Settlement payments that back tobacco bonds would be cut by $160 million over a four-year period if the House approves a bill as early as this week, according to the Congressional Budget Office. But market participants think the legislation would not hurt, and possibly could even slightly benefit, tobacco bonds.

The House Oversight and Government Reform Committee approved the bill by a voice vote Wednesday after the Energy and Commerce Committee voted 39 to 13 to approve it on March 4. The measure now moves to the full House for consideration, with 166 members of Congress signed on as co-sponsors.

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