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 shared between the State and local governments, including counties and cities.

The settlements include agreements on how the funding must be used. The State’s share is deposited in the New York State Opioid Settlement Fund (OSF), established in State Finance Law and overseen by the Office of Addiction Services and Supports (OASAS). This includes the Discretionary State Abatement Share and Regional Abatement funds shown in Figure 1. Additional settlement funds are provided directly to designated counties and cities through a national settlement distributor. These Direct Share funds are managed by local governments and are not overseen by OASAS, as illustrated in Figure 1.

 

 

The Distribution of Settlement Funds

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

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 1

Pie chart showing more than half of 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.

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 but is required to include this allocation in its reporting.
  2. OSF Discretionary State Abatement Share for Public Projects / State Share (38%):
    • Overseen by OASAS, this portion of the OSF can only be spent on “approved uses” (as listed in Schedule C (PDF) of the New York State Opioid Settlement Sharing Agreements). 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 is posted publicly and regularly updated on the OASAS OSF Tracker. 
    • This portion goes to the OSF, which is overseen by OASAS. This portion can only be spent on “approved uses,” which are listed in . 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. 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 The Opioid Settlement Fund

OASAS 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.