North Carolina Tobacco Trust Fund Commission Grant

The North Carolina Tobacco Trust Fund Commission (NCTTFC), established by the North Carolina General Assembly in 2000, was created to manage and distribute funds received from the Master Settlement Agreement (MSA) with major cigarette manufacturers. The Commission's primary mission is to support communities impacted by the decline of the tobacco industry by fostering economic stability and sustainable agricultural practices. The fund operates with a focus on alleviating unemployment, stabilizing tax bases in rural communities, and promoting optimal natural resource use, particularly in tobacco-dependent regions of the state. The 2026 grant program will provide funding through two primary tracks: the Qualified Agricultural Program (QAP) and the Indirect Compensatory Program (ICP). The QAP primarily serves projects designed to sustain the viability of North Carolina's agricultural economy—especially its tobacco-related segment—by supporting diversification, enhancing profitability, promoting community development, and encouraging skill-building and sustainable natural resource usage. Examples of eligible projects under QAP include initiatives to modernize farm equipment, support cooperatives and farmers' markets, develop value-added agricultural resources, promote local product marketing, or research alternative crops and fuels. The ICP, in contrast, is intended to indirectly compensate entities or groups that have suffered economic losses as a result of declining tobacco markets post-MSA. These projects must be led by organizations proposing services or training programs for former tobacco farmers, displaced workers, or impacted businesses. Documentation must show that losses occurred after 1998 and were not already compensated by the National Tobacco Grower Settlement Trust. ICP projects may assist with worker retraining, retooling of equipment, or new product development outside of tobacco-related use. Eligible applicants include state and local government agencies, nonprofit organizations, U.S. government departments, and private sector entities, provided that their proposed projects serve one or more of the targeted populations. These include communities that are tobacco-dependent, have suffered adverse effects from changes in the industry, or derive a substantial portion of income from agriculture. The Commission emphasizes community-level benefits and encourages group-based applications over individual compensations. Private applicants are advised to contact NCTTFC for clarification before applying. Applicants must submit a completed application and required supporting documents—including a detailed budget, a conflict of interest/tax debt form, and supplemental OpenBook information—via the online portal hosted on the NCTTFC website. Applications are due no later than March 6, 2026. An optional advisory deadline of February 13, 2026, allows applicants to receive preliminary feedback from Commission staff on their proposals. All submissions are evaluated through a multi-step internal and external review process, including scoring summaries and, where necessary, site visits or interviews. Awarded projects are expected to enter contract within six months of approval, with disbursements made post-expense submission on a monthly basis unless otherwise specified. Financial audits, semi-annual progress reports, and a final report are mandatory components of the award terms. Grantees must maintain financial records for five years post-project completion and return unused funds or earned interest to the Commission. A 5% holdback will be retained until the project is fully completed and the final report is approved. Failure to adhere to the scope or financial terms may result in cancellation of the contract and recovery of disbursed funds.

Follow all instructions; ensure documentation and word limits are met; focus on community-level impact, not individual benefit.