Ontario is getting $7B from the tobacco settlement. Why the silence on where it’s going?

Months after an Ontario court approved a $32.5 billion settlement in a 14-years-long lawsuit by all provincial governments and people who suffered from tobacco-related disease against the tobacco industry, one question looms large – why has Ontario been silent on its plans for its share of this money?

Ontario should pledge to invest part of the $7.3 billion it receives in tobacco and vape control initiatives and preventative measures. However, the Ontario government has not said a word – even with perfect opportunities like the release of the 2025 provincial budget and World No Tobacco Day on May 31, a day when governments often pledge their commitment to address tobacco use and vaping.

Heart & Stroke, Canadian Cancer Society and Canadian Lung Association have been clear in their call: Ontario Minister of Health Sylvia Jones and Minister of Finance Peter Bethlenfalvy ought to direct funding from the tobacco settlement into targeted cessation, prevention and other tobacco control efforts. The goal? To create a healthier Ontario and reduce health-care costs inflicted by Big Tobacco and vape companies on Ontario’s future generations.

Investing just six per cent of the approximate $7.3 billion into tobacco and nicotine control would double the current Smoke-Free Ontario Strategy budget to $88 million a year for 10 years and put the province on track to meet the goal of five per cent tobacco use by 2035. This is warranted given that Ontario’s reduction in smoking rates, currently at 11 per cent, have slowed compared to other provinces, and youth vaping rates remain high with those in Grades 10-12 at 21.5 per cent, and Grades 7-9 at 8.5 per cent. Vaping rates among the younger age group have risen each year, a trend unique to Ontario.

The purpose of the provincial lawsuits was to hold the tobacco industry accountable for decades of wrongdoing, deception and health-care system burden. Since 2000, cigarettes have killed more than 1 million people in Canada and remain the leading cause of premature death. Canadians are devastated by the death and suffering of their loved ones, many of whom began smoking at a time when tobacco companies deliberately hid evidence on the health consequences of their products. Taxpayers are frustrated that they’ve been footing the health-care bill while the tobacco industry continues to profit from the sales of traditional cigarettes and new nicotine products such as vapes that continue the cycle of addiction and poor health.

Taxpayers are frustrated that they’ve been footing the health-care bill while the tobacco industry continues to profit off of products such as vapes.

Tobacco control initiatives are highly effective with a return on investment of 20:1. By re-committing six per cent ($44 million) in settlement funds to the Smoke Free Ontario strategy, giving it an expanded budget of $88 million, the Ontario government could have an impact in five key areas:

• Increased funding for enforcement officers and compliance programs. In 2024, 32 per cent of vape stores sampled in the province were non-compliant with policies. Sales to minors and failure to check age were the most common offences.
• Expanded funding for cessation programs, including universal coverage of nicotine replacement therapy, prescription medications and counselling which, when combined, is the gold-standard for quitting.
• New funding for mass public awareness campaigns, education and prevention programs. Young people often are unaware of how harmful and addictive vaping can be until they’ve already started. Vaping can harm brain development in young people and is linked to addiction and lung and vascular issues.
• Increased funding for vape and tobacco research, monitoring, policy development and evaluation.
• Additional funding for Indigenous-led initiatives to address commercial tobacco use.

It’s critical that the government seize this historic opportunity to address the wrongs of the past and ensure future generations do not inherit the same public health crisis we did. Let’s invest in health, awareness and enforcement – before it’s too late.