Three Years Later, Opioid Settlement Funds Still Unspent in West Michigan Counties as Attorney General Report Expected This Spring

Millions of Dollars Sitting in Bank Accounts Across Grand Rapids, Kalamazoo, Muskegon and Other West Michigan Communities

More than three years after Michigan communities began receiving millions of dollars to fight the opioid epidemic, some have yet to spend a dime. The sluggish pace of spending in West Michigan counties has frustrated state leaders and addiction response advocates alike.

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 in areas where they have been deployed, the slow movement of settlement dollars in some communities has become a growing concern.

Grand Traverse County: $2 Million Still in the Bank

One West Michigan community that has yet to spend any funds is Grand Traverse County, where Traverse City is located. The county 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 explained that the new source of money came with new types of parameters around it. The county had to develop a plan before they could begin spending the money, which has delayed the process.

"We had a failed first attempt to create a plan for the money," Lahey said. "Now, a plan is in place and a task force formed. I hope to have (requests for proposals) out in May."

Statewide Picture: 40% of Communities Haven't Spent a Dime

A 2024 Bridge Michigan 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.

West Michigan Counties Still in Planning Phase

Eaton County, which is receiving about $300,000 annually, has developed a strategic plan and a community assessment to identify gaps in mitigation efforts.

"We are still in a planning/assessing/collecting RFPs stage," Logan Bailey, director of public and governmental affairs for the county, said in an email to Bridge Michigan.

A similar planning phase is underway in Mason County, where a newly formed advisory group is reviewing allowable uses under the settlement and preparing to guide future spending recommendations on more than $1.9 million in expected funds.

Warren: $2.9 Million Still Unspent

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."

Lenawee County: $1.25 Million Coming Up

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, 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 Human Cost Continues

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

What Has Been Spent

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.

"When someone uses naloxone, they may be reachable for treatment," said Cara Poland, chair of the Opioid Advisory Commission. "You don't have a chance for recovery when someone overdoses and dies."

Attorney General Report Expected 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.

Critics Say Planning Has Been Too Slow

Jonathan Stoltman, of the Grand Rapids-based Opioid Policy Institute, said that if there was some deliberative process that took three years, that's too long.

"Money needs to get out the door," Stoltman said.

But Poland, chair of the Opioid Advisory Commission, agrees that communities should be thoughtful about how they spend settlement dollars. But after more than three years, "planning time has been adequate."

"We should be (using) those funds," Poland said.

What Advocates Say

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

"It's been a very frustrating process for people who have been doing effective work for a long time," said Lynch. "I hear the criticism. 'What are we doing — this money should be out.'"

Lahey acknowledged the frustration. "And I get 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."

The Bottom Line

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.

The question remains: How much longer should West Michigan communities wait to put these millions to work helping the people who need them most?

Sources

• https://www.shorelinemedia.net/ludington_daily_news/news/opioid-settlement-funds-slow-to-reach-communities-across-michigan/article_3e4866e3-b1b2-4213-aabd-aeadc7fb54cd.html
• https://newsday.com/news/nation/michigan-opioid-settlement-funds-communities-e98056
• https://www.interlochenpublicradio.org/2026-04-02/3-years-in-opioid-settlement-money-still-unspent-in-some-michigan-counties-including-grand-traverse
• https://apnews.com/article/michigan-opioid-settlement-funds-communities-985fd0d7e0822cbce018a16862dfef71