Nessel’s office releases first statewide accounting of opioid settlement spending
Michigan Attorney General Dana Nessel unveiled a new public tracking system on May 14, 2026 that reveals local governments across the state have spent only 17.7 percent of the opioid settlement funds they have received.
The preliminary report shows cities, counties, and townships collected $214 million in settlement money between January 2023 and December 2025. Of that total, $38 million was spent and $176 million remains in local bank accounts.
"The opioid epidemic has caused immense damage to Michigan families and communities," Nessel said in a press release. "By providing spending guidance and accessible data, we are helping ensure that settlement funds remain focused on supporting recovery, prevention, and healing across our state."
The numbers behind the delay
The report, produced by the Attorney General’s Office, marks the first official statewide accounting of how local governments use opioid settlement dollars. Bridge Michigan reported in 2024 that the state was not tracking these expenditures at all, leaving residents with no way to know where the money was going.
According to the new data:
- 258 local governments reported their spending to the Attorney General’s Office.
- 75 of those jurisdictions (29 percent) had spent none of their funds as of December 10, 2025.
- Twelve counties, all in northern Michigan or the Upper Peninsula, had not spent any settlement money.
- Among cities, Warren ($2.7 million in the bank) and Farmington Hills ($1.7 million) had not spent funds by year end.
Amy Dolinky, technical adviser for opioid settlement funds at the Michigan Association of Counties, told Bridge Michigan that some of the unspent counties completed planning processes and are preparing to disburse money in 2026.
"We had advised local governments to think through sustainable funding, and with that in mind, a lot of governments put more planning on the front end," Dolinky said. "We will see more spending going forward."
New rules force transparency
The tracking system stems from a revised State-Subdivision Agreement for Opioid Settlements negotiated in July 2025 between the Department of Attorney General and 86 Michigan Litigating Local Governments.
The revised agreement requires an annual report from local governments. It also enables the Attorney General’s Office to issue general guidance about allowable expenditures and to request information from participating communities.
Nessel’s office released two resources alongside the report:
- Settlement Spending Guidance and Non-Remediation List: A framework outlining recommended uses of funds and a list of expenditures that likely do not qualify as opioid remediation.
- Opioid Received/Expended Report: A public dashboard compiling data on how much funding each local government received and how it was spent.
Why the money matters
Michigan is slated to receive nearly $1.8 billion from opioid settlements by 2040. Half of that amount goes directly to county, city, and township governments. The rest goes to the state for drug prevention services.
The state has allocated more than $130 million through its fiscal year 2026 budget for opioid abatement efforts, according to a report from the Association of State and Territorial Health Officials.
The urgency for accountability remains high. Michigan recorded about 1,700 opioid overdose deaths in 2025, the lowest figure since 2013. That is a sharp decline from 3,096 deaths in 2021. The Michigan Opioid Task Force attributes part of the decline to widespread naloxone distribution. The state has distributed more than 1.7 million naloxone kits since 2020 and recorded more than 34,000 overdose reversals.
Battle Creek puts settlement funds to work
Not every community is sitting on its money. Battle Creek used a combination of federal Community Development Block Grant funds and locally controlled opioid settlement funds to transform a vacant property into recovery housing.
The rehabilitation of a five-unit apartment building at 614 Capital Ave NE cost $862,000. The project used $328,266 in opioid settlement funds and $533,734 in federal CDBG funding, according to local reporting.
Brandi Clanton, executive director of Recovery Services Unlimited, operates the new transitional housing unit.
"Because housing is such an incredible need in our community, and many of our individuals have experienced barriers to housing, this really is a lifeline for them," Clanton said.
The building provides individual and group therapy, case management, and recovery coaching alongside stable shelter. Clanton’s organization also operates three other recovery homes that house up to 27 people at a time in a 90-day intensive program.
What comes next
The preliminary report will continue to be updated as additional local governments submit their spending data to the Attorney General’s Office. The Non-Remediation List will also be updated regularly to clarify what qualifies as opioid remediation.
Michigan’s approach of combining clear spending guidance with public reporting creates multiple layers of accountability. Local governments know what is expected. Citizens can see where money is going. The Attorney General’s Office maintains oversight authority to investigate concerns.
The question now is whether other states will follow Michigan’s lead. Tens of billions of dollars in opioid settlements are flowing nationwide. The difference between robust transparency and minimal oversight could determine whether these resources deliver on their promise to help communities heal.