Oregon Opioid Settlement Funds

In July 2021, the State of Oregon reached agreement on a national lawsuit against four companies for their role in the opioid crisis. These lawsuits hold prescription opioid manufacturers, distributors, and retailers accountable for their role in creating and fueling the opioid epidemic. The settlement consists of two agreements:

One agreement is with three pharmaceutical distributors: McKesson, Cardinal Health, and AmerisourceBergen
One agreement is with the opioid manufacturer Janssen Pharmaceuticals, commonly known as Johnson & Johnson

The settlement is referred to as the Distributor and Janssen Settlement Agreements. Refer to the following resources for more information:

Approximately $325 million will be awarded to Oregon over the course of 18 years, beginning in 2022. These funds can be used for a wide variety of opioid prevention, treatment, and recovery strategies that are listed in the settlement (Exhibit E).

Examples for how these funds may be used include, but are not limited to:

Expanding access to naloxone, sterile syringes, and other harm reduction supplies
Increasing medication-assisted treatment availability
Providing treatment and recovery support services such as inpatient treatment, outpatient therapy, or recovery housing
Expanding treatment and recovery services to pregnant and postpartum individuals
Expanding treatment and recovery services to individuals within and transitioning out of the criminal justice system
Developing opioid prevention education and training programs

Refer to Exhibit E of the settlement agreement for the full list of how these funds may be used.

Future Settlement Funds

The Purdue Bankruptcy plan and a side agreement between Oregon and the Sackler family will provide additional money to Oregon to address the opioid epidemic. However, further court approval is necessary before details are certain.

The opioid settlement funds will be divided between the State of Oregon (45%) and local jurisdictions (55%).

Subdivision Fund: Distributed Directly to Cities and Counties

Cities and counties in Oregon with populations greater than 10,000 will receive 55% of the opioid settlement funds. At this time, the total distribution to the Subdivision Fund is approximately $178 million, or 55% of the Oregon settlement funds. This portion of the funds will be divided among cities and counties using a population-based model developed through the settlement agreement (Exhibit A).

Local jurisdictions will decide how their funds are used. Cities and counties will be required to report to the Oregon Department of Justice annually on how they have allocated their funds. The annual reports will be publicly available, and the State will host a public meeting to discuss each annual report. This webpage will provide information about these public meetings.

Oregon Opioid Settlement Prevention, Treatment, and Recovery Fund: Distributed to the State

The State of Oregon will receive 45% of the total opioid settlement funds. The Oregon State Legislature passed House Bill 4098 in March 2022 to dictate how the State will manage and allocate these funds for statewide and regional opioid prevention, treatment, and recovery strategies.

House Bill 4098 mandates that an 18-member advisory board will determine how State’s portion of the funds will be allocated. These funding decisions will be in alignment with Oregon's Strategic Plan for Substance Use Services. A portion of the State’s funds must be used towards a unified and evidence-based state system for collecting, analyzing, and publishing data about the availability and efficacy of substance use prevention, treatment, and recovery services statewide.

Oregon's Strategic Plan for Substance Use Services

The Oregon Health Authority is collaborating closely with the Governor’s Office, the Oregon Department of Justice, and the Alcohol and Drug Policy Commission to implement the activities outlined in the opioid settlement agreement and House Bill 4098. These agencies are currently laying the groundwork to form the OSPTR Board, which is expected to begin meeting in late Fall 2022.

House Bill 4098 Fact Sheet

Approximately $503 million is going directly to federally recognized tribes from the Distributor and Janssen Settlement Agreements.

All federally recognized tribes are eligible to participate in the tribal Opioid Settlements, regardless of whether a tribe filed an opioid lawsuit. Oregon's nine federally recognized tribes are eligible to receive a portion of the $503 million settlement.

Refer to the Tribal Opioid Settlements webpage for more information: www.tribalopioidsettlements.com

House Bill 4098 mandates that an 18-member Opioid Settlement Prevention, Treatment and Recovery (OSPTR) Board will determine how to allocate the State’s portion of the opioid settlement funds for statewide and regional opioid prevention, treatment, and recovery initiatives. These funding decisions will be in alignment with Oregon's Strategic Plan for Substance Use Services.

The OSPTR Board will host a series of public meetings and will provide community members the opportunity to provide testimony and input. The Board will also establish a process for the public to provide written comments and proposals at each Board meeting. This webpage will provide information about the public process and meetings.

If you would like to submit a letter or statement to the OSPTR Board, please send it to Lisa.m.shields@dhsoha.state.or.us.

Learn more at the OSPTR Board webpage.

OSPTR Board Timeline (click here to enlarge)

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Oregon Opioid Settlement Funds