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by ERIN PARROTT
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South Carolina attorney general Alan Wilson announced earlier this month that the Palmetto State had secured $63.1 million as its share of the latest annual payment from the landmark tobacco Master Settlement Agreement (MSA).
The payment is part of a sweeping 1998 legal resolution between 46 states, the District of Columbia and several U.S. territories and the nation’s largest cigarette manufacturers – widely regarded as the largest financial recovery in U.S. legal history.
Since its inception, the agreement has reshaped the tobacco industry via strict advertising restrictions – while providing states with ongoing compensation tied to the public health costs of smoking.
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According to Wilson’s office, South Carolina has now received more than $2.11 billion in total MSA payments since the agreement was finalized in November 1998. These funds are primarily directed into the state’s Healthcare Tobacco Settlement Trust Fund, which supports a range of healthcare-related programs aimed at offsetting the long-term costs associated with tobacco use.
Beyond its financial impact, the MSA continues to serve as a regulatory framework – with attorneys general across the country, including Wilson, tasked with enforcing compliance among participating tobacco companies.
In the years since the original agreement, roughly 50 additional tobacco manufacturers have joined the settlement and are bound by its provisions.
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The latest payout arrives amidst an ongoing debate over tobacco policy and regulation in South Carolina.
As previously reported by FITSNews, discussions have intensified around the role of alternative nicotine products and whether the state should encourage smoke-free options as a harm-reduction strategy – or maintain stricter regulatory controls on emerging products.
While this debate rages on, the annual MSA payments remain a steady – if controversial – revenue stream for state governments, tying public health outcomes to long-term financial compensation from the tobacco industry.
According to the latest data (.pdf) from the S.C. Department of Public Health (SCDPH), approximately 11.8% of South Carolina adults were smokers as of 2023 – down precipitously from 27% in 1992. During the most recent (2024-2025) fiscal year, taxes on cigarettes generated roughly $99.7 million of revenue – of which $12.3 million went to the state’s general fund, $5 million went to the Medical University of South Carolina, $5 million went to smoking cessation efforts and the balance ($77.4 million) went to Medicaid.
Count on FITSNews to keep you informed as South Carolina continues to navigate the evolving landscape of tobacco policy, public health and regulatory enforcement.
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ABOUT THE AUTHOR…
Erin Parrott is a Greenville, S.C. native who graduated from the University of South Carolina in 2025 with a bachelor degree in broadcast journalism. Got feedback or a tip for Erin? Email her here.
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