Where do these monies live?

The state’s 45% share is placed in the Opioid Settlement Restricted Fund,[1] and about 5% of its value is distributed to the Opioid Crisis Recovery Fund each year.[2]

What can this share be spent on?

In general, and with limited exceptions,[3] this share must be spent on opioid related expenditures,[4] which the state defines in general to mean the national settlement agreement’s (non-exhaustive) Exhibit E, which includes prevention, harm reduction, treatment, recovery, and other strategies.[5]

Monies from the Opioid Crisis Recovery Fund monies may be used to reimburse prior abatement costs.[6] The Recovery Fund must also be spent to prioritize evidence-based statewide and regional programs, including those that treat opioid use disorder and co-occurring substance use disorders and mental health conditions; provide connections to care; address the needs of those involved in the criminal legal system; address the needs of pregnant or parenting women and their families; support efforts against overprescribing, discourage “misuse,” reduce overdose deaths “or other opioid-related harms”; educate law enforcement; and provide support services for first responders who experience secondary trauma.[7] The state share may also be spent on research.[8]

Who ultimately decides how to spend this share (and how)?

State legislature decides. The Recovery Fund is appropriated by the New Mexico state legislature, which ultimately decides how the Recovery Fund is spent on statewide and regional abatement programming.[9]

Is this share attached to an explicit bar against supplantation?

No, supplantation is not prohibited. Like most states, New Mexico does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 45% state share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

No (neither public nor intrastate reporting required). Opioid settlement expenditures are not officially published in a centralized location for this share.[10]

Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Several of New Mexico’s opioid settlements were reached as the result of the Attorney General’s use of private law firms.[11] This approach incurred “significantly higher [attorneys’] fees” than states participating in national settlement accords and drew the attention of the state’s Legislative Finance Committee, among others.[12] In November 2023, the former Attorney General penned a response to these concerns.[13]

Citations

1. Agreement B.3 (“45% to the State of New Mexico (‘State Share’)”). N.M. Stat. Ann. Sec. 6-4-28(A) (“The ‘opioid settlement restricted fund’ is created as a nonreverting fund in the state treasury, separate and distinct from the general fund” and “consists of money, other than attorney fees and costs, paid to the state”) and Sec. 6-4-28(C) (“Opioid funds designated by the New Mexico opioid allocation agreement to be distributed to local governments shall not be deposited into the fund”). The Restricted Fund may also receive monies appropriated to it by the legislature. See N.M. Stat. Ann. Sec. 6-4-28(B). ↑

2. N.M. Stat. Ann. Sec. 6-4-28(D) (“Appropriations from the opioid settlement restricted fund shall only be made to the opioid crisis recovery fund and shall not be made for any other purpose”). Under state law, the first of these distributions was to occur July 1, 2024 and be equal to “five percent of the average year-end market value of the opioid settlement restricted fund for the immediately preceding fiscal year.” N.M. Stat. Ann. Sec. 6-4-28(E). In July 2025, the distribution is calculated based on the preceding two calendar years and beginning in July 2026 and thereafter, the distribution is equal to 5% of the average of the year-end market values of the Restricted Fund for preceding three calendar years. N.M. Stat. Ann. Sec. 6-4-28(F)-(G). ↑

3. Agreement B.1 (describing settlement administrator costs as divided evenly between the state’s share and localities’ share) and Agreement D.5 (“No funds from the State Share shall be used to pay Local Governments’ attorneys’ fees and no funds from the State Share shall be paid to the New Mexico Backstop Fund”). See also LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024 (“New Mexico will pay $249.4 million in outside counsel fees, 28.2 percent of total opioid settlement revenues”). The controversy around the significant funding directed to outside counsel costs led the former New Mexico Attorney General to write a responsive op-ed. Hector Balderas and Brian McMath. New Mexico Deserves the Facts, Communities Will Receive Vital Treatment Dollars from Opioid Litigation. Rio Grande Sun. November 22, 2023. Accessed August 11, 2024. ↑

4. N.M. Stat. Ann. Sec. 6-4-29(B) (“Money in the opioid crisis recovery fund may only be expended upon appropriation by the legislature and shall only be opioid remediation expenditures”) and Agreement B.6 ("100% of the State Share and the LG Share, regardless of allocation, shall be utilized only for Opioid Related Expenditures"). ↑

5. N.M. Stat. Ann. Sec. 6-4-29(F)(3). The New Mexico law that defines “opioid remediation” for the state’s share of expenditures mirrors language in the national settlement agreements. See Distributor Settlement Agreement I.SS. See also Agreement A.3 (defining "Opioid Related Expenditure” to mean “an expenditure consistent with the categories enumerated in Exhibit E to the Distributor Master Settlement Agreement and the J&J Master Settlement Agreement ... attached hereto as Exhibit B"). ↑

6. Compare Agreement C.2 (“For avoidance of doubt, funds in a LG Abatement Fund may not be expended for costs, disbursements, or payments made or incurred prior to the Settlement”) with N.M. Stat. Ann. Sec. 6-4-29(F)(3) (defining “opioid remediation expenditure” to mean “expenditures on care, treatment and other programs, including reimbursement for past programs or expenditures…”) (emphasis added). ↑

7. N.M. Stat. Ann. Sec. 6-4-29(D)(1)-(9). ↑

8. N.M. Stat. Ann. Sec. 6-4-29(E) (“[A] portion of the money may be allocated toward research on opioid abatement or evaluations of effectiveness and outcomes reporting for substance use disorder abatement infrastructure, programs, services, supports and resources for which money from the opioid crisis recovery fund was disbursed, such as the impact on access to harm reduction services or treatment for substance use disorders or a reduction in drug-related mortality”). ↑

9. N.M. Stat. Ann. Sec. 6-4-29(B) (“Money in the opioid crisis recovery fund may only be expended upon appropriation by the legislature and shall only be opioid remediation expenditures. Priority shall be given to appropriations that support evidence-based statewide and regional programs that seek to abate opioid use disorders and any co-occurring substance use disorders or mental health conditions”). ↑

10. Individual resources may summarize some of the legislative appropriations from this share. For example, this Legislative Finance Committee hearing brief (describing appropriations of $21M in FY24, including $9 million to improve direct service provision, investments in medication-assisted treatment ($4.5 million) and behavioral health initiatives ($2.5 million), and $12 million “to enhance systems designed to address consequences of the opioid crisis”). LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. ↑

11. See OpioidSettlementTracker.com’s Global Settlement Tracker. New Mexico hired private law firms to pursue its lawsuits against Walmart, Walgreens, CVS, Kroger, and Albertsons, incurring higher attorneys’ fees than the majority of states that opted to participate in national settlement agreements with these entities. As a result, of the total monies New Mexico recovered from the Distributors settlement and the settlements with Walmart, Walgreens, CVS, Kroger, and Albertsons, 28.2% will be paid to outside counsel. See LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. ↑

12. See LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. See, e.g., Curtis Segarra. New Mexico to use over one fourth of opioid settlement fees on outside lawyers, according to LFC. KRQE News. May 17, 2024. Accessed August 11, 2024. ↑

13. Hector Balderas and Brian McMath. New Mexico Deserves the Facts, Communities Will Receive Vital Treatment Dollars from Opioid Litigation. Rio Grande Sun. November 22, 2023. Accessed August 11, 2024. ↑

This Community Guide will describe how New Mexico is spending its opioid settlements, and whether New Mexico is working to ensure community access to opioid settlement funds. Last revised September 1, 2024.

Where do these monies live?

This share is distributed to participating cities and counties according to the percentages listed in Exhibit C of New Mexico’s allocation agreement.[1] Each of these local governments were required to establish separate funds to specifically hold their opioid settlement proceeds separate from their general coffers or other local funds.[2]

New Mexico’s allocation agreement refers to these cities and counties as “regions,” which are single cities (e.g., Albuquerque), counties and their participating cities (e.g., Eddy County, inclusive of Artesia and Carlsbad), or counties without any participating cities (e.g., Mora County on its own).[3]

Regions containing more than one local government may agree to share funds amongst themselves in any manner they choose, with the default allocation from Exhibit G of the national settlements applying in the absence a specific agreement.[4]

What can this share be spent on?

With limited exceptions,[5] including substantial set-asides for attorneys’ fees,[6] this share must be spent on the opioid related expenditures uses described in the national settlement agreement’s (non-exhaustive) Exhibit E,[7] which includes prevention, harm reduction, treatment, recovery, and other strategies.

Additionally, local governments are prohibited from spending their shares to reimburse costs incurred prior to the applicable settlements being reached.[8]

Who ultimately decides how to spend this share (and how)?

Local governments decide autonomously. Decisionmakers for the counties and cities will ultimately decide for themselves how to spend their monies on Exhibit E uses,[9] whether independently or by combining their shares for joint uses.[10]

For example, the City of Albuquerque enacted a resolution outlining a process for the expenditure of settlement funds and is collaborating with Bernalillo County on strategic planning.[11]

Is this share attached to an explicit bar against supplantation?

No, supplantation is not prohibited. Like most states, New Mexico does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 55% local share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Up to each locality (neither public nor intrastate reporting required). Opioid settlement expenditures are not officially published in a centralized location for this share.

Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Several of New Mexico’s opioid settlements were reached as the result of the Attorney General’s use of private law firms.[12] This approach incurred “significantly higher [attorneys’] fees” than states participating in national settlement accords and drew the attention of the state’s Legislative Finance Committee, among others.[13] In November 2023, the former Attorney General penned a response to these concerns.[14]

Citations

1. New Mexico Allocation Agreement (Agreement) B.3 (“55% to the Local Governments (the ‘LG Share’)”), B.4 (The LG Share will be divided into regions, each of which consists participating local governments), and B.5 (“The LG Share will be distributed to each Region as set forth in Exhibit C”). See also Agreement A.1 ( defining “Local Government” as “every litigating county and city, each county regardless of population, each city with a population exceeding 10,000 … identified on Exhibit A”) and A.6 (defining “Participating Local Government” to mean “any Local Government that agrees to be bound by a Settlement by Participation Agreement necessary to effectuate that Settlement or other similar document”). For a recent update on disbursements to local governments, see LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. ↑

2. Agreement C.1 (this is called an “LG Abatement Fund” and “[f]unds in an LG abatement fund shall not be commingled with any other money or funds of the Local Government”) (emphasis added). ↑

3. Agreement B.4 (“‘Region’ consists of either: (1) a single Participating County that does not have any Participating Cities, (2) a single Participating County and all of its Participating Cities or (3) a single Participating City. Two or more Regions may at their discretion form a group (“Multicounty Region”). Regions that do not choose to form a Multicounty Region will be their own Region”). ↑

4. Agreement B.5. ↑

5. Agreement D.3, D.5 (describing creation of the “New Mexico Backstop Fund” and that “after paying the LG Share of the costs of the Settlement Administrator, the Administrator shall deposit in the New Mexico Backstop Fund an amount equal to 15% of the LG Share and distribute the remainder of the funds allocated to Local Governments”). See also Agreement B.1 (describing settlement administrator costs as divided evenly between the state’s share and localities’ share). Note that these terms apply to the Distributors and Janssen settlements, as well as the settlements with Allergan, Teva, and “further national settlement agreements … joined by the State of New Mexico and Participating Local Governments after March 1, 2023”). Addendum to the New Mexico Opioid Allocation Agreement (Addendum). ↑

6. New Mexico hired private law firms to pursue its lawsuits against Walmart, Walgreens, CVS, Kroger, and Albertsons, incurring higher attorneys’ fees than the majority of states that opted to participate in national settlement agreements with these entities. As a result, of the total monies New Mexico recovered from the Distributors settlement and the settlements with Walmart, Walgreens, CVS, Kroger, and Albertsons, 28.2% will be paid to outside counsel. See LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. ↑

7. Agreement A.3 (defining "Opioid Related Expenditure” to mean “an expenditure consistent with the categories enumerated in Exhibit E to the Distributor Master Settlement Agreement and the J&J Master Settlement Agreement ... attached hereto as Exhibit B") and Agreement B.6 ("100% of the State Share and the LG Share, regardless of allocation, shall be utilized only for Opioid Related Expenditures”). See also Distributor Settlement Agreement I.SS (“Exhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expenses”). ↑

8. Agreement C.2 (“For avoidance of doubt, funds in a LG Abatement Fund may not be expended for costs, disbursements, or payments made or incurred prior to the Settlement”). ↑

9. Agreement C.1-2 (describing participating local governments’ spending autonomy). ↑

10. Agreement C.4 (“Local Governments may combine their respective portion of the LG Share with other Local Governments or the State”). ↑

11. Establishing a Policy for the Expenditure of Opioid Settlement Monies. Albuquerque City Council. R-23-174; City Council Approves Collaboration with Bernalillo County on Comprehensive Spending Policy for Opioid Settlement Funds. Albuquerque City Council News. October 16, 2023. Accessed August 11, 2024. ↑

12. See OpioidSettlementTracker.com’s Global Settlement Tracker. New Mexico hired private law firms to pursue its lawsuits against Walmart, Walgreens, CVS, Kroger, and Albertsons, incurring higher attorneys’ fees than the majority of states that opted to participate in national settlement agreements with these entities. As a result, of the total monies New Mexico recovered from the Distributors settlement and the settlements with Walmart, Walgreens, CVS, Kroger, and Albertsons, 28.2% will be paid to outside counsel. See LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. ↑

13. See LFC Hearing Brief. New Mexico Legislative Finance Committee. May 16, 2024. Accessed August 11, 2024. See, e.g., Curtis Segarra. New Mexico to use over one fourth of opioid settlement fees on outside lawyers, according to LFC. KRQE News. May 17, 2024. Accessed August 11, 2024. ↑

14. Hector Balderas and Brian McMath. New Mexico Deserves the Facts, Communities Will Receive Vital Treatment Dollars from Opioid Litigation. Rio Grande Sun. November 22, 2023. Accessed August 11, 2024. ↑

Can I provide input on spending?

