November 7, 2025
Opioid Settlement Advisors Say Hochul Administration is Keeping Them in the Dark
The board overseeing opioid lawsuit settlements is raising the alarm that New York could use the funds, which are meant to expand substance abuse initiatives, to backfill federal cuts.
By Jie Jenny Zou, NY Focus, 11/7/25
The board advising New Yorkon how to spend huge sums from opioid lawsuit settlements pressed Governor Kathy Hochul for greater transparency and faster action in its annual report released this week.
The state has received over $500 million from settlements reached with drug manufacturers for their role in the opioid crisis and is set to receive much more, including from a record $7.4 billion deal announced in January. The settlement funds consist of a complex mix of different pots of money, large portions of which the Opioid Settlement Fund Advisory Board oversees under state law.
But board members say the state Office of Addiction Services and Supports, which administers the funds, has been slow to respond to repeated requests for basic data, like how much of the money has made it to providers. Members have also been frustrated with the state’s routine rejection of their recommendations with little explanation.
“We don’t get any clear answers from the state,” said Ashley Livingston, a board member who has requested spending data since the body’s founding. “We’ve been asking for the same thing since June of 2022.”
Tensions hit a new high over the summer when budget officials asked the board to take a stance on whether it would support using the settlement funds to offset federal cuts. By law, the money is meant to go toward new or expanded substance abuse initiatives and can’t be used to “supplant” or replace existing state funding.
Asked whether OASAS has specific plans to use settlement funds to backfill federal cuts, a spokesperson for the agency, Evan Frost, wrote that “OASAS is continuously evaluating the potential effects of federal actions on our providers and programs.”
The proposal has raised concerns among board members like Livingston that the funds could be used to plug budget holes as the state grapples with declining federal support for an array of social services, including mental health programs.
Over 4,500 New Yorkers died from drug overdoses in 2024, by the state’s estimate. While overdose deaths have significantly dropped among white New Yorkers in recent years, they have been much slower to decline in communities of color, particularly for Black, Brown and Indigenous New Yorkers.
In its annual report published on November 1, the board urged the state to increase funding and support for communities of color disproportionately impacted by overdose deaths. It also highlighted an array of recommendations to boost transparency.
Days before the board’s October meeting — the last scheduled for the calendar year — OASAS finally provided members with 550 pages of documents in response to longstanding requests for spending data. But the board lamented in the report that the state had not provided enough time for members to review the data and that it wasn’t presented in a way that directly answered their questions. Members have moved to prioritize discussion of the state-provided data during its first meeting next year.
The annual report also noted that only $240 million of the over $500 million of settlement dollars appear to have been “disbursed” as of October, but that more clarification was needed from the state for members to fully understand how to make sense of these numbers.
At the board’s October meeting, members passed a motion to ensure $35 million in accrued interest not be swept into the state’s general funds and instead be directed to smaller community-based organizations that may struggle with the state’s application process. Members also voted to increase the number of board meetings from four to a minimum of six annually and requested a dedicated project manager to improve coordination with OASAS.
It’s unclear whether any of these recommendations will be taken up by the state. OASAS has rejected several of the board’s recommendations in the past, including its proposals to use settlement funds to create more overdose prevention centers, to expand harm reduction initiatives at the state Department of Health, and to declare a public health emergency.
“We are poorly treated as an advisory board,” said board member Tracie Gardner, who heads the National Black Harm Reduction Network. “Do I think the Governor is ignoring the specific needs to fight overdose in Black communities? Yes,” Gardner added.
The lack of transparency around settlement fund spending prompted Rob Kent, a private consultant who previously worked at OASAS and at the White House Office of National Drug Control Policy, to file a public records request this year with the state comptroller for contract data. The result was a spreadsheet that Gardner said was the most information she had seen at the time about how some of the funds had been spent.
“We don’t know what the hell is going on …. Is the state going to try to steal this money?” said Kent, discussing concerns that the state could divert funds as it deals with budget gaps.
Such a choice would be a disservice to opioid victims and their families who fought hard for the funds in courts, Kent said, drawing a parallel with misspending by states of funds from the settlements with tobacco companies in the 1990s. “This isn’t the state’s money, they’re trustees of the money,” he said. “This is blood money.”
Drug policy reform advocates have been frustrated by OASAS, too. This month, the Legal Action Center urged board members to continue to push for more transparency, resist efforts by the state to redirect settlement funds, and increase funding opportunities for smaller, grassroots organizations.
Christine Khaikin, senior health policy attorney for the organization, said her staff have found numerous inconsistencies with OASAS announcements of contract awards and have been unable to make sense of the spending. The agency’s online settlement fund tracker also appears to be out of compliance with state law, Khaikin said.
Under state regulations, OASAS must publicly report how the funds are spent, an analysis of whether they were spent effectively, and its criteria for awarding funds. To date, none of this information has been made public.
