LEXINGTON, Ky. — Urban County Councilmembers heard the city's plan this week for spending millions of dollars in opioid settlement funds, part of a multibillion-dollar payout from pharmaceutical companies held responsible for their role in fueling the nation's opioid crisis.

The Lexington-Fayette Urban County Government currently holds almost $9 million in settlement money and expects to receive approximately $30 million over an 18-year period, with the first payment arriving in December 2022. The funds come from lawsuits against major opioid manufacturers and distributors, with the city having joined more than 30,000 municipal plaintiffs in litigation filed in 2017.

Mayor Linda Gorton established the Opioid Abatement Commission in 2023, which spent two years developing spending recommendations. The commission completed a Recovery Ready Communities Assessment for state certification and consulted with community members before submitting its proposal to the mayor for final review.

The city outlined six major spending priorities. These include creating an interest-bearing account to allow current funds to grow while awaiting future payments, funding supportive housing with wrap-around treatment services, and supporting community corrections programs that provide treatment and counseling to reduce recidivism and overdoses among incarcerated people. The plan also calls for a grant program for local nonprofits, ongoing support for naloxone distribution, and hosting an opioid response and recovery conference.

Kentucky has seen opioid overdose deaths fall by 30% from 2023 to 2024, with expanded access to naloxone and fentanyl test strips cited as critical harm reduction tools. However, advocates warned recently of funding volatility after a federal funding cut briefly eliminated nearly $500,000 earmarked for overdose prevention in Lexington and Fayette County in January.

During the March 24 Budget, Finance and Economic Development Committee meeting, some councilmembers pressed for more specifics on timing and public input. Urban County Council members can be contacted through the city's official website to share perspectives on how the settlement funds should be used.