Michigan Communities Still Sitting on Millions in Opioid Settlement Funds Three Years Later

By Michigan Capitol

More than three years after Michigan communities began receiving millions of dollars from a national opioid lawsuit settlement, some local governments are only now preparing to begin disbursing funds to community groups that help those battling addiction, according to a new report from Bridge Michigan.

Michigan is set to receive at least $1.6 billion over 18 years from a national lawsuit settlement with drug manufacturers, distributors and pharmacies that were deemed partly responsible for the opioid crisis. The state is getting half that money, with the rest split between Michigan counties, townships and cities.

The funds began arriving in January 2023. While experts say the funds are beginning to make a difference, the sluggish pace of spending in some communities, from the wine country of Grand Traverse County to mid-Michigan's Eaton County, has frustrated some state leaders.

"If there was some deliberative process that took three years, that's too long," said Jonathan Stoltman, of the Grand Rapids-based Opioid Policy Institute. "Money needs to get out the door."

Nearly $90 Million Still Unspent

A 2024 Bridge investigation provided the first statewide accounting of how communities were handling those funds. That investigation found that more than 40% of communities had not spent any funds, with about $90 million sitting in bank accounts.

That closely matched the findings of a survey conducted in the spring of 2025 by the Michigan Association of Counties. Of the 36 counties that responded, 40% had yet to open their checkbooks.

That was an improvement from 2024, when a similar survey found 51% hadn't spent money.

Michigan soon may have a more authoritative accounting. The Michigan Department of Attorney General has asked counties, townships and cities receiving opioid settlement funds to report how they've been spent. Those findings are expected to be released this spring, according to Danny Wimmer, a spokesperson for Attorney General Dana Nessel.

Communities Yet to Distribute Funds

Eaton County is among communities yet to distribute funds. The county, which is receiving about $300,000 annually, has "developed a strategic plan and a community assessment to identify gaps in mitigation efforts," Logan Bailey, director of public and governmental affairs for the county, said in an email to Bridge Michigan.

"We are still in a planning/assessing/collecting RFPs stage."

Officials in Lenawee County, which borders Ohio, will consider $1.25 million in proposals for its first opioid settlement spending in April, according to Community Development Coordinator Francine Zysk.

Isabella County, which has $1.1 million in settlement funds in the bank, expects to spend its first settlement funds in 2026.

Meanwhile, Schoolcraft County in the Upper Peninsula is just now forming a committee to make spending recommendations.

The city of Warren had $2.9 million in opioid settlement funds in the bank as of October, and had not disbursed any.

"There are those who are anxious to push dollars out without fully considering community needs, process, best practices, or long-term impact," Mayor Lori Stone said in an October news release. "Opioid use, substance use disorder, and addiction will continuously affect our community. My goal is to find a way of generating continuous revenue that can be dedicated to addressing these ongoing needs."

Warren officials did not respond to a request for an update on opioid settlement spending.

Deliberate or Deliberate?

Cara Poland, chair of the Michigan Opioid Advisory Commission, which makes recommendations to the Legislature, agrees that communities should be thoughtful about how they spend settlement dollars. But after more than three years, "planning time has been adequate," Poland told Bridge Michigan. "We should be (using) those funds."

In Grand Traverse County, spending was slowed by a failed first attempt to create a plan for the money, said county health officer Mike Lahey. Grand Traverse County has about $2 million from the settlement in the bank and is expected to receive $6.2 million overall.

Now, a plan is in place and a task force formed.

"I hope to have (requests for proposals) out in May," he said.

The process has moved too slowly, said Pam Lynch, of the Traverse City-based Harm Reduction Michigan.

"It's been a very frustrating process for people who have been doing effective work for a long time," said Lynch. "I hear the criticism. 'What are we doing — this money should be out.'"

Lahey said, "And I get it."

"There are only so many chips to pass around the table," Lahey told Bridge Michigan. "It was a new source of money with new types of parameters around it."

"It took time to figure out how to use the one-time funds to best address the crisis," Lahey said. "I think some localities, while appreciating (the funds), were like, 'Now what?'"

A State in Crisis

Despite the crisis, some local governments are only now preparing to begin disbursing funds to community groups that help those battling addiction.

An estimated 80% of those deaths were opioid-related. As recently as 2023, nearly 3,000 Michiganders died from drug overdoses. While overdose deaths declined by a third to 1,938 in 2024, the last year for which the state has complete data, the number of Michigan residents dying from drugs was still higher than the number who died in car crashes.

More than 2,000 Michiganders died from drug overdoses in 2024.

What Are the Funds For?

Settlement funds are meant to help mitigate the continued harm of the opioid crisis. They can be used for a variety of purposes including treatment, prevention, education, and harm reduction efforts.

The Michigan Opioid Advisory Commission makes recommendations on how the state should allocate its portion of the settlement funds, but individual communities receive their own share and have discretion over how to use it.

Looking Ahead

With the Attorney General's office expected to release a comprehensive accounting of how settlement funds have been spent this spring, Michigan communities will have a clearer picture of where the money has gone and where gaps remain.

The state continues to push for communities to use these funds effectively, as the opioid crisis remains a leading cause of death in Michigan.

"What we're seeing is that communities are taking their time," said one health official who asked not to be named. "But after three years, we need to see these funds working to help our communities."

The full accounting from the Attorney General's office should provide valuable insights into which communities have been most effective and which still have work to do.

Sources:

  • Bridge Michigan: Three years in, funds to fight opioids still unspent in some Michigan counties - https://bridgemi.com/michigan-health-watch/three-years-in-funds-to-fight-opioids-still-unspent-in-some-michigan-counties/
  • AP News: Three years in, funds to fight opioids still unspent in some Michigan counties - https://apnews.com/article/michigan-opioid-settlement-funds-communities-985fd0d7e0822cbce018a16862dfef71
  • Newsday: Three years in, funds to fight opioids still unspent in some Michigan counties - https://www.newsday.com/news/nation/michigan-opioid-settlement-funds-communities-e98056
  • WinkNews: Three years in, funds to fight opioids still unspent in some Michigan counties - https://www.winknews.com/news/international/three-years-in-funds-to-fight-opioids-still-unspent-in-some-michigan-counties/article_11cba138-7b87-54ad-a140-c905d713d06a.html
  • 10TV: Three years in, funds to fight opioids still unspent in some Michigan counties - https://www.10tv.com/article/syndication/associatedpress/three-years-in-funds-to-fight-opioids-still-unspent-in-some-michigan-counties/616-87f6935b-c26c-4822-aac4-d2c4702f6478