Good afternoon!

Last week, we shared updates on the federal funding freeze and its potential impact on grant disbursements. Since then, the Office of Management and Budget (OMB) has rescinded the initial memo, though questions remain about how federal funding priorities may shift moving forward.

We understand there is still uncertainty regarding the federal funding landscape, so we plan to continue the conversation this coming Monday, February 10th at 2 PM EST. Register Here.

Importantly, opioid settlement payments remain unaffected by the federal funding freeze, as they are lawsuit-driven and not tied to federal appropriations.

Meanwhile, another major development has unfolded with Purdue Pharma. The Sackler family and Purdue Pharma have agreed to a $7.4 billion settlement resolving lawsuits over their role in the opioid crisis. The funds will be distributed over the next 15 years, with a focus on opioid treatment, prevention, and recovery programs. Unlike previous settlements, this agreement does not grant the Sacklers complete immunity from civil litigation, meaning additional lawsuits may still proceed. The Appalachian states involved in this settlement and their respective allocations include:

• West Virginia: $55 million
• New York: $250 million
• North Carolina: $150 million
• Pennsylvania: $212 million
• Tennessee: $90 million
• Virginia: $107.4 million

With that in mind, let’s dive into this week’s opioid settlement updates.

Ohio

Transparency Concerns Over Opioid Settlement Funds

The KFF, Johns Hopkins Bloomberg School of Public Health, and Shatterproof database released at the end of last year reveals that nearly half of Ohio’s $158 million in settlement funds received in 2022 and 2023 lacks public accountability. The database shows that Ohio has few reporting requirements for how local governments and state entities use the funds.

The OneOhio Recovery Foundation, the primary body overseeing the distribution of opioid settlement funds in Ohio, voluntarily provides some transparency. However, a significant portion of the money remains unreported. By 2024, these funds had been allocated, but concerns remain over the lack of oversight.

On a national scale, state and local governments received over $6 billion in opioid settlements during 2022-2023. A third of that money has been spent, another third has been set aside for future use, and the final third remains untraceable. Ohio stands out for the high percentage of unaccounted funds, raising concerns about transparency and efficiency in addressing the opioid crisis.

Tennessee

Knoxville City: The Knoxville City Council voted to allocate $1.75 million from Tennessee’s opioid abatement funds to expand the Knoxville Police Department’s (KPD) co-responder program. This program pairs mental health workers with police officers to respond to calls involving substance abuse and mental health crises, aiming to divert individuals from incarceration to treatment resources.

The decision follows a two-week postponement after advocates from the Knoxville HEART group raised concerns about a lack of transparency in how the funds would be used. Some council members and advocates argued the money should go directly to harm reduction programs, drug prevention efforts, or housing assistance rather than the police department.

Police Chief Paul Noel defended the funding, stating that KPD already handles mental health and substance abuse-related calls daily and needs properly trained personnel. Knoxville Mayor Indya Kincannon supported the allocation, assuring that it would not prevent the Metro Drug Coalition from receiving future funding.

Despite opposition, the council approved the proposal, ensuring that funds will support expanding co-responder teams, adding vehicles, and hiring an advocate to connect individuals with recovery services.

Virginia

Wythe County: Virginia Attorney General Jason Miyares led a roundtable discussion at Wytheville Community College focused on fentanyl dangers and overdose deaths. The event gathered law enforcement, civic leaders, and substance abuse recovery specialists to discuss strategies for combating the crisis.

Miyares emphasized the impact of opioid settlement funds, which Virginia received from lawsuits against pharmaceutical companies. These funds are now being used to support substance use treatment programs, prevention efforts, and community education, including teaching children as young as third grade about the risks of fentanyl-laced drugs.

The discussion also highlighted the importance of Narcan, an opioid overdose reversal drug, which is now becoming more widely available. Miyares stressed that Narcan saves lives and gives people struggling with addiction a chance to seek help.

The Attorney General reaffirmed his commitment to ensuring opioid settlement funds are used effectively to address the crisis at the community level, with a focus on harm reduction, treatment accessibility, and public education.

West Virginia

Preston County Receives Opioid Settlement Funds

The Preston County Commission has received $203,800.78 in opioid settlement funds as part of ongoing disbursements from litigation led by the West Virginia Attorney General’s Office against opioid manufacturers and distributors. The commission opted to deposit the new funds into a pre-existing certificate of deposit at Clear Mountain Bank, maintaining an interest rate of 4%.

West Virginia Supreme Court Urged to Revive Landmark Opioid Case

The city of Huntington and Cabell County, West Virginia, have petitioned the state’s Supreme Court to reinstate their $2.5 billion lawsuit against major U.S. drug distributors—Cencora, Cardinal Health, and McKesson—for their alleged role in fueling the opioid crisis.

