Caldwell seeks 'TSET reset' to expand OHLAP, but some concerned

A top Republican lawmaker in the Oklahoma House wants to redirect TSET funds to pay for tuition-free college, but others worry it will hurt public health efforts.

Mar. 18, 2026 at 6:11am

House Appropriations and Budget Committee Chairman Trey Caldwell (R-Lawton) is pushing a proposal to amend the Oklahoma Constitution and redirect most of the Tobacco Settlement Endowment Trust's (TSET) annual earnings to expand the Oklahoma Higher Learning Access Program (OHLAP), which offers tuition-free college to qualifying students. While Caldwell argues this would provide more educational opportunities, some lawmakers and TSET officials are concerned it would dramatically reduce funding for public health initiatives across the state.

Why it matters

TSET was established by Oklahoma voters in 2000 to invest in projects and initiatives that improve the health of the state. Over the past 25 years, it has distributed tens of millions in grants and contracts to schools, nonprofits, research projects, and advertising campaigns aimed at advancing public health. Caldwell's proposal to redirect most of TSET's funding to OHLAP scholarships raises concerns that these important public health efforts could be significantly reduced.

The details

Caldwell's legislation, HJR 1077, would ask voters to amend the Oklahoma Constitution to eliminate the TSET Board of Directors and change how the fund's annual earnings are allocated. While 20% of the earnings would be deposited into the constitutionally protected corpus, 80% would be transferred to the State Regents for Higher Education to pay for OHLAP scholarships. Any earnings beyond what's needed to fully fund OHLAP would go to the Education Reform Revolving Fund. Caldwell says this could allow every Oklahoma student to attend college, vo-tech, or an apprenticeship for free within 8 years.

  • Caldwell filed HJR 1077 and HB 4003 during the 2026 legislative session.
  • If approved by the Legislature, Caldwell's proposal would trigger a public vote on a state question.

The players

Trey Caldwell

Republican chairman of the Oklahoma House Appropriations and Budget Committee, who is pushing the 'TSET reset' proposal to redirect most of the fund's earnings to OHLAP scholarships.

Chuck Hall

Republican chairman of the Oklahoma Senate Appropriations and Budget Committee, who is the Senate author of Caldwell's TSET-related legislation.

Thomas Larson

Director of public information for TSET, which has argued the fund has diligently carried out its mission to invest in projects and initiatives that improve the health of Oklahoma.

Lonnie Paxton

Republican Oklahoma Senate President Pro Tempore, who says he will review Caldwell's proposal more deeply if it reaches the upper chamber.

Jacob Rosecrants

Democratic Oklahoma state representative who opposes Caldwell's proposal, saying it follows 'kind of a pattern' of lawmakers wanting to 'tap TSET for a long, long time.'

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What they’re saying

“TSET was established by Oklahoma voters with a mission to invest in projects and initiatives that improve (the) health of our state. TSET has diligently carried out the mission for over 25 years, including the recently announced $150 million in TSET Legacy Grants — the largest health initiative of its kind in state history.”

— Thomas Larson, TSET director of public information

“Horrible idea. The beautiful thing about TSET is that it is separate. It is aside. There is no legislative control.”

— Mark Mann, Oklahoma state senator

“If we want to fund stuff, we need to figure out how to raise revenue, not dip into things like that.”

— Mark Mann, Oklahoma state senator

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This proposal to redirect TSET funds toward OHLAP scholarships has sparked a debate over whether the money would be better used to expand educational opportunities or maintain critical public health initiatives across Oklahoma. While increasing college access is appealing, some lawmakers are concerned it would come at the expense of TSET's longstanding mission and proven track record of improving the state's health.