Virginia Receives Nearly $110 Million For its Diligent Enforcement of the Tobacco Master Settlement Agreement

RICHMOND, Va. -- Today, Attorney General Jay Jones announced the Commonwealth’s receipt of nearly $110 million in tobacco settlement award funds from major tobacco companies as part of their participation in the Tobacco Master Settlement Agreement. The Tobacco Master Settlement Agreement became active in 1998. It resolved Virginia's lawsuit against the major tobacco companies for violations of consumer protection laws and deceptive marketing practices that caused grave damage to the Commonwealth and its residents, including detrimental health outcomes, increased healthcare costs, and reduced quality of life.

The Tobacco Master Settlement Agreement allows states like Virginia to continue holding major corporations accountable for the tremendous toll their industry has taken on the health and lives of those in the Commonwealth,” said Attorney General Jay Jones. “These funds will enable Virginia to continue enforcing our tobacco laws, and direct essential funding to programs like the Virginia Healthcare Fund and the Virginia Foundation for Healthy Youth as they work to combat underage tobacco use. My office will always hold those who do wrong by Virginians accountable.”

Virginia has to date received over $3.5 billion in payments from the Master Settlement Agreement. 

Under the Settlement terms, Virginia and 51 other states and U.S. territories are eligible to receive annual payments, which help defray the cost of healthcare for smoking-related illnesses and create economic opportunities for regions of the Commonwealth once dependent on big tobacco for their livelihoods. The Master Settlement Agreement also contains significant public health protections for Virginians, including restrictions against youth marketing of tobacco products, sales of tobacco brand-name merchandise, and tobacco-sponsored entertainment and sporting events.

Attorney General Jay Jones and his office’s Tobacco Enforcement Section are responsible for enforcing the Master Settlement Agreement and related statutes.  Enforcement activities utilize the Settlement’s terms, as well as state and federal tobacco laws, to ensure that Virginia continues to receive the benefits of the agreement while also regulating Virginia's tobacco companies. 

Questions or inquiries regarding the compliance and reports of underage or illicit cigarette sales and distribution should be referred to the Office of the Attorney General's Tobacco Enforcement Section. 

Published on: April 29, 2026

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