Official Site of The State of New Jersey
Opioid Settlement Funds
What are the national opioid settlement funds?
The opioid epidemic in the United States has resulted in a complex array of lawsuits across the country against pharmaceutical companies and other entities implicated in the crisis, including legal actions taken by states, counties, cities, Native American tribes, and other public entities.
Considering only those matters that have been fully resolved, New Jersey and its local governments will be paid more than $1.1 billion through 2038 pursuant to settlement agreements with opioid manufacturers, distributors, and retailers. New Jersey may also secure additional recoveries through ongoing litigation. The State will receive half of the funds and the other half will be allocated directly to 262 local government entities—all 21 counties and those municipalities with populations above 10,000).
The vast majority of the funds are intended for state and local opioid abatement programs focused on treatment, prevention, and other strategies to combat the opioid epidemic and the harms it inflicts on New Jerseyans.
Which local governments received the funds in New Jersey?
A full list of counties and municipalities receiving settlement funds can be accessed here.
How can the funds be spent?
The national opioid settlement agreements, an Attorney General’s memorandum of agreement, and state law govern the approved uses of the settlement funds.
The national opioid settlement agreements, which include overlapping provisions, each contain substantively identical language requiring that the settlement funds be used for “Opioid Remediation,” which is defined as “care, treatment, and other programs and expenditures…designed to (1) address the misuse and abuse of opioid products, (2) treat or mitigate opioid use or related disorders, or (3) mitigate other alleged effects of, including on those injured as a result of, the opioid epidemic.” The settlement agreements also include a non-exhaustive list of approved uses that fall within the definition of opioid remediation.
The Attorney General’s memorandum of agreement with local governments reference the same “Approved Uses” identified in the national settlements. Additionally, N.J.S.A. 26:2G-39(e) provides a list of 15 enumerated uses which overlap significantly with the approved uses outlined in the settlement agreements.
Taken together, these binding rules require that an overwhelming majority of the settlement funds must be utilized to address opioid use disorder and any co-occurring substance use disorders or mental health conditions through evidence-based or evidence-informed practices or strategies, including:
- Treatment
- Supporting the treatment of opioid use disorders
- Supporting individuals in treatment and recovery and their families
- Providing connections to care for people who have, or at risk of developing, opioid use disorder
- Addressing the needs of criminal justice-involved people with opioid use disorders
- Addressing the needs of pregnant or parenting women and their families, including babies with neonatal abstinence syndrome
- Prevention
- Preventing over-prescribing and ensuring appropriate prescribing and dispensing of opioids
- Preventing misuse of opioids
- Preventing overdose deaths and other harms (harm reduction)
- Other Strategies
- Education and provision of wellness and support services for first responders
- Supporting efforts to provide leadership, planning, and coordination to abate the opioid epidemic
- Supporting training to abate the opioid epidemic
- Supporting opioid abatement research
A relatively small amount of the funds—no more than five percent—may be used for other purposes such as attorneys’ fees, litigation costs, or costs related to administering the settlement agreements, subject to documentation and public reporting requirements for such uses. In addition, the settlement funds must be used to supplement and not supplant federal, state, county, or municipal funds that otherwise would have been used for approved uses, which means that the state and local governments may not cover the cost of already existing programs using the opioid settlement funds. Rather, they must establish new evidence-based or evidence-informed practices or strategies.
How can I find out how my county or local government is spending the funds?
State law designates the Department of Human Services (DHS) as the lead state agency for purposes of directing the disbursement and allocation of the State’s share of national opioid settlement funds in consultation with the Opioid Recovery and Remediation Fund Advisory Council, with an emphasis on supporting evidence-based or evidence-informed programs and strategies and consideration of equitable access for underserviced communities. Similarly, DHS is required to ensure, in consultation with OSC and the Attorney General, that the use of settlement funds by local governments complies with the approved uses outlined above.
At least annually, by September 1 of each year, local governments are required to submit reports to DHS detailing the funds received, programs approved, and funds expended for the preceding state fiscal year. By October 1 of each year, DHS aggregates those responses in a report. Also, by October 1 of each year, DHS is required to publish a similar report detailing, for the preceding fiscal year, the receipt, allocation, and expenditure of the State’s portion of the settlement funds. These reports can be found here.
Additionally, the Opioid Recovery and Remediation Fund Advisory Council reviews proposals, data, and analyses, and engages with stakeholders and community members to develop and provide recommendations to be made publicly available on the allocation and distribution of the State’s share of proceeds from national opioid litigation resolutions. In February 2024, the Advisory Council released a Funding Recommendations report. The report can be accessed here. If you would like to submit a letter or statement to the Council, you can send it to OpioidSettlement@dhs.nj.gov.
Similarly, each county is required to establish an advisory council to provide input, advice, and recommendations on the disbursement of funds, and if requested by a municipality within the county, to do the same for that municipality. If you would like to contact a county advisory council, please refer to the county’s website for information.
What should I do if I suspect government waste of opioid settlement funds?
As always, OSC welcomes tips. You can report suspected fraud, waste, or abuse relating to the expenditure of national opioid settlement funds either through OSC’s online form, via email to comptrollertips@osc.nj.gov, or by calling OSC’s hotline at 1-855-OSC-TIPS (672-8477).
Where can I find additional resources?
Waste or Abuse
Report Fraud
Waste or Abuse
