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Opioid Settlement Funds Still Unspent in Some West Michigan Counties Three Years Later

More than three years after Michigan communities began receiving millions from an opioid lawsuit settlement, some counties including Grand Traverse and Eaton have yet to spend any of the funds, leaving millions sitting in bank accounts while the crisis continues.

West Michigan State News6 min read6 sources

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

While the state of Michigan receives $800 million over 18 years from the settlement — half of the total $1.6 billion — the rest is split between counties, townships, and cities across the state. The funds began arriving in January 2023, yet communities from Grand Traverse County in the north to Eaton County in mid-Michigan are still in planning phases.

The Crisis Continues

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 percent 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.

Slow Spending in West Michigan

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. Grand Traverse County Health Officer Mike Lahey told Bridge Michigan that it has taken time to figure out how to use the one-time funds to best address the crisis.

"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."

Eaton County, which is receiving about $300,000 annually, has developed a strategic plan and a community assessment to identify gaps in mitigation efforts. The county is still in a planning stage, according to Logan Bailey, director of public and governmental affairs.

Similarly, Mason County officials are in the early stages of determining how funds will be used. A county opioid steering committee formed in February is tasked with developing recommendations for spending but does not have final authority over how the money will be allocated.

Statewide Accounting Shows Delays

A 2024 Bridge investigation provided the first statewide accounting of how communities were handling those funds. That investigation found that more than 40 percent 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 percent had yet to open their checkbooks. That was an improvement from 2024, when a similar survey found 51 percent hadn't spent money.

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.

Other West Michigan Counties Also Hesitant

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. Mayor Lori Stone said in an October news release: "There are those who are anxious to push dollars out without fully considering community needs, process, best practices or long-term impact."

Balancing Deliberation with Need

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: "Planning time has been adequate. We should be using those funds."

In Grand Traverse County, spending was slowed by a failed first attempt to create a plan for the money. Now, a plan is in place and a task force has been formed. County health officer Lahey hopes to have requests for proposals out in May.

The process has moved too slowly, said Pam Lynch of Harm Reduction Michigan based in Traverse City. "It's been a very frustrating process for people who have been doing effective work for a long time," Lynch said. "I hear the criticism. What are we doing — this money should be out."

Lahey acknowledged the frustration. "And I get it," he said. "There are only so many chips to pass around the table." He added that while it sounds like a lot of money, when you start talking about building programs and hiring people, a million dollars can go fast.

State Efforts Show Some Success

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.

Jonathan Stoltman of the Grand Rapids-based Opioid Policy Institute is eager for local communities to start spending their funds. "If there was some deliberative process that took three years, that's too long," Stoltman said. "Money needs to get out the door."

What Communities Can Do With Funds

The settlement funds can be used for a variety of purposes including treatment services, prevention programs, recovery housing, education and outreach, and harm reduction efforts. However, local officials must first create spending plans and receive approval from the state before disbursing any money.

This process has created delays across the state, with communities ranging from Grand Rapids to Kalamazoo to Traverse City still determining how to best use funds that have been available for three years.

The Michigan Opioid Advisory Commission continues to monitor spending and provide recommendations to ensure funds are used effectively to address the ongoing crisis.

Looking Ahead

As the state prepares to release its official accounting of settlement fund spending, it remains to be seen how much of the money has been spent and where. For West Michigan communities still in planning phases, the pressure mounts to move forward with spending plans while balancing the need for thoughtful consideration with the urgency of the opioid crisis.

The debate continues over whether communities have spent too much time deliberating or have been appropriately cautious. One thing is clear: the opioid crisis shows no signs of abating, and millions of dollars in settlement funds sit unspent while Michiganders continue to lose their lives to drug overdoses.

Sources

  • Opioid settlement funds slow to reach communities across Michigan – Shoreline Media: https://shorelinemedia.net/ludington_daily_news/news/opioid-settlement-funds-slow-to-reach-communities-across-michigan/article_3e4866e3-b1b2-4213-aabd-aeadc7fb54cd.html
  • Funds to fight opioids still unspent in some Michigan counties, 3 years on – CBS Detroit: https://www.cbsnews.com/detroit/news/michigan-funds-fight-opioids-still-unspent-some-counties/
  • Where did Michigan's surplus go? – Mackinac Center: https://www.mackinac.org/blog/2026/where-did-michigans-surplus-go
  • McMorrow budget figures don't add up – Michigan Capitol Confidential: https://www.michigancapitolconfidential.com/news/mcmorrow-budget-figures-dont-add-up
  • 3 years in, opioid settlement money still unspent in some Michigan counties, including Grand Traverse – Interlochen Public Radio: https://www.interlochenpublicradio.org/2026-04-02/3-years-in-opioid-settlement-money-still-unspent-in-some-michigan-counties-including-grand-traverse
  • Some municipal officials hesitant to spend opioid settlement funds – The Standard Speaker: https://standardspeaker.com/2026/04/03/some-municipal-officials-hesitant-to-spend-opioid-settlement-funds

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