Title
SUBJECT: Update on Opioid Settlement Funding
REPORT IN BRIEF
Provide an update to the City Council of revenue and expenditures of Opioid Settlement Funding.
RECOMMENDATION
City Council - Information Only.
Body
DISCUSSION
On April 7, 2025, Council Member Xiong requested an update on revenue received and expenditures from Opioid Settlement.
In 2021, nationwide settlements were reached to resolve all opioids litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal Health, and AmerisourceBergen ("Distributors") and against manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, "J&J"). These National Settlements were finalized, and the distributors will pay up to $21 billion over 18 years, and J&J will pay up to an additional $5 billion over no more than nine years.
Under both the 2021 and 2022 National Settlements, at least 85% of the funds going directly to participating states and subdivisions must be used for abatement of the opioid epidemic, with the overwhelming bulk of the proceeds restricted to funding future abatement efforts by state and local governments.
In 2022, the City Council elected to receive allocated distributions of these settlement funds to be used to combat the opioid epidemic. The City started to receive settlement payments in FY 2022-23 from the opioid settlement and opioid bankruptcies. The City is required to report to the state each year how much we have received, expended, and how we intend to use the settlement funds (see reports attached). We are required to expend and/or encumber funds within 5 years of receipt or 7 years for capital outlay projects.
To date the City has received $483,836.54 in opioid settlement funding and expensed $15,948.80. We have also allocated interest totaling $25,592.99. Expenditures have been for two state approved activities:
1. Drug Awareness Campaign
2. Purchasin...
Click here for full text