More Than $90 Million Unspent as Communities Grapple with How to Deploy Opioid Crisis Money

More than three years after Michigan communities began receiving millions of dollars from a national opioid lawsuit settlement, some have yet to spend a dime. The sluggish pace of spending has frustrated state leaders and advocates who say the money should be flowing to help those battling addiction right now.

Michigan is set to receive at least $1.6 billion over 18 years from the settlement with drug manufacturers, distributors and pharmacies deemed partly responsible for the opioid crisis. The state receives half that money, with the rest split between Michigan counties, townships and cities. The funds began arriving in January 2023.

Deliberation Takes Too Long

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

Stoltman's organization represents communities throughout the state that have been working on the opioid crisis for years. Despite the crisis, some local governments are only now preparing to begin disbursing funds to community groups that help those battling addiction.

Grand Traverse County Still Waiting

One community that has yet to spend any funds is Grand Traverse County, where Traverse City is located. The county has about $2 million from the settlement in the bank and is expected to receive $6.2 million overall.

"It was a new source of money with new types of parameters around it," Grand Traverse County Health Officer Mike Lahey told Bridge Michigan. "I think some localities, while appreciating (the funds), were like, 'Now what?'"

Lahey said a plan is now 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 Harm Reduction Michigan. "It's been a very frustrating process for people who have been doing effective work for a long time," Lynch said. "I hear the criticism. 'What are we doing — this money should be out.' And I get it."

Lahey acknowledged the frustration. "There are only so many chips to pass around the table," he said. "It sounds like a lot of money. But when you start talking about building programs and hiring people, a million dollars can go fast."

Statewide Picture

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 to the 2025 survey, 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.

Other Communities in the Same Boat

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.

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

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.

Balance Between Careful Planning and Urgent Need

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.

"We should be (using) those funds," Poland said.

Success Story: Narcan Distribution

One success story: Since 2023, Michigan has spent $14.8 million in settlement money for 424,882 kits of naloxone, commonly known by the brand name Narcan, which is used to revive people who have overdosed on opioids.

Organizations can request the kits for free from the state, and in many communities, drug users can then pick up free kits in vending machines and converted newspaper boxes. That effort is credited at least in part for the decline of almost 1,000 overdose deaths in Michigan from 2023 to 2024.

"When someone uses naloxone, they may be saved," Stoltman said. "But we need more than just naloxone. We need treatment, we need recovery services, we need prevention programs."

The Ongoing Crisis

The funds are meant to help mitigate the continued harm of the opioid crisis, which as recently as 2023 killed nearly 3,000 Michiganders. An estimated 80% of those deaths were opioid-related.

And 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.

Looking Ahead

With the state's half of settlement dollars, the Michigan Department of Health and Human Services is distributing $131 million this budget year for drug prevention, treatment and recovery services around the state.

The state continues to balance the need for careful planning with the urgent reality that lives are being lost every day to opioid overdoses. As the spring report from the Attorney General's office approaches, it will provide a clearer picture of how communities across Michigan are handling this critical funding.

For now, advocates say the focus should be on getting the money to those who need it most, not just counting the chips on the table.

"The money should be out," Stoltman said. "People are dying. We can't wait three years to figure this out."