Lexington Council allocates $5.2M of opioid settlement funds

LEXINGTON, Ky. — The Urban County Council on April 21 advanced spending priorities for millions of dollars in national opioid settlement money, setting aside $5.2 million for grants and supportive housing while leaving the remainder of the city's current allocation untouched, according to CivicLex reporting on the decision.

Lexington currently holds $9 million from the ongoing litigation against opioid manufacturers and distributors, with expectations to receive approximately $30 million over 18 years. The money can only be spent on opioid abatement efforts, which Kentucky law defines as addiction treatment, prevention and recovery services that support communities impacted by the opioid crisis.

The Council voted to allocate $3 million to a community grant program for nonprofits offering evidence-based opioid services and $2.2 million to support recommendations from the city's Homelessness Task Force, which plans to address substance use disorder among Lexington's unhoused population. Commissioner of Social Services Kacy Allen-Bryant told Council that the nonprofit grant program would begin accepting applications in July, with funding tiered at up to $75,000 for micro grants and between $75,000 and $250,000 for macro grants.

The Council's action follows Mayor Linda Gorton's initial proposal, which included placing $3 million in an interest-bearing account to fund future programs and directing $2 million toward the grant program. Council increased the grant allocation by $1 million and shifted the remaining funds toward addressing homelessness, leaving $3.8 million of the current allocation unallocated for future discussion.

Some Councilmembers expressed concern about balancing the need to deploy funds quickly with ensuring long-term program sustainability, given the uncertain payment timeline from the settlements. The city will bring budget amendments for Council consideration during its next Work Session on April 28.

The settlement funds represent part of a larger national resolution. Kentucky is receiving $478 million from settlements with pharmaceutical distributors and Johnson & Johnson, with additional settlements bringing the state's total to more than $842 million. Half of the state's settlement proceeds go to local governments, with the other half administered by the Kentucky Opioid Abatement Advisory Commission for statewide programs and grants.