Iowa Set to Receive $171 Million from Tobacco Manufacturers in Legal Settlement
Iowa Attorney General Brenna Bird announced on Tuesday that Iowa is set to receive over $171 million from tobacco manufacturers as part of a new legal settlement. This agreement resolves an 18-year-long dispute between the state and tobacco companies.
Under the terms of the settlement, Iowa will receive an additional $136 million in April 2024, with the remaining amount disbursed annually from 2025 to 2029. Around 78% of the payments will go toward paying down the state’s debt to bondholders, while the remaining funds will be deposited into the State Treasury’s Rebuild Iowa Infrastructure Fund.
The settlement brings an end to Iowa’s litigation with tobacco companies over annual payments owed as part of a 1998 agreement between 46 states and major tobacco industry manufacturers. Iowa was one of the nine states that were still engaged in slow-moving arbitration over the payments, while 37 other states had already resolved similar disputes.
Attorney General Bird expressed her satisfaction with the settlement, noting that it puts an end to a costly legal battle that only benefited the lawyers involved. She stated, This is a good deal for Iowa taxpayers, getting us the $136 million we are owed now instead of staying tied up in litigation for decades.
According to the American Heart Association, there is scientific research linking the use of e-cigarettes to negative impacts on the heart and lungs. The increased funds received through this settlement will provide Iowa with the opportunity to address public health concerns and invest in rebuilding key infrastructure projects.
Overall, this settlement marks a significant victory for Iowa, not only in terms of the financial boost it provides but also in resolving a longstanding dispute and allowing the state to focus its resources on other pressing matters.
