Millions of dollars flowing into Kentucky from an e-cigarette company settlement go straight to the state’s general fund, mixing with public taxes and other revenue.
Republicans in both the House and Senate are trying again this year to redirect that money — and settlement dollars from any future, related litigation — into smoking and vaping prevention and cessation efforts, which they say is a more appropriate place for the funds.
Two bills — House Bill 187 and Senate Bill 74 — propose Kentucky establish a vaping settlement trust fund, administered by the attorney general, for the purpose of funnelling all money received through litigation or other measures from Juul toward tobacco-cessation efforts. Both bills have been assigned to committees but haven’t yet had hearings.
More than two dozen organizations — including the Kentucky Hospital Association, UK Markey Cancer Center, UofL Health Brown Cancer Center and the Kentucky Nurses Association — backed the effort in a recent advocacy letter. Attorney General Russell Coleman’s office did not respond to a Lantern email asking if he supports the bills.
Juul, an e-cigarette company, has to pay Kentucky more than $14 million dollars following a lawsuit over marketing practices aimed at youth. Those payments started in 2022. Juul’s next payment to Kentucky — about $2 million, gross — is due Dec. 31.
A final payment of more than $6 million is due by Dec. 31, 2027. Juul has the option to split that final payment into smaller installments over the course of several years, through 2031. The net amount that could go to cessation is about $6 million.
Sen. Craig Richardson, R-Hopkinsville, who is carrying the legislation in the Senate, said the impact of that investment would be “tremendous.”
“We’re already at a massive health care crisis in this country. We’re at a massive health care crisis in this state,” Richardson said. “To me, this is a simple way to make sure that money doesn’t just fall into the general fund, but is used for the intended purpose.”
‘Concerning’ smoking rates
More than 8,000 minors try cigarettes for the first time each year, according to The Campaign for Tobacco-Free Kids. About 5% of high school students smoke while nearly 20% use e-cigarettes, according to that organization’s data. Smoking also kills nearly 9,000 Kentuckians every year and costs the state billions in health care costs.
Smoking rates among youth are “very concerning,” said Rep. Robert Duvall, R-Bowling Green, sponsor of the House bill. By spending more on prevention and cessation, he said, Kentucky could lower the cost burden on the health care system and improve workforce participation at the same time.
Griffin Nemeth, a youth tobacco prevention advocate, said allocating the funds toward prevention and cessation is a “no brainer.”
“I think it’s less of a question of why we’re asking for allocation now, and more a question of why there hasn’t been one already,” he told the Lantern. “These funds are urgently needed to support youth prevention and cessation, specifically, and I think our legislature, especially with the recent wins that we’ve had in past years, is in a better place than ever to show some bipartisan support for the issue.”
One of those wins, for example, is a 2025 law that gave the Kentucky Department of Alcoholic Beverage Control inspection and enforcement powers over retailers who sell tobacco and vape products and established a framework for fining businesses and clerks who sell to underage Kentuckians.
“The youth nicotine use crisis is not disappearing anytime soon,” Nemeth said. “While we have had strong measures put in place to protect kids from these products at the point of sale, it’s time for that funding piece to catch up as well.”
The health care cost
Smoking costs Kentucky $6.3 billion every year in lost productivity and puts a $634 million dent in Medicaid, according to The Campaign for Tobacco-Free Kids, which also reports about 37% of cancer deaths each year are from smoking.
“We see the cost of health care increasing exponentially,” Duvall said. “We’re on a path that is not good when it comes to the cost of health care, so we’ve got to make every effort to reduce the cost of health care long term, and that starts with prevention.”
Richardson, whose wife is an oncology pharmacist, said anything to do with preventing cancer is “near and dear” for him. He also wants to create a framework that protects his daughter from vaping.
“I hope my daughter grows up to be … mature and forward thinking and preserving of herself and staying away from the temptations and that pressure,” he said. “It does hit close to home. It is personal, and sometimes I hate to make legislation about something so personal, because getting your emotions wrapped up in legislation could sometimes lead to even greater disappointment. But there are some things worth fighting for, and I think this is a good one.”
Neither Richardson nor Duvall expect a fight in passing this legislation, with both expressing widespread support from their colleagues. Lawmakers have proposed this legislation for three years, with advocates saying the biggest barrier to passage was the session clock.
“I don’t anticipate this being some kind of fight, knock down, drag out. The thing that worries me the most is we’re in a budget year, and there’s so many competing issues, I just don’t want this to get lost in the shuffle,” Richardson said. “But I do not anticipate there being any negativity or major opposition to the bill. I just worry that it might be a timing issue.”
During the 60-day legislative session, which adjourns on April 15, the legislature’s priority is to pass a two-year state budget, which will originate from the House. Leaders have said this budget may be the most difficult they’ve drafted as they navigate recent federal changes.
“This is obviously a challenging budget year, just because of the uncertainty with the One Big Beautiful Bill, and the Medicaid contributions that Kentucky is going to have to have,” Duvall said.
The One Big Beautiful Bill Act, will cut federal Medicaid spending over 10 years by $880 billion. Congress approved the measure last summer. More than 1 in 3 Kentuckians depend on Medicaid to pay for their health care.
Still, despite that “uncertainty,” Duvall said, the Juul fund proposal is “a pretty small ask in terms of the big picture.”
“I think the momentum is good. I think the feedback is positive,” Richardson said. “It’s just: Things are very busy up here, and we’ve got to be aggressive in getting it moved early.”
A ‘vital step’
Doug Hogan, the government relations director in Kentucky for the American Cancer Society Cancer Action Network, said one of the most effective prevention approaches involves peer-to-peer advocacy.
“Many times, a youngster starts using these products because he or she thinks that it’s cool and it’s the ‘in’ thing to do,” Hogan said. “If we can get to those kids and give them the facts and the truth and they hear it from someone who looks like them, is about the same age as them, then they’re much more likely to say, ‘oh, okay, I hadn’t thought of that. I didn’t know there were negative health consequences.’”
With the funds from Juul going toward programs that offer such peer-to-peer education, Hogan said, Kentucky could reach “tens of thousands of additional Kentucky students each year.”
“The Juul settlement was reached because Juul intentionally preyed upon the youth,” Hogan said. “And this legislation really is an important and vital step in ensuring that those settlement dollars are actually used for their intended purpose, which is youth prevention.”