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Tobacco Debt

A landmark 1998 settlement with Big Tobacco awarded states billions of dollars a year to offset the health-care costs of smoking. What seemed like a boon become a debt trap for many state and local governments when they used it to promise investors billions in the future in exchange for cash advances.

A landmark 1998 settlement with Big Tobacco awarded states billions of dollars a year to offset health-care costs of smoking. In many cases, the income became a debt trap when state and local governments traded it years in advance for upfront cash.

15 stories published since 2014

Top Tobacco Bond Banker Departs Barclays

Another Big Tobacco Bond Deal, Cajun Style

Years After Tobacco Deals Sold, SEC Says Rating Agencies Still Conflicted

Behind New Jersey's Tobacco Bond Bailout, A Hedge Fund's $100 Million Payday

What Investment Bankers Say About Rating Agencies Behind Their Backs

Bankers Brought Rating Agencies ‘To Their Knees’ On Tobacco Bonds

Scoring the Latest Tobacco Bond Bailout: Investors $10, Taxpayers $1

Tobacco Settlement Funds Sprinklers, Golf Carts and a Grease Trap

How One New York County Fell Into the Tobacco Debt Trap

How We Analyzed New York County Tobacco Bonds

Podcast: In Big Tobacco Cash, a Boon Turned Burden

Investors Haul In Nearly Half the Tobacco Settlement Cash

How Tobacco Bonds Work, and What Can Go Wrong

Tobacco Bonds May Be Dangerous to Your State's Financial Health

How Wall Street Tobacco Deals Left States With Billions in Toxic Debt

What We’re Watching

During Donald Trump’s second presidency, ProPublica will focus on the areas most in need of scrutiny. Here are some of the issues our reporters will be watching — and how to get in touch with them securely.

Learn more about our reporting team. We will continue to share our areas of interest as the news develops.

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Sharon Lerner

I cover health and the environment and the agencies that govern them, including the Environmental Protection Agency.

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Andy Kroll

I cover justice and the rule of law, including the Justice Department, U.S. attorneys and the courts.

Photo of Melissa Sanchez
Melissa Sanchez

I report on immigration and labor, and I am based in Chicago.

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Jesse Coburn

I cover housing and transportation, including the companies working in those fields and the regulators overseeing them.

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