Senator seeks end to federal smoke shop grants

Monday, January 24th 2000, 12:00 am

By: News On 6

(Washington-AP) -- A Senate report says the Clinton Administration is providing money for Indian businesses in Oklahoma and Nevada that sell cheap cigarettes -- even while it spends billions of dollars to curb smoking.

Since 1997, the Federal Housing Department has given four-point-two million dollars in grants to construct five Oklahoma convenience stores and one Nevada smoke shop run by tribes. The shops can offer discounted cigarettes because of their tax-free status.

Missouri Senator Christopher Bond is asking Housing Secretary Andrew Cuomo to stop the practice.

But housing spokesman David Egner says only Congress can ban tobacco sales in stores that get federal funds.