Lawmaker Proposes Changes to Tobacco Settlement Trust

Proposal Targets Tobacco Settlement Trust Fund for Education Spending

A renewed effort to restructure the Tobacco Settlement Endowment Trust (TSET) is emerging at the Oklahoma Capitol, as lawmakers once again debate how the multibillion-dollar fund should be used.

State Representative Trey Caldwell is advancing a proposal that would place a constitutional amendment before Oklahoma voters, fundamentally changing the structure and purpose of TSET funding. The plan would allow money from the trust to be used for education programs, rather than being limited strictly to public health initiatives.

The Tobacco Settlement Endowment Trust was created by voters in 2000 following Oklahoma’s share of the national tobacco settlement. Voters intentionally placed strict limits on how the money could be spent, dedicating the fund to improving the health of Oklahomans through prevention, research, and wellness programs.

Tobacco Settlement Trust fund long eyed by lawmakers

For years, lawmakers have debated tapping into the TSET fund, which has grown to billions of dollars due to investment returns and limited withdrawals. Supporters of restructuring argue that the state faces pressing needs — particularly in education — and that the trust could play a role in addressing long-term challenges.

Representative Caldwell’s proposal would require voter approval because TSET is protected by the Oklahoma Constitution. Any changes to its structure or spending authority must be approved at the ballot box.

Concerns raised over voter intent

Opponents of restructuring warn that altering TSET’s mission could undermine voter intent and weaken funding for health initiatives. Public health advocates argue the trust has played a critical role in reducing smoking rates and supporting preventive healthcare across the state.

They also caution that using the fund for unrelated purposes could set a precedent for future raids on constitutionally protected accounts.

The proposal is expected to generate significant debate as lawmakers weigh fiscal flexibility against voter-mandated protections.

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