The lawsuit, initially dismissed in 2022 by a U.S. District Court judge, argues that the companies failed to monitor excessive opioid sales, contributing to widespread addiction and overdose deaths. The case centers on whether opioid sales can be classified as a public nuisance under West Virginia law.

If the state Supreme Court rules in favor of the plaintiffs, the case will return to the 4th U.S. Circuit Court of Appeals for further proceedings. Defense attorneys warned that allowing such claims could lead to widespread litigation against companies producing potentially harmful products.

West Virginia has already secured over $1 billion in opioid settlements, including $400 million from the same distributors. However, Huntington and Cabell County are not eligible for those funds due to their decision to pursue litigation instead of joining the broader settlement.

This case is part of a nationwide legal strategy seeking to hold opioid manufacturers, distributors, and pharmacies accountable, resulting in over $50 billion in settlements to date.

Dauphin County, Pennsylvania — application info. (DUE 2/28)

Orange County, North Carolina — application info. (DUE 2/21)

Weirton, West Virginia — application info. (“[f]unding decisions are made by the Weirton City Council”)

Harrison County, Kentucky

The Harrison County Fiscal Court has issued a Request for Proposals (RFP) for projects aimed at preventing and addressing the impact of the opioid epidemic. Funding is available for organizations focusing on opioid prevention, harm reduction, treatment, and recovery, including support for substance use disorder, polysubstance use, and co-occurring mental health issues.

• Application Period: February 1, 2025 – March 31, 2025
• Funding Period: July 1, 2025 – June 30, 2026

The number of awards and funding amounts will vary annually based on available settlement funds. Interested entities can obtain the full RFP package from the Bluegrass Area Development District or online at Harrison County Fiscal Court News.

Virginia STOP! Grant— application info. (DUE 4/1)

Alabama

Oversight Commission on Settlement Funds

• TBD
• In-person in Montgomery, AL
• Can watch live on their website (choose ‘Room 200’ for location then ‘Oversight Commission on Alabama Opioid Settlement Funds’ for meeting)

You can also watch livestreams and recordings on The Alabama Channel (thanks to the League of Women Voters of Alabama Education Fund)

Georgia

Georgia Opioid Settlement Advisory Commission 

• TBD (late February or early March 2025)

Kentucky

Opioid Abatement Advisory Commission (info here)

• Business Meeting: March, 11 2025, 1pm EST
• In-person located in Frankfort, KY and attendees can give public comment
• Can watch live and recordings on their YouTube channel
• Prevention/Reform/Compliance Subcommittee Meeting: TBD
• In-person located in Frankfort, KY
• Treatment & Recovery Subcommittee meeting: TBD
• In-person located in Frankfort, KY

Maryland

Opioid Restitution Fund Advisory Council (info here)

• TBD
• Meetings are all-virtual. Can watch live via Google Meet & there is usually an opportunity for public comment

New York

Opioid Settlement Fund Advisory Board (info here)

• February 27, 2025, 10am EST
• In-person located in Albany, and attendees can give public comment
• Can watch live and recordings on their website

Monthly ‘Community’ meeting: 4th Wednesday of the month at 12pm

• See this page under ‘Community Input’

Ohio

OneOhio Recovery Foundation Board (info here)

• Full Board Meeting: February 12, 2025, 10:30am EST
• In-person meetings are located in Columbus and are open to the public, but there is usually no opportunity for public comment
• Can watch live and recordings on their website
• Audit & Finance Committee: February 12, 2025, 9:30am EST
• Executive Committee: TBD
• Grant Oversight Committee: TBD
• Personnel Committee: TBD
• Investment Committee: TBD

Regional Information Sessions (see events calendar for most up-to-date info)

• TBD

Pennsylvania

Opioid Misuse and Addiction Abatement Trust (meeting info here)

• Board of Trustees Meeting: February 13, 2025 1:30pm EST
• In-person located in Harrisburg
• All are virtual and can be watched live via Zoom and recordings on YouTube 

South Carolina

Opioid Recovery Fund

• SCORF Board Meeting: March 5, 2025, 10:00am EST (info here)
• Coffee Chat: May 2, 2025, 9:30am EST virtual
• This is held the first Friday of the month and is an opportunity to ask questions and hear announcements about opioid settlement funds
• The SCORF Board will open to public comment during Coffee Chat on May 2, August 1, and November 7. Advanced registration is required to comment. (info here).

Tennessee

Opioid Abatement Council

• Meeting: March 3, 2025 12pm EST (info here)
• Next in-person located in Chattanooga, TN. Meetings are also available to watch via Teams – All attendees can give public comment
• Recordings and meeting minutes are available on their website

Virginia

Opioid Abatement Authority (meeting info here)

• Grants Committee: February 21, 2025, 4:00pm EST (info here)
• Finance Committee: TBD
• Board Meeting: TBD

West Virginia

West Virginia First Foundation, Inc. (meeting info here)

• Board of Directors meeting: March 2025 TBD
• Meetings are held on the first Thursday of the month