Opioid Settlement Funds Still Sitting in Bank Accounts Three Years Later Across West Michigan Counties

Michigan Communities Hold Millions in Opioid Settlement Money as State AG Prepares Spring Report

More than three years after Michigan communities began receiving millions of dollars to fight the opioid epidemic, some have yet to spend a dime.

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

The funds began arriving in January 2023. While experts say the funds are beginning to make a difference, the sluggish pace of spending in some communities has frustrated some state leaders.

What the Money Is For

Settlement funds are meant to help mitigate the continued harm of the opioid crisis, which as recently as 2023 killed nearly 3,000 Michiganders. An estimated 80% of those deaths were opioid-related.

And 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.

Despite the crisis, some local governments are only now preparing to begin disbursing funds to community groups that help those battling addiction.

Grand Traverse County Still Has Millions Unspent

One that has yet to spend any funds is Grand Traverse County, where Traverse City is located, which 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, Grand Traverse County Health Officer Mike Lahey told Bridge Michigan.

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

The county's spending was slowed by a failed first attempt to create a plan for the money, said Lahey. Now, a plan is in place and a task force formed.

"I hope to have requests for proposals out in May," he said.

County After County Still Waiting to Distribute

It's unclear how much of the settlement funds distributed to Michigan communities since 2023 have been spent. A 2024 investigation provided the first statewide accounting of how communities were handling those funds.

That investigation found that more than 40% of communities had not spent any funds, with about $90 million sitting in bank accounts. That closely matched the findings of a survey conducted in the spring of 2025 by the Michigan Association of Counties.

Of the 36 counties that responded, 40% had yet to open their checkbooks. That was an improvement from 2024, when a similar survey found 51% hadn't spent money.

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.

Lenawee County Considering Proposals in April

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 Expects First Spending in 2026

Isabella County, which has $1.1 million in settlement funds in the bank, expects to spend its first settlement funds in 2026.

Schoolcraft County Just Forming Committee

Meanwhile, Schoolcraft County in the Upper Peninsula is just now forming a committee to make spending recommendations.

The City of Warren Had Nearly $3 Million Unspent

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. "My goal is to find a way of generating continuous revenue that can be dedicated to addressing these ongoing needs."

State Officials Push for Action

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, planning time has been adequate, Poland told Bridge. We should be using those funds.

A Success Story

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, commonly known by the brand name Narcan, which is used to revive people who have overdosed on opioids.

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.

Concerns About How Funds Are Being Used

Jonathan Stoltman of the Grand Rapids-based 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 do not 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.

State AG to Release Official Report This Spring

Michigan soon may have a more authoritative accounting. 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.

Community Leaders Express Frustration

Pam Lynch of the Traverse City-based Harm Reduction Michigan said the process has been very frustrating for people who have been doing effective work for a long time.

I hear the criticism. What are we doing this money should be out, said Lynch. I hear the criticism.

Lahey said he gets it. There are only so many chips to pass around the table, he 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.

What's Next

The county health officer said the process has moved too slowly, said Pam Lynch. It's been a very frustrating process for people who have been doing effective work for a long time.

With requests for proposals expected out in May, Grand Traverse County officials hope to finally begin distributing funds to help address the ongoing opioid crisis in the region.