlement funds in the U.S. are under pressure as payments linked to the 1998 tobacco settlement may decline. About $206 billion was paid in the first 25 years under the Tobacco Master Settlement Agreement. Declining smoking rates are reducing tobacco company payouts. Programs in Kentucky depend on this money for healthcare and education. Officials warn funding could shrink further. Governments are now searching for new revenue sources to replace tobacco settlement funds.