The 2025 General Session continued the Legislature’s work in thoughtfully utilizing the Opioid Settlement payments to help Utah’s citizens impacted by the opioid epidemic, including the growth of fentanyl use. As a reminder, in 2021, nationwide settlements were reached to resolve all opioid litigation brought by states and political subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal Health, and AmerisourceBergen, and also against manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson. (For a refresher, see this post from last July.)
These agreements were followed in 2022 by additional settlements reached with CVS, Walgreens, and Walmart, and two additional manufacturers: Allergan and Teva. Since that time, there have been additional smaller agreements with advertising firms, additional distributors and pharmacy chains.
The Utah will receive almost $543 million in total from opioid settlements over 17 years through 2039. With the State receiving $276.7 million and counties receiving $266.3 million. The majority of the settlement funding will be split 50-50 between the state and participating Utah counties to support the needs of addiction treatment, prevention, and recovery. See the planned distribution scheduled below for both state and local funds:
During the 2025 General Session, the Utah Legislature passed H.B. 10, “Fund and Account Modifications” which implemented changes in the way these funds are managed to provide a sustainable revenue source to help those struggling with and impacted by opioid addiction. The bill changed the Opioid Litigation Proceeds Restricted Account into a permanent fund. With this new fund type, only investment earnings are available for expenditure with the principal being managed to generate sustainable funds for appropriation. With this change, the Legislature has taken one-time funding and turned it into an ongoing revenue source that can benefit Utahns indefinitely. Depending on how revenues materialize, there may be $5 million per year available in this fund to address the impacts of the manufacture, marketing, distribution, or sale of opioids.
This legislation also provided for previous appropriations and adjustments made during the 2025 General Session to be exempted from the limitations of this new fund. The table below shows appropriations from the restricted account from the 2021 through 2025 General Session:
As the Legislature looks ahead to the 2025 Interim and 2026 General Sessions, staff will begin the process of reviewing past expenditures. The Social Services Appropriations Subcommittee has included intent language to provide for the review of each appropriation after 3 years to determine whether it is working as intended or if the funds should be reallocated elsewhere. Preliminary findings related to expenditures can be found here: Opioid Expenditure Table Summary.
Careful planning and prudent financial management of settlement proceeds has left Utah well poised to quickly react to constituents needs as the opioid epidemic evolves.