More Than $90 Million Sitting in Bank Accounts

More than three years after Michigan communities began receiving millions of dollars from a national opioid lawsuit settlement, some local governments have yet to spend a single dime.

While the state has distributed $131 million in settlement funds this budget year for drug prevention, treatment and recovery services, a 2024 investigation found that more than 40% of communities had not spent any funds, with approximately $90 million still sitting in bank accounts.

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

The funds began arriving in January 2023, but the slow pace of spending has frustrated state leaders and community advocates alike.

'Now What?'

Grand Traverse County, home to Traverse City, has about $2 million from the settlement in the bank and is expected to receive $6.2 million overall. It's taken time to figure out how to use the one-time funds to best address the crisis, according to Grand Traverse County Health Officer Mike Lahey.

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

Lahey said the process has moved too slowly, adding that county officials initially failed to create a plan for the money. Now, a plan is in place and a task force has been formed. "I hope to have (requests for proposals) out in May," he said.

Pam Lynch of Harm Reduction Michigan described the process as "very frustrating for people who have been doing effective work for a long time."

"There are only so many chips to pass around the table," Lahey 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."

Deliberation or Delay?

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

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, she told Bridge Michigan that "planning time has been adequate."

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

Success Stories

Despite the slow spending at the local level, the state has seen success with settlement funds. Since 2023, Michigan has spent $14.8 million in settlement money for 424,882 kits of naloxone, commonly known by the brand name Narcan.

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 reachable for treatment," Poland said. "You don't have a chance for recovery when someone overdoses and dies."

Mixed Spending Approaches

Stoltman of the Opioid Policy Institute is eager for settlement funds to be spent, but he also worries that some communities have used the funds for things that don't address the crisis.

Recently, Flint spent $25,000 in settlement funds to pay for a sign-language interpreter at city council meetings. Farmington Hills used $120,000 to backfill its budget, arguing it was to replace money spent on the drug crisis in the past.

"The best case scenario is that folks (who have yet to spend settlement dollars) are scared to mess it up," Stoltman said. "But in your fourth year, you can't be too scared to spend it."

Communities Still Planning

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," according to Logan Bailey, director of public and governmental affairs for the county.

"We are still in a planning/assessing/collecting RFPs stage," Bailey said in an email to Bridge Michigan.

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.

Mayor Stone added: "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.

What's At Stake

The opioid crisis continues to impact Michigan. As recently as 2023, the crisis killed nearly 3,000 Michiganders. An estimated 80% of those deaths were opioid-related.

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.

What's Next

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.

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.

One success story: Since 2023, Michigan has spent $14.8 million in settlement money for 424,882 kits of naloxone. That effort is credited at least in part for the decline of almost 1,000 overdose deaths in Michigan from 2023 to 2024.