In Win for Public Health, Oklahoma Supreme Court Upholds Independence of Tobacco Settlement Endowment Trust

WASHINGTON, D.C. – The Oklahoma Supreme Court today delivered a huge victory for public health by ruling that a new state law undermining the independence of the state’s Tobacco Settlement Endowment Trust (TSET) violates the Oklahoma Constitution. This ruling ensures that TSET can continue, free from political interference, with its critical mission of protecting kids from tobacco addiction and saving lives in Oklahoma. 

TSET was established in 2000 following a ballot measure approved by Oklahoma voters, which enshrined TSET in the state Constitution and gave it the authority to receive and allocate the majority of the annual payments Oklahoma receives under the 1998 Master Settlement Agreement (MSA). The MSA requires various tobacco companies to compensate states with annual payments in perpetuity for the costs caused by smoking. Oklahoma has been a national leader in using its tobacco settlement revenues to fund programs that prevent kids from using tobacco and help tobacco users quit, driving down tobacco use in the state. 

Under the voter-approved constitutional amendment that created TSET, members of TSET’s Board of Directors serve seven-year terms. However, in 2025, the Oklahoma Legislature passed a law allowing elected officials to replace members of the board “at their pleasure.” As the Oklahoma Supreme Court found, this law violated voters’ intent in creating an independent body to allocate the state’s tobacco settlement funds in the public interest and protect its decisions from political interference. 

Today’s decision is a monumental win for public health that will ensure TSET’s lifesaving work continues without political interference. TSET has contributed to significant reductions in tobacco use in Oklahoma. Since its launch in 2003, the TSET-funded Oklahoma Tobacco Helpline has served over 600,000 individuals in all 77 counties. These efforts have contributed to a 51% decrease in adult smoking prevalence in Oklahoma, falling from 28.7% in 2001 to 14.1% in 2024. 

In August, eight leading medical, public health and community organizations filed an amicus brief supporting TSET’s lawsuit challenging the constitutionality of the 2025 law. The brief was filed by the Oklahoma State Medical Association, Oklahoma Academy of Family Physicians, Oklahoma Chapter of the American Academy of Pediatrics, American Cancer Society Cancer Action Network, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, and Campaign for Tobacco-Free Kids. The groups were represented by Wyatt McGuire of McGuire Law Firm.