Governments use opioid settlement funds for homelessness, raising accountability concerns

State and local governments reported spending more than $340 million in opioid settlement funds on housing-related initiatives in 2025, according to an analysis by KFF Health News, the Johns Hopkins Bloomberg School of Public Health and Shatterproof. That was about 9% of roughly $3.7 billion publicly reported as spent or committed that year. Projects included rental vouchers, recovery housing and help navigating services.

Some programs target people with substance use disorders, while advocates worry others fund general homelessness services with no clear connection to addiction. Connecticut’s housing program, funded with about $59 million in settlement cash, requires participants to have a verified substance use disorder. In New Brunswick, New Jersey, officials did not provide details linking $520,000 for “homeless services” to addiction. Housing is an allowable use of settlement funds, but the report says oversight and public tracking have gaps.