New York State Opioid Settlements

Agreements, Distribution and Use of Funds in New York State

New York State, through the Office of the Attorney General, receives funds from settlements with entities involved in manufacturing, distributing, and selling opioids. These funds are allocated to litigating entities which include New York State, counties, cities and other subdivisions.

These settlements include agreements that govern how this funding is distributed and used. Each agreement sets forth distribution categories and the percentages of funding dedicated to each. This includes funds that flow to the Opioid Settlement Fund, which is governed by New York State Statute. OASAS is the lead state agency in overseeing the Opioid Settlement Fund (OSF).

The below charts set forth how these funds are distributed in two different ways. The first chart shows allocations based off the distribution categories in the National Settlement Exhibit N (PDF). The second chart summarizes these funds based off how they are distributed. These charts are intended to provide a comprehensive view of how New York State allocates the opioid settlement funding.

The National Settlement

The National Agreement Exhibit N (PDF) sets forth eight categories for restitution and abatement, which can be rolled up into four primary categories: Direct Share Allocation to Counties and Subdivisions, OSF Regional Abatements, OSF Discretionary State Abatement Share, and State Share.

Based on NYS finance law, all opioid settlement dollars directed to the state flow through the NYS Opioid Settlement Fund. This includes the 17.5% noted as the “State Share” in Figure 1 and is shown as part of the “OSF Discretionary State Abatement Share for Public Projects/State Share” and “OSF Regional Abatements” in Figure 2.

Figure 1

1. Direct Share Allocation to Counties and Subdivisions (46.1%):
   • This is the largest portion, going directly to specific counties and subdivisions. This includes New York City (20%), Suffolk County (8.6%), Nassau County (6.7%), and all other NYS counties (10.8%). These funds are distributed directly to these entities. OASAS has no oversight of these funds.
2. OSF Discretionary State Abatement Share for Public Projects (20%):
   • OASAS is the lead agency responsible for oversight of the Opioid Settlement Fund (OSF) which can be used for the administration of the OSF and for the “approved uses” as listed in Schedule C (PDF) of the New York Opioid Settlement Sharing Agreement. The Opioid Settlement Fund Advisory Board (OSFAB) provides recommendations on how the funds could be used. Information is available below regarding the uses of the funding from the New York State Opioid Settlement Fund.
3. State Share (17.5%):
   • This portion is allocated to the State for unrestricted purposes with a portion available to the New York State Attorney General for legal and enforcement actions related to the opioid settlements. Based on NYS finance law, all opioid settlement dollars directed to the state flow through the NYS Opioid Settlement Fund. This includes the 17.5% noted as the “State Share” in Figure 1 and is shown as part of the “OSF Discretionary State Abatement Share for Public Projects/State Share” and “OSF Regional Abatements” in Figure 2.
4. OSF Regional Abatements (16.4%):
   • This portion also goes to the Opioid Settlement Fund (OSF) for “approved uses,” but is specifically designated for counties, the five large cities, and other litigating entities, excluding NYC and Nassau and Suffolk counties.

Note: Each opioid settlement agreement may have slight variations from the National Agreement in the percentages across the categories.

The Distribution of Settlement Funds

Another way to understand the opioid settlement funding is in how the dollars are distributed or made available. Opioid settlement dollars are made available through two primary mechanisms: (1) they are provided directly to counties and subdivisions or (2) they are managed as part of the OSF.

More than half of the settlement funding (approximately 62%) is allocated to local governments either directly (46.5%) or through OSF regional abatements (15.5%). The remaining 38% is overseen by OASAS, and allocated according to the settlement agreements, OSFAB recommendations, and OASAS strategic priorities.

Figure 2

Here's the breakdown of those three areas, from largest to smallest allocation:

1. Direct Share Allocation to Counties and Subdivisions (46.5%):
   • This is the largest portion, going directly to specific counties and subdivisions. This includes New York City (20.2%), Suffolk County (7.4%), Nassau County (6.1%), and all other NYS counties (12.8%). OASAS has no oversight of these funds.
2. OSF Discretionary State Abatement Share for Public Projects / State Share (38%):
   • This portion goes to the OSF, which is overseen by OASAS. This portion can only be spent on “approved uses,” which are listed in Schedule C (PDF). The Opioid Settlement Fund Advisory Board (OSFAB) provides recommendations on how the funds could be used. Information on the encumbrances from the New York State Opioid Settlement Fund are posted publicly and regularly updated on the OASAS OSF Tracker.
3. OSF Regional Abatements (15.5%):
   • This portion of the Opioid Settlement Fund is designated for counties, the five large cities, and other litigating entities excluding NYC and Nassau and Suffolk counties. These funds are administered by OASAS and designated for “approved uses,” as described in Schedule C (PDF) of the New York Opioid Settlement Sharing Agreement.

The data source for the above information is the Opioid Settlement Fund Projected Receipts by Source (PDF), September 2024.

Use of Opioid Settlement Fund

OASAS further details the use of the Opioid Settlement Fund through the OSF Tracker which includes tables with opioid settlement funds made available by priority areas and by date and initiative each state fiscal year. These tables include links to the procurement opportunities and awards made and includes information on the regional abatement portion of the OSF which goes directly to county local government units (LGUs) to address local need.