Tobacco Settlement
In November 1998, the attorneys general of 46 states signed an agreement with four of the nation's largest cigarette manufacturers. This settlement is referred to as the Master Settlement Agreement (MSA). The MSA commits these tobacco manufacturers to pay approximately $206 billion to the 46 states over the first 25 years of the agreement. Of that, North Carolina’s share is estimated to be approximately $4.6 billion after 25 years. Money from the MSA is sometimes called “Phase I” money.
The N.C. General Assembly created three different programs to distribute the State's Phase I funds. The Golden LEAF Foundation, so named because the tobacco plant has golden leaves after they have been cured, receives 50% of the Phase I funds and makes grants for economic development in tobacco dependent communities. The Health and Wellness Trust Fund, a State agency receives, 25% of the Phase I funds and makes grants for health-related programs. The remaining 25% is allocated to the Tobacco Trust Fund Commission.
To date, Golden LEAF has received $706,546,189.63 in payments as a result of the tobacco settlement. Since it began making grants in 2001, Golden LEAF has awarded 667 grants totaling $246,767,918.22 to non-profit organizations and government entities throughout North Carolina. By 2025, it is anticipated the foundation will have received its full share, or approximately $2.3 billion, of payments resulting from the tobacco settlement.
Read more about this topic: Golden LEAF Foundation
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