Frost, the OASAS spokesperson, told Focus the agency plans to update the tracker in the future. “Many initiatives have been in place for a little more than a year or in some cases less, we do not have full data on effectiveness or other analysis points. Once that information is available, it will be included on the dashboard,” he said.
Frost claimed the state has moved faster than any other in the country to get settlement dollars directly into communities, citing a KFF Health News report. That article looked at how states had either spent or committed their funds, not necessarily if funding had reached recipients. It also found nearly a third of New York’s total funds were “untrackable.”
Meanwhile, smaller organizations across the state are struggling to keep their doors open and programs running.
At a hearing earlier this month, the program manager of The Turning Point, the only addiction outreach center in rural Chenango County, said that the center is at risk of shuttering in June due to delays in funding.
The Buffalo-based nonprofit Save the Michaels of the World, which was created to raise awareness about addiction following the death of Michael David Israel, is also facing a cash crunch. Its founder, Michael’s father Avi Israel, resigned from the settlement fund advisory board last year after being frustrated by a lack of transparency and action.
“We can make all these suggestions and do all this stuff and OASAS is going to do whatever they want,” he said. “For the two and half years I sat there, I couldn’t take it anymore.”
His organization has helped shuttle people to treatment in Western New York, a vast area with little regional public transit. Israel said he is unclear about the status of an OASAS contract that was supposed to go out earlier this year to support those transportation efforts.
“They’re not giving us enough money to survive,” Israel said of the state. “If we’re not around, there’s going to be a big hole in the community.”
——————
(Politico, 11/7) – Senate GOP Leader John Thune will try to break the shutdown impasse today. Democrats we’ve spoken to say he won’t succeed, as they dig in to force more GOP concessions in the coming days.
Thune will tee up another vote on the House-passed CR today as part of a plan that could pave the way for ending the shutdown. The majority of Democrats said Thursday night they’d block the effort — even as party moderates are talking with Republicans about an offer that would advance a minibus appropriations package and revised stopgap into at least December, with a promise of a future vote on extending Affordable Care Act subsidies.
Some Republicans and Democrats are also discussing whether the revised stopgap funding deal could include language to reverse President Donald Trump’s RIFs and add stronger provisions to guarantee back pay for federal workers, although key details still need to be hammered out.
Both parties had seemed optimistic heading into this week. But the mood has turned gloomier, and those involved in bipartisan talks were skeptical there would be a breakthrough today. GOP leaders were noncommittal Thursday on whether the Senate would stay in Washington through the weekend.
“Unfortunately, it’s folks trying to figure out a path forward. But there is no organized effort at this point that is bearing fruit,” Sen. Mike Rounds told reporters Thursday. “There are attempts to find a way to bring people forward, but I’m discouraged. I’m hoping that overnight, things might change a little bit, but I’m not optimistic.”
Voters are about to feel the pinch, with the Trump administration slashing flights and airlines pleading for Congress to end the shutdown. Behind the scenes, some Senate Democrats are trying to come up with options to address the expiring Affordable Care Act subsidies that could realistically pass the House. Reaching a bipartisan agreement on the subsidies has become a difficult and politically challenging issue for Democrats, with many highly skeptical their GOP counterparts will ever follow through on the issue once the shutdown ends, Benjamin Guggenheim reports this morning.
Some freshman Democratic senators are trying to make progress: Sens. Andy Kim and Lisa Blunt Rochester plan to meet with GOP Reps. Brian Fitzpatrick and Jeff Van Drew today to talk about a possible bipartisan plan, as Mia scooped with Meredith Lee Hill and Nicholas Wu. One Democratic aide involved in bipartisan talks told Meredith “we are not going to get a better offer.”
“The hardliners have yet to articulate any sense whatsoever of how they think this ends or any proposal to get Republicans to the table other than waiting longer and longer,” another Democratic aide told Jordain Carney. “And in the meantime it’s the families who can afford it the least that are increasingly getting walloped by the shutdown.”
———————–
Accelerating the Path to Clinical Licensure
The path to licensure can feel overwhelming, with complex requirements, financial strain and feelings of isolation. The National Mental Health Workforce Acceleration Collaborative, funded by and developed with Kaiser Permanente, gives post-master’s professionals the support they need to succeed. Participants can earn up to $10,000 in milestone-based incentives and gain access to live and on-demand training, peer support, mentorship and networking opportunities. Apply to join the Jan. 2026 cohort by Nov. 16!
(National Council for Emotional Wellbeing, 11/6)
——————–
The New York State Office of Mental Health has issued a Request for Proposals to expand its Peer Bridger services program. The program supports wellness and recovery of individuals who are making a transition from hospitalization to the community. OMH is seeking proposals from Article 28 facilities with inpatient psychiatric units to implement Peer Bridger programs.
Each of the three selected hospitals will receive $300,000 per year for five years, totaling $900,000 annually, statewide. This funding is intended to cover program costs, including hiring of three peer support specialists and associated travel and incidentals.
