Oklahoma Tobacco Settlement Endowment Trust

At a glance. TSET is Oklahoma's constitutional endowment built from tobacco settlement payments. Its USD 1.72 billion corpus is invested by a Board of Investors, and only the earnings are spent, on grants that fight tobacco use and obesity and so reduce cancer and heart disease. It has put about USD 1 billion into Oklahomans' health since 2000, including USD 150 million of Legacy Grants in 2025. S1 S3

Key points

• Corpus balance of USD 1.72 billion at 30 June 2025. S1
• Receives 75 percent of each settlement payment: USD 44.2 million of USD 58.9 million in 2025. S1
• Only investment earnings are spent; the fiscal 2025 grant and programme budget was USD 82.1 million. S1
• Budget split: tobacco prevention 35 percent, obesity prevention 21 percent, research 17 percent, emerging opportunities 16 percent. S1
• Awarded USD 150 million of Legacy Grants in November 2025. S3
• Two boards: five investors chaired by the State Treasurer, and seven directors who award the grants. S1

Interesting facts

• Oklahoma's adult smoking rate more than halved, from 28.6 percent in 2001 to 14.1 percent in 2024. S1
• Its research grants have helped bring in over USD 855 million of further funding. S1
• Its Tobacco Helpline had a 45.4 percent quit rate in fiscal 2025, against a 30 percent national benchmark. S1

Mandate and goals

Reduce Oklahoma's leading causes of preventable death, tobacco use and obesity, to cut cancer and cardiovascular disease, using only the endowment's earnings. S1

• Prevent and reduce tobacco use. S1
• Prevent obesity through nutrition and physical activity. S1
• Fund health research and local health projects. S1
• Spending rule: Principal is kept; only investment earnings are spent on grants and programmes S1

How it invests

Published criteria

• Grants must target tobacco use, obesity or related disease. S1
• Directors represent each of Oklahoma's congressional districts. S1

Past investments

Case studies

The Oklahoma Tobacco Helpline S1

• What: TSET launched a free statewide quit line, later adding free nicotine replacement products.
• When: Since 2003
• Size: Not published
• Why: Tobacco use was the state's leading cause of preventable death.
• Outcome: Adult smoking fell from 28.6 to 14.1 percent (2001 to 2024); 45.4 percent quit rate in fiscal 2025.

Research that attracts more funding S1

• What: Grants to research centres such as Stephenson Cancer Center and an adult stem cell centre.
• When: 2007 onwards
• Size: Not published
• Why: To build Oklahoma's research base in cancer and chronic disease.
• Outcome: Over USD 855M of additional funding leveraged.

Investment process

The Board of Investors, chaired by the State Treasurer, invests the corpus. The bipartisan Board of Directors, named by seven appointing authorities, allocates earnings to grants and programmes. S1

1. Settlement payments are split and 75 percent is deposited. S1
2. The Board of Investors invests the corpus. S1
3. Earnings fund an annual grant budget. S1
4. Directors award grants through published programmes. S1

How to approach: Grant applicants use TSET's published grant programmes; there is no investment intake. S3

Size and returns

• Headline size: USD 1.72B (Fund market value, as of 2025-06-30) S1
• In US dollars: about USD 1.72B. Fund reports in US dollars
• Invested in health since inception: About USD 1B (Committed or authorised capital) S3
• Returns: the fund does not publish a return figure.
• Size over time (USD billion): June 2025 1.72 S1

Leadership

Governance and transparency

• Legal basis: Oklahoma Constitution, amendment approved by voters in 2000 S1
• Oversight: Two constitutional boards; audited annual statements S1
• Directors are bipartisan and represent each congressional district. S1

Transparency score: 5.5 of 10 (band 3 of 5). Our own 10-item rubric; see the methodology page.

• Published: total assets, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S1 S3 S4
• Partly published: annual return. S1
• Not published: long-term returns, asset allocation, geographic or sector split, holdings or deal list. S1

History

Reports

• FY25 Annual Report: https://oklahoma.gov/content/dam/ok/en/tset/documents/public-info/reports-data/35896%20TSET%20FY25%20Annual%20Report_NoBleed-F.pdf S1

Common questions

How big is TSET?

USD 1.72 billion corpus at 30 June 2025. S1

Where does the money come from?

75 percent of Oklahoma's tobacco settlement payments. S1

Who invests it?

A Board of Investors chaired by the State Treasurer, Todd Russ. S1

Who leads TSET?

J. Lance Thomas, Interim Executive Director since April 2026. S5

Related profiles

• Alaska Permanent Fund United States (Alaska) · USD 91.9B
• New Mexico State Investment Council (SIC) United States (New Mexico) · USD 74.63B
• Texas Permanent School Fund United States (Texas) · USD 60.6B
• Texas Permanent University Fund (PUF) United States (Texas) · USD 40.29B
• Alberta Heritage Savings Trust Fund Canada (Alberta) · C$31.9B
• North Dakota Legacy Fund United States (North Dakota) · USD 15.10B

All sovereign wealth funds in North America · All sub-national permanent funds · All funds in United States

Sources

1. S1TSET, FY25 Annual Report: Past, Present and Future
2. S2IFSWF, members list
3. S3TSET, website
4. S4TSET, staff
5. S5TSET, leadership transition and interim director, April 2026