Tobacco Money, Going Up in Smoke

In 2006, concerns were raised about Washington, D.C.’s use of funds from the 1998 tobacco Master Settlement Agreement. Despite the settlement’s intent to mitigate smoking-related healthcare costs, none of the money had been allocated to tobacco control efforts, and smoking rates had actually increased—particularly among Medicaid recipients, where it reached 35%.
At the time, the city was spending $72 million annually on smoking-related Medicaid costs. As Mayor Anthony Williams proposed using future settlement payments for other projects, health advocates urged the D.C. Council to invest in prevention and cessation programs. The D.C. Tobacco Coalition recommended a $10 million investment over three years to reduce smoking rates and long-term healthcare expenses.