Opioid Settlement Funds

Background and Origins

Between 2021 and 2022, nationwide and New Mexico–specific opioid litigation led to settlements with major manufacturers and distributors. These agreements will send distributions through 2038—approximately $21 billion from distributors and $5 billion from J&J—to states and local jurisdictions to address opioid use disorder (OUD) harms.

For Las Cruces and Doña Ana County, that translated to a projected combined allocation of nearly $10 million to Las Cruces and about $25 million throughout Doña Ana County over 15 years. The case reflected a broader imperative in New Mexico, which ranks among the states with the highest overdose death rates—57 in Doña Ana County in 2021 alone, or 28.2 per 100,000 people.

In fall 2023, the City and County formed an Opioid Settlement Advisory Council (OSAC), engaging Vital Strategies and New Mexico State University’s Crimson Research to conduct a community-driven needs assessment.

The assessment (August 2024) combined:

Quantitative data from state, county, and national overdose statistics;
Qualitative methods, including focus groups, street outreach surveys, and town halls in places like Chaparral and Hatch;
Input from lived‑experience participants—people in recovery, first responders, youth, and more.

Findings highlighted stark treatment gaps—around 75 % of New Mexicans in need lacked services—as well as provider shortages, transportation barriers, low health literacy, and high fentanyl/methamphetamine co-use.

Doña Ana County forecasted $14.5 million through 2038, holding $5.6 million initially to launch a two‑year coordinated plan ($7.3 million) focused on medication‑assisted treatment (MOUD), warm hand‑offs, prevention, and naloxone distribution.

In August 2025, Las Cruces passed Resolution No. 26‑025, allocating 30 % of expected distributions ($2.9 million) over two years—60 % for treatment services and 40 % for prevention—based on OSAC’s recommendations.

The first tranche—approximately $3.8 million—was released once joint plans were approved. In May 2026, the city contracted Pivot Evaluation LLC to independently evaluate program effectiveness through 2029.

FY 2026 allocations from the city included:

$1.12 million to Ideal Option PLLC for deflection and intensive case management;
$245,915 to Porch Light Health for on-demand medication-assisted treatment;
$399,904 to the DACRL 100 % Family Center;
$356,000 to Las Cruces Public Schools for social-emotional learning;
$175,000 for police-led opioid remediation education;
$82,200 to the Fire Department for naloxone.

Formed in 2023, the Opioid Settlement Advisory Council is a joint body of community members, professionals, public health experts, first responders, and people with lived experience. Its mission is to ensure equity-driven, evidence-based funding decisions, grounded in transparency and community priorities.

OSAC guided:

Use of data and qualitative research;
Consensus-building on strategies like MOUD expansion, warm hand-offs, prevention education, harm reduction, and outcome tracking;
Implementation frameworks outlining interventions across settings (emergency departments, schools, first responders, rural and Spanish-speaking communities).

Its values—transparency, equity, lived experience, and data-driven decision-making—have embedded community voices at the center of resource allocation.

Grounded in town halls, surveys, and lived-experience input, the needs assessment directly fed into funding priorities. This community feedback ensured funding aligned with the actual experiences and needs of those affected by opioids in Las Cruces and Doña Ana County.

Overall, the Las Cruces–Doña Ana County opioid settlement process exemplifies a coordinated, research-based, inclusive approach—from litigation outcomes to local action—with community leadership driving strategy and OSAC ensuring funds are spent equitably, effectively, and transparently.

Acronym	Definition
ACE	Adverse Childhood Experiences
AUD	Alcohol Use Disorder
ED	Emergency Room aka Emergency Department
IOP	Substance Abuse Intensive Outpatient Program
MAT	Medical Assisted Treatment for Addictions
MOD	Medical Assisted Treatment for Addictions (MAT) On-Demand
MOUD	Medications for Opioid Use Disorder
OO	Overcoming Obstacles - free, evidence informed social and emotional learning curriculum
OUD	Opioid Use Disorder is a chronic, treatable mental health condition characterized by a problematic pattern of opioid use that leads to significant impairment or distress.
PHP	Partial Hospitalization Program
PROMOTORA	A community member who receives specialized training to provide basic health education in the community without being a professional health care worker.
SADSUD	SUD (Sudden Arrhythmic Death Syndrome) & SUD (Substance Use Disorder)
SAMHSA	Substance Abuse and Mental Health Services Administration
SBIRT	Screening, Brief Intervention, and Referral to Treatment
SEL	Social Emotional Learning, activities that promote emotional regulation, resilience and coping skills
SUD	Substance Use Disorder
TI-MI	Trauma-informed Motivational Interviewing
Triple P	Positive Parenting Program
UDS	Urine Drug Screen