Tobacco Master Settlement Agreement (1998)
46 states signed a settlement with the four largest tobacco companies worth $206 billion over 25 years, meant to recover smoking-related health costs. Participating states agreed to use the money for tobacco control and prevention.
States began receiving annual payments in 2000 and often used them to close budget gaps.
By the 2010s, only a small share of settlement money went to tobacco prevention; most was diverted to general funds or unrelated programs.
The opioid settlements follow the same structure: large, restricted-use payouts spread over decades. Richmond's choice to direct its share to shelters and abatement programs, rather than general spending, echoes the tobacco decision — and carries the same risk of diversion down the road.
