NEWS
Report: New Mexico cities and counties spending opioid settlement funds at slow pace
Provider shortages, coordination gaps among reasons cited for spending delays
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SANTA FE 鈥� Over the last three years, New Mexico cities and counties have received roughly $110 million under an opioid settlement agreement to expand drug treatment and prevention programs.
But putting those dollars to effective use has proven challenging, as about half of the counties and most municipalities that received funds did not report spending any of the money, according to a report from State Auditor Joseph Maestas鈥� office.
鈥淭his is really important,鈥� Maestas said in an interview this week. 鈥淚t鈥檚 important for the state 鈥� and for the people who are receiving services as well.鈥�
New Mexico has one of the nation鈥檚 highest drug overdose death rates, and experienced the country鈥檚 largest increase in drug overdose deaths in 2025, primarily due to fentanyl. Rio Arriba, Socorro and Sierra counties had the state鈥檚 highest overdose death rates as of 2021, according to Department of Health data.
Given the state鈥檚 struggles with drug addiction, former state Attorney General Hector Balderas in 2017 entered the state into a series of multistate lawsuits against pharmaceutical manufacturers and distributors for their role in the opioid crisis.
New Mexico eventually settled with several corporations, including Walmart, CVS and Walgreens, which agreed to pay the state a total of $920 million 鈥� spread out over a 16-year period. That money is being split between state agencies, local governments and the outside legal counsel hired by the state.
While the funds are intended to be spent on drug treatment and prevention programs, a statewide shortage of behavioral health providers has complicated that effort.
As of 2024, of New Mexico residents with substance use disorders, a term that encompasses drug addiction, were receiving treatment, a Legislative Finance Committee report found.
In addition to provider shortages, the released this week by the state auditor鈥檚 Government Accountability Office also cites uncertainty about appropriate uses and a lack of state-local collaboration as other reasons for the slow pace of opioid settlement funds.
Among the specific challenges, the report highlighted Do帽a Ana County鈥檚 initial struggles to launch a program aimed at maternal and child health. After not receiving any applications from providers, the county changed its focus to building a more stable pipeline for providers.
Meanwhile, some of the New Mexico counties and municipalities that received opioid settlement funds have teamed up on spending plans, the audit report found.
That includes nine counties 鈥� plus the village of Los Lunas 鈥� that have formed a regional collaborative. The city of Albuquerque and Bernalillo County have also formed a partnership in hopes of avoiding spending duplication and maximizing the funds鈥� impact.
The Office of the State Auditor report was based on evaluations of local governments鈥� annual audits, as well as a survey of counties and municipalities that got settlement funds. A separate report focusing on state agencies鈥� handling of opioid settlement agreement funds is expected to be released next month.
Eventually, Maestas said a new region-based behavioral health system that鈥檚 still being rolled out could provide more structure for spending the funds.
鈥淭his is a wake-up call because lives are at risk,鈥� said Maestas, who was previously the mayor of Espa帽ola and a Santa Fe city councilor before being elected state auditor in 2022.
However, he also cautioned that his office has the authority to temporarily halt funding allotments to any cities or counties that do not spend the money on appropriate expenditures.
Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com.
