Opioid Settlement Funds

Background

In 2021, a $26 billion nationwide settlement was reached to resolve all opioids litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors: McKesson, Cardinal Health and AmerisourceBergen (“Distributors”), and manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, “J&J”).

The state of Michigan is slated to receive nearly $800 million over 18 years. Fifty percent of the settlement amount will be sent directly to county and local governments. The national agreement also requires significant industry changes that will help prevent this type of crisis from ever happening again.

Saginaw County receives $11,361,000 over 18 years. County Commissioners vote on spending totals for each fiscal year, with FY2025 to be approved in September. In preparation, the Opioid Funding Advisory Committee has opened up the process to receive and review proposals.

A state-subdivision agreement between the state of Michigan and local government directs how opioid settlement funds are distributed. All 83 counties in Michigan signed on to this agreement.

In 2022, additional settlements with pharmacies and manufacturers were announced, including CVS, Walgreens, Walmart, Allergan and Teva. Sign-on for settlements with CVS, Walmart, Allergan and Teva are completed in Michigan, but payments have not yet begun. These four settlements are expected to bring in around $450 million to Michigan. The Walgreens national settlement will bring about $175 million into the state to be divided equally between state and local governments, payments have not started. The associated state-subdivision agreement outlines how funds are to be distributed. The state will also receive an additional $138 million from an additional settlement with Walgreens over 18 years.

Core Strategies

The committee placed priority on the following items as it relates to spending opioid settlement funds:

• Naloxone or other FDA-approved drug to reverse opioid overdoses
• Medication-assisted Treatment (MAT) distribution and other opioid-related treatment
• Address needs of pregnant and postpartum women
• Expanding treatment for Neonatal
• Abstinence Syndrome (NAS)
• Expansion of warm hand-off programs and recovery services
• Treatment for incarcerated population
• Prevention programs
• Expanding syringe service programs
• Evidence-based data collection and research analyzing the effectiveness of the abatement strategies within the state

5 Guiding Principles

• Principle 1: Spend The Money to Save Lives
• Principle 2: Evidence Based Spending
• Principle 3: Invest in Youth
• Principle 4: Focus on Inequality
• Principle 5: Transparency

Application Process

• Process opens July 1, 2026
• Informational Webinar – July 15, 2026 from 10:00am–11:00am
• Letter of Intent and Budget Due Date – July 31, 2026
• Applicants invited to apply – August 14, 2026
• Application Due Date – September 14, 2026 at 5:00pm
• Nonfiction of Award – by October 31, 2026

Organizations or groups (including for-profit, non-profit, 501c3 organizations, schools, churches and other non-profits) addressing opioid prevention, harm reduction, treatment, and recovery are eligible for funding to support the development, implementation, enhancement, or expansion of programs. This includes programs addressing substance use disorders, polysubstance use and co-occurring mental health and substance use disorders. Request for Opioid Settlement Funds will be accepted on a rolling basis until all funds have been allocated. Organizations that were not initially funded during an application review period may apply again during future funding quarters.

Letters of intent must be submitted in PDF format and budgets can be submitted in excel format via email to: giramirez@saginawcountymi.gov

Once the letters of intent and budgets are reviewed, organizations that are selected will be invited to apply.

The goal of this opportunity is to serve Saginaw County through development, implementation, enhancement, or expansion of evidence-based strategies or promising practices to prevent and address the adverse impacts of the drug overdose epidemic.

Documents

• Letter of Intent
• Budget Template

Resources

• Exhibit E – Schedule A: Core Strategies for More Information and Examples 
• See Exhibit E – Schedule B: Approved Uses for More Information and Examples