MOREHEAD, Ky. — Kentucky's cities and counties have received millions of dollars from national opioid lawsuit settlements over the past several years. The money was intended to help communities fight addiction, prevent overdoses, expand treatment and support recovery.
But according to a new report from the Kentucky Center for Economic Policy (KyPolicy), most of that money is still sitting in government accounts instead of being put to work.
The report found that, as of June 30, 2025, Kentucky's local governments had received more than $122 million in opioid settlement funds. Yet only about 10% of that money had been spent.
Where did the money come from?
The funding comes from nationwide legal settlements with pharmaceutical manufacturers, distributors and other companies accused of contributing to the opioid epidemic.
Kentucky is expected to receive more than $1 billion through these settlements between 2022 and 2038. Half goes to the Commonwealth, while the other half is divided among all 120 counties and 149 cities for local opioid-related programs.
Those dollars are intended to support efforts such as:
Addiction treatment
Recovery programs
Overdose prevention
Harm reduction initiatives
Education and prevention efforts
What did the report find?
Among the report's major findings:
More than 90% of local opioid settlement money remained unspent at the end of Fiscal Year 2025.
138 of Kentucky's 269 local governments (51%) reported spending nothing at all during the fiscal year.
Counties had spent only 8.5% of the money they had received.
Cities had spent 16.8% of their funds.
Researchers also said some of the money that was spent went toward projects they questioned as not being effective in addressing addiction or preventing overdose deaths.
What about Rowan County and Morehead?
The KyPolicy database includes spending information for local governments across Kentucky.
Rowan County
According to the report, Rowan County had received:
$528,475.85 in total opioid settlement funding through FY2025
$189,000 was spent during FY2025
Approximately 36% of the funds received had been spent
The county ended the fiscal year with a remaining balance of approximately $339,475.85.
City of Morehead
The City of Morehead reported:
$138,949.03 received through FY2025
$11,040.65 spent during FY2025
Approximately 8% of its available funds had been spent
The city ended the fiscal year with a remaining balance of about $127,908.
Why haven't more communities spent the money?
According to the report, there wasn't one single reason.
Some local governments said they were still developing plans for how to use the money. Others reported they were unsure what types of projects qualified under the settlement agreements. Still others simply indicated they had not yet spent any of the funds.
The bigger picture
Kentucky has seen overdose deaths decline in recent years, but more than 1,100 Kentuckians still lost their lives to overdoses in 2025, according to the report. Researchers argue that communities have an opportunity to use these settlement dollars to continue reducing addiction and overdose deaths through evidence-based programs.
Whether local governments choose to spend the money now or reserve it for larger long-term projects will likely remain a topic of discussion as additional settlement payments continue to arrive over the next decade.
Source: Kentucky Center for Economic Policy opioid settlement report and interactive county/city expenditure database.
To Order, click on image