Members of VOCAL Kentucky and the Kentucky Harm Reduction Coalition, among other, rallying in front of Louisville City Hall on June 1, 2026.(Roberto Roldan / LPM )Louisville Metro could use $8 million from lawsuit settlements with the pharmaceutical companies that fueled America’s opioid crisis to cover existing expenses.Mayor Craig Greenberg has proposed using the opioid settlement funds to cover costs at the city's 911 call center, jail and other agencies that have previously been paid by tax dollars.Currently, 13 states ban or restrict this practice, known as budget supplantation, when dealing with settlement money, according to Johns Hopkins University. That’s because using opioid settlement funds to cover the costs of ongoing services comes with a tradeoff: It limits the amount of money available for providing additional resources to people struggling with addiction. Kentucky has no restrictions.Some local advocacy groups that work with people facing addiction and homelessness are pushing back on Greenberg’s proposal. Jennifer Twyman, an organizer with the nonprofit VOCAL Kentucky, said she was “dumbfounded” when she learned about the plan from an LPM News reporter.“That money is supposed to be saving lives,” Twyman said. “Using it for the 911 call center and for things that have already been funded for years, it shouldn’t be going to that. It’s as opposite from compassionate as a city could be to take money, blood money, and use it as his pocket money.”Twyman said the state and Metro Council are failing residents by not putting restrictions on the use of opioid funds and ensuring the money is expanding programs and services.The breakdown of the mayor’s proposal is:$2 million for 911 call center expenses$3 million for expenses related to the city’s 911 deflection program, which provides a nonpolice response to people in mental health crisis$1.5 million for medical addiction treatment at the Louisville jail$1.2 million for Goodwill’s Another Way, a work program for people experiencing homelessnessAnd $200,000 for Department of Public Health and Wellness personnel to administer opioid settlement fundingThe city was already paying for all of that with its own tax revenue, besides the public health employees.Matt Mudd, a spokesperson for Greenberg, said in a statement the settlement money helps communities address the impacts of the opioid crisis, including “increased overdoses, substance use disorders, demands on emergency services, public safety challenges, and strain on local resources.”“These funds are intended to support proven strategies that prevent harm, expand access to treatment and recovery services, and improve community well-being,” Mudd said.Asked specifically about paying for existing expenses with these funds, Mudd said the plan complies with state law and the settlement.Louisville Mayor Craig Greenberg's proposal for opioid settlement funds includes paying for ongoing city expenses.(Louisville Mayor's Office / Submitted )Universities, advocates and groups representing local governments have all warned about this type of budgeting practice.In 2025, Greenberg’s then-spokesperson Kevin Trager cited guidance from the Johns Hopkins Bloomberg School of Public Health to explain why the administration was investing in primary prevention programs, such as addiction education in public schools.The same guidance from Johns Hopkins also encourages cities to “supplement rather than supplant existing funding” to ensure that “dollars from any opioid related settlements are additive to existing efforts.”“Given the economic downturn, many states and localities will be tempted to use opioid settlement dollars to fill holes in their budgets rather than expand needed opioid programs,” the guidance states. “Jurisdictions should use the funds to supplement rather than replace existing spending.”The Kentucky Association of Counties has likewise discouraged the practