Washington, D.C. faces dispute over opioid settlement fund usage

Washington, D.C. is facing scrutiny over its fiscal 2027 budget proposal, which seeks to use opioid settlement funds to cover existing municipal obligations. The plan includes directing approximately $2.3 million toward the District’s Medicaid contribution and at least $5.5 million to addiction treatment centers that were previously funded through the city’s general budget.

Chad Jackson, chair of the District’s Opioid Abatement Advisory Commission, has criticized the move as “supplantation.” He argues that using settlement money to replace general funds prevents an actual increase in spending on the crisis, as these services would have been funded regardless. This approach may conflict with District law, which mandates that opioid settlement funds must “supplement, and not supplant” existing spending.

The District is expected to receive more than $100 million from litigation against companies accused of contributing to the opioid epidemic. While the budget has passed the D.C. Council, it is currently undergoing a 30-day congressional review.