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General Framework for Expenditures

The Michigan Department of Attorney General has received several inquiries from Local Governments who have been approached by companies selling products and services purported to comply with opioid settlement spending requirements.

As you may know, the opioid settlements contain a non-exhaustive list of uses for opioid settlement funds (Exhibit E in the opioid settlements). Caution is recommended when being approached by companies selling products and services that are not specifically listed in Exhibit E. Further, Exhibit E expresses a preference for evidence-based or evidence-informed programs and spending strategies. Local governments should be able to connect opioid settlement expenditures to the evidence-based or evidence-informed practice they are advancing or specific sections contained in Exhibit E.

Examples of different practices are provided below:

  • Example 1: Local Government A was approached by the ACME Corporation about purchasing automated external defibrillators (AEDs) with opioid settlement funds. ACME Corporation is offering a discount and Local Government A would like more AEDs. ACME Corporation says that Local Government G purchased AEDs without issue. ACME Corporation supplies a proposal containing an Exhibit E reference and an American Heart Association Reference. However, after research, the Town Counsel cannot find a specific section or clause of Exhibit E that references AEDs. The Town Counsel reviews the American Heart Association’s “2025 American Heart Association Guidelines for Cardiopulmonary Resuscitation and Emergency Cardiovascular Care”, but AEDs aren’t mentioned in the Opioids section. Further, the Town Counsel reviews the Michigan EMS protocol for Opioid Overdose Treatment and Prevention, but AEDs are not mentioned there either. Local Government A decides that it will use a different funding source to purchase AEDs instead of opioid settlement funds.
  • Example 2: County Government B began a Medication-Assisted Treatment (MAT) program for people in the county jail with opioid-use disorder (OUD) and other substance-use disorder (SUD) or mental health problems (MH disorder). County Government B would like to expand that program to more people, after receiving a recommendation from its Opioid Settlement Spending Task Force. The County Commission reviews Exhibit E and finds specific support for their proposal under Section D(4). County Government B moves forward with its expansion plan and dedicates a percentage of opioid settlement funds to the MAT program.

As a reminder, opioid settlement funds must be spent for opioid remediation. At least 70% of opioid settlement funds must be used for future opioid remediation per the terms of the opioid settlement agreements and the Michigan State-Subdivision Agreement. Opioid remediation is a defined term, meaning the “Care, treatment, and other programs and expenditures (including reimbursement for past such programs or expenditures except where [the Settlement] Agreement restricts the use of funds solely to future Opioid Remediation) designed to (1) address the misuse and abuse of opioid products, (2) treat or mitigate opioid use or related disorders, or (3) mitigate other alleged effects of, including on those injured as a result of, the opioid epidemic. 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.”

Last Updated December 10, 2025