Peer Bridgers will provide voluntary support to individuals experiencing emotional distress, trauma, mental illness, or substance use challenges. Peer Bridgers will establish rapport during hospitalization, and continue support in the community for up to one year. Their role includes individualized skills training, systems navigation, and advocacy, grounded in a ‘do with rather than do for’ approach. The focus is on fostering hope, self-determination, and self-efficacy, not care management or ensuring follow-up appointments.
Eligible applicants will collaborate with the OMH Office of Advocacy and Peer Support Services, as well as identified training and technical assistance entities. Awards will be made to three applicants in the OMH Long Island, New York City, Hudson River, Central New York, and Western New York regions.
The RFP document can be found at: https://omh.ny.gov/omhweb/rfp/2025/peer_bridger/index.html
————————–
New York has released its first statewide maternal mental health report and is allocating $850,000 to support behavioral health services in perinatal care settings.
The report outlines recommendations to improve mental health outcomes for pregnant women, including expanded screening protocols, provider training, peer support programs and greater use of doulas, according to a Nov. 6 news release from Gov. Kathy Hochul’s office. It also advocates for specialized training for 988 crisis counselors and an expansion of the state’s Collaborative Care Medicaid Program.
It was developed by the Maternal Mental Health Workgroup and led by the New York State Office of Mental Health.
————————
November 6, 2025
Source: Division of Budget via Reid, McNally and Savage
Yesterday afternoon, mid-year reports (known as “Quickstart”) reviewing State financial and economic information and projections were released by the majority conferences in each chamber of the State legislature. Consistent with the Division of Budget’s (DOB) Mid-Year Financial Plan Update released last week, all parties agree that there are increased revenues as outlined below. Total revenue projection by all parties does not eliminate a deficit forecast for next year’s state budget. The DOB’s estimate forecasts a $4.2 billion budget gap – needless to say, increases in revenue/or increases in spending combined with federal reductions over the next six months will impact this forecast. Please find a copy of the reports attached and linked accordingly (Senate report, Assembly report), as well as brief highlights below.
Senate Report Overview:
The Finance Committee projects that All Funds receipts for State Fiscal Year (SFY) 2025-26 and 2026-27 will increase by $7.6 billion from SFY 2024-25 actuals and $4.9 billion from the SFY 2025-26 estimate, with personal income tax receipts so far making up the largest share of all funds receipts (45.7%) and the Pass-Through Entity Tax projected to be revenue neutral for the State. Regarding economic outlook, the Committee highlights the Federal Reserve’s October 2025 Beige Book’s finding that economic activity in the Second District (New York, Northern NJ, Fairfield County CT, Puerto Rico, U.S. Virgin Islands) has seen a slight decline and the services sector has seen consistent moderate decline.
However, specific to New York State, wage growth was ahead of the U.S. with estimates at 5.8 percent compared to 5 percent on a national level, consumer spending has increased modestly, and the housing market remains solid. The economy is currently growing at a slower pace than projected in the SFY 2025-26 Economic and Revenue Consensus and persistent high inflation, elevated interest rates, the ongoing U.S. government shutdown, and trade and tariff challenges are creating uncertainty and may have negative impacts. Noting eligibility and qualification changes for Medicaid enacted in H.R.1 effective January 1, 2026, Finance Committee staff point to DOB’s estimated cost of $3 billion to the State if individuals who currently qualify and are enrolled in Essential Plan are moved to Medicaid.
Assembly Report Overview:
Overall, Ways & Means (W&M) Committee staff find that the State remains in a solid fiscal position with receipts currently exceeding disbursements by $723 million in the General Fund and $1.5 billion in All Funds. They report that All Funds receipts for SFY 2025-26 will increase by 5.7 percent from SFY 2024-25 actuals (nearly $7 billion) driven largely by the annual growth of $5.2 billion in tax collections ($4.6 billion growth in personal income tax collections and $554.8 million in Consumption Taxes). Notably however, due to the significant $13.6 billion decrease in federal receipts, they state that they expect All Funds revenues to decrease by 3.6 percent for a total of $249.3 billion in SFY 2026-27.
Similar to the Senate’s analysis, the Assembly found that nonfarm wages and salaries growth continued at 7.4 percent in SFY 2024-25 and project growth to decelerate to 5.7 percent in SFY 2025-26 and 3.6 percent in SFY 2026-27. Nonfarm employment in the State increased by 2.4 percent in SFY 2024-25 however this is estimated to decrease to 1 percent in growth in SFY 2025-26 and 0.5 percent in SFY 2026-27 due to weaker growth in business investment and personal consumption amid a broader economic slowdown. They highlight the same risks to the State economy resulting from the national economy as the Senate Finance staff as well as the central role Wall Street and the financial markets play in the State economy.
Lastly, emphasizing the significant impacts on federal funding for State and local government and the State’s overall Financial Plan, they highlight the below chart developed by DOB summarizing H.R.1 savings and costs.