U.S. State and Local Issues

Spending on Tobacco Prevention: Washington, DC

Last updated November 29, 2011

Summary: The U.S. Centers for Disease Control and Prevention (CDC) recommends that District of Columbia spend $10.5 million a year to have an effective, comprehensive tobacco prevention program. District of Columbia currently allocates $0.0 a year for tobacco prevention and cessation. This is 0.0% of the CDC's recommendation and ranks District of Columbia 50th among the states in the funding of tobacco prevention programs. District of Columbia's spending on tobacco prevention amounts to 0.0% of the estimated $75 million in tobacco-generated revenue the state collects each year from settlement payments and tobacco taxes.

Recent Developments: The District of Columbia was among the last localities to make a decision on how to use its tobacco settlement funds. In 2001, after three years of budget debates with no spending decisions, the City Council agreed to then-Mayor Anthony Williams' plan. The plan was to securitize most of the settlement funds by issuing bonds backed by the $1 billion that the city expects to receive over the next 25 years. The money raised was transferred into a trust fund used to pay the city's debt. The tobacco settlement payments are used every year to re-pay the bonds. Once the bondholders are paid, any remaining money from the trust is held in escrow for three years. Beginning in 2004, any remaining funds would be available for expenditure for other programs. These funds are still subject to appropriation by the City Council and Mayor. A Reserve Fund was also created to cover any residual cost from each year's payment. If the money in the Reserve Fund is not needed for the bond payment in June, a portion would be released in July each year for other expenditures. The Mayor and City Council must then agree on how to spend any residual funds. Beginning in FY2007, the DC City Council allocated $10 million for a tobacco prevention program over three years. In FYs 2007-2009, DC spent a total of $10 million spread over three years administered for tobacco prevention programs. These funds were administered by the American Lung Association. In FY2010, the council chose to not re-appropriate these funds leaving the District of Columbia with significantly less funding than what was spent in the past.

In FY2012, there will be no state funding for tobacco prevention and cessation programs in the District. The program is surviving on dollars from the Centers for Disease Control and Prevention.

DC is spending nothing on tobacco prevention, despite the fact that the city is receiving more tobacco-generated revenue than ever before as a result of a 50-cent cigarette tax increase, enacted in 2009, bringing it $2.50 a pack.

The District of Columbia is receiving $839,640 million in federal funds dedicated to tobacco prevention and control:

• $531,744 from the U.S. Centers for Disease Control and Prevention in a 12-month grant for the period beginning April 2011 (from annual appropriations).

• $307,896 from the Food and Drug Administration for enforcement of the Family Smoking Prevention and Tobacco Control Act, including the provision regarding tobacco sales to minors.