Distribution of Tobacco Settlement Proceeds to Local Political Subdivisions

The 76th Texas Legislature created the Tobacco Settlement Permanent Trust Account as a cooperative project between the Texas Department of Health (now DSHS) and the State Comptroller of Public Accounts in order to provide local health departments and hospital districts a portion of the payments from the state's tobacco settlement. These funds can be used by recipients to offset dollars they have dedicated to indigent health care.

Payments from the permanent fund are based on the amount of unreimbursed health care expenditures the local health agency reports to DSHS. It is the responsibility of DSHS to certify to the State Comptroller’s office the percentage of the annual distribution to be paid to each qualified recipient. The Comptroller’s office is responsible for managing trust funds and issuing payments.

DSHS publishes a list of political subdivisions receiving settlement funding each year along with more information about funding distribution. Click here to view more about distribution of tobacco settlement proceeds to local political subdivisions.

**NOTICE to political subdivisions eligible to receive Annual Distributions from the Tobacco Settlement Permanent Trust Account:

Please see the April 7, 2016 memorandum (PDF) regarding recommendation to plan for a 2017 distribution amount that is no greater than the 2016 distribution amount.

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Last updated February 8, 2017