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An Updated Look at State Opioid Settlement Spending Decisions  

Where Are States Now in the Opioid Settlement Spending Process?

States are currently in the process of distributing settlements from various opioid-related lawsuits, with each state at a different stage in the process of receiving funding, setting up decision-making processes, allocating funding, and reporting on spending and investment outcomes.

Previously, in June of 2023, NASHP published a brief of publicly reported information on state opioid settlement plans and appropriations made to date, highlighting investments made with settlement funding and examples of how states are planning to allocate their funding across the substance use care continuum. Now, in the updated State Opioid Settlement Spending Tracker, NASHP outlines which states have announced awards from settlement funding or published priorities to guide settlement spending, as well as context for how each state has set up their decision making and spending processes.

Looking across states’ initial settlement investments, many state priorities and funding awards reflect a broad commitment to addressing priorities across the continuum of allowable prevention, treatment, recovery, and harm reduction abatement strategies. Connecticut, for example, identified seven different funding priorities that include increasing access to medications for opioid use disorder (MOUD), improving data infrastructure, increasing the addiction workforce, and strengthening prevention strategies, among others.

Given the longer-term time horizon of settlement funds and lack of restrictions that often accompany federal grants, many states have also chosen to prioritize investments in treatment infrastructure, including brick-and-mortar facilities, data capabilities, and workforce. Wisconsin and Indiana both awarded a portion of initial settlement funds to recovery housing, while Idaho’s Behavioral Health Council highlighted increasing the supply of behavioral health professionals as its top priority. 

More specific spending priorities have also been driven by identified gaps in service delivery or emerging challenges in the opioid crisis. Harm reduction has been a major priority for initial spending decisions, with early investments in many states reflecting the urgent need to prevent overdoses among populations most at risk of overdose and going toward the purchase of naloxone, fentanyl test strips, or syringe service materials not eligible for purchase with federal funds. In Vermont, the Opioid Settlement Advisory Committee found that overdose deaths primarily occurred in people with no connection to the treatment system, driving investments in naloxone distribution, mobile opioid medication units, outreach workers, fentanyl test strips, and wound care telehealth consultation. Additional strategies to expand access to services and address emerging challenges include housing supports and other wrap-around services, expanding access to MOUD in correctional settings, and contingency management for stimulant use.  

NASHP’s New Tracker: State Opioid Settlement Spending Decisions

As states continue to implement processes for identifying priorities, awarding funding, and tracking spending, an increasing number of states have announced spending decisions or priorities for settlement funding. As of May 2024, at least 35 states have awarded settlement funds [1], while an additional 25 states announced priorities or recommendations for spending [2]. NASHP’s tracker provides a snapshot of which states fall into each category, and state one-pagers provide additional detail on how the money was spent, recommendations for spending, and other information such as settlement-related laws, agreements, processes, reports, and spending dashboards. Additionally, the tracker provides information on how each state has set up their decision-making and spending processes, highlighting which entity (e.g., state, local, etc.) has authority over the majority of settlement funding.

State Tracker: State Opioid Settlement Spending Decisions

NASHP’s state opioid settlement spending tracker was compiled based on information from publicly available legislation, state memorandums or executive orders, state websites, and press releases, as well as supplemental interviews with state officials with a role in administering opioid settlement funding. Because this is a dynamic policy space, and many states are in the process of making plans for distribution and awarding settlement funding, information will continue to emerge regarding best practices for settlement spending and example state investments. Settlements pose a unique opportunity for states to invest across the substance use continuum of care, ultimately working to build up infrastructure for substance use prevention, harm reduction, treatment, and recovery systems.

Footnotes

[1] Announced awards: A designated state agency or statewide opioid abatement fund has published its intention to allocate a dollar amount to a specific abatement program, activity, strategy, service, or support OR an appropriation of settlement funds has been made through a legislative process. Due to the nature of budgeting and procurement processes, this funding could be in the process of being budgeted, obligated, expended, or disbursed.

[2] Published recommendations: A state agency, abatement council, or advisory council has published priority areas of focus or recommended strategies to address the opioid crisis with settlement dollars, but may or may not have allocated settlement funding yet.

Acknowledgments

Maddy Hraber, Katie Greene, and Rebekah Falkner contributed to the development of this tracker, and Sam Mermin and Miriam Pearsall contributed to prior versions while working at NASHP. NASHP’s national opioid settlement state tracker and ongoing work to support state leaders in opioid settlement planning and spending are supported by the Foundation for Opioid Response Efforts (FORE).

If you have any information that is not reflected in the tracker, please email Maddy Hraber at mhraber@nashp.org.

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