• 55% local share: Up to each locality (not required). Local governments are not required to seek public input on uses of their shares. However, each may choose to seek such input. For example, Bernalillo County and the City of Albuquerque adopted mirror resolutions requiring the jurisdictions to engage in a strategic planning and public engagement process prior to spending their opioid settlement funds.[1] Watch for other opportunities to weigh in on city and county spending decisions, such as city council meetings and town halls.

  • Bernalillo County and the City of Albuquerque. In partnership with Vital Strategies and SBS Program & Evaluation Specialists, the county and city engaged in a robust community engagement process that included targeted community outreach, townhalls in each of the five county commission districts, townhalls and/or listening sessions with Pueblos and Native nations, and an online survey, among other strategies. This community engagement process was designed to:[2]

    • Improve community engagement between community members to listen, build relationships and learn from each other about the different ways city and county communities, individuals and families are affected by the overdose crisis.

    • Get community input, opinions, and ideas from across the city and county on how drug use and current responses to drug use affect the community and how responses and programs can be improved.

    • Create a report that summarizes the key themes from community feedback and share that report with City and County leadership.

• 45% state share: No opportunities available (not required). The state has not established recurring opportunities for the public to provide input on uses of its share.[3]

Can I apply for grants?

It depends. As of September 1, 2024, the state has not yet established any grant opportunities for its 45% share. Local governments may create grant programs to distribute their share of funds. The existence, parameters, and processes for local settlement grant programs will vary by locality, so stay alert for new opportunities. Visit the Opioid Settlement Community Grants Portal (OpioidSettlementTracker.com and Legal Action Center) for the most up-to-date information on settlement grant opportunities for community organizations.

Where do I go for updates?

• To find updates on the local share, a good starting point is to check the website for your county commission, city council, or local health department. See, e.g., City of Las Cruces.

• A single resource containing state share updates could not be found.[4]

What else should I know?

Not applicable.

Citations

1. Bernalillo County Administrative Resolution No. 2023-105, A Resolution Establishing a Policy for the Expenditure of Opioid Settlement Monies (October 10, 2023). City of Albuquerque Council Bill No. R-23-174, Resolution Establishing a Policy for the Expenditure of Opioid Settlement Monies (October 16, 2023). ↑

2. Community Engagement Plan for Opioid Settlement Funds Strategic Planning. Bernalillo County and City of Albuquerque (prepared by Vital Strategies). April 30, 2024. Accessed September 1, 2024. ↑

3. If you see this change, email tips@opioidsettlementtracker.com. ↑

4. If you see this change, email tips@opioidsettlementtracker.com. ↑

Here are the entities that ultimately decide how each of New Mexico’s opioid settlement shares are spent:

• 55% local share: local officials for cities and counties

• 45% state share: New Mexico state legislature

Has the state established an advisory body for settlement funds?

No. New Mexico has not established an advisory body to inform spending of funds from the 45% state share.[1]

Is the state advisory body required to include member(s) with lived and/or living experience?

Not applicable.

What is the overall membership of the state advisory body?

Not applicable.

Are local governments required to establish a settlement advisory body? If so, are local advisory bodies required to include member(s) with lived and/or living experience?

No (up to each locality). Local governments in New Mexico are not required to establish opioid settlement advisory bodies. However, localities may choose to establish advisory councils that include members with lived and/or living experience to help ensure that settlement spending reflects community priorities.

For example, Doña Ana County and the city of Las Cruces formed a joint in 2023 to recommend uses of the county and city’s respective opioid settlement funds.[2] The advisory committee meets monthly and includes people with lived/living experience, public health professionals, treatment providers, youth prevention specialists, representatives of recovery and other social service organizations, and other local stakeholders.[3]

What else should I know?

Learn more about the . The Council does not have a stated role on opioid settlement spending in any of New Mexico’s mechanisms but is charged with “reviewing the status of overdose prevention and pain management standards and education efforts.” You can subscribe to updates, view minutes and information about future meetings, or even submit an application to join the Council . For questions, contact Paul Maldonado ().

Citations

1. New Mexico’s is not explicitly afforded a role in opioid settlement-related spending decisions. ↑

2. “” City of Las Cruces. July 7, 2023, Press release. Accessed July 27, 2024. ↑

3. . City of Las Cruces website. Accessed June 24, 2024. ↑

New Mexico Department of Health

• Opioid Safety & Overdose Prevention

• Harm Reduction Program

• Opioid Safety & Overdose Prevention Resources

New Mexico Legislative Finance Committee

• LFC Hearing Brief (Update on Opioid Settlements) (May 16, 2024)

New Mexico Health Care Authority

• A Dose of Reality (incl. treatment map, links to obtain naloxone)

ASTHO Brief

• The Role of Syringe Services Programs in New Mexico’s Opioid Crisis Response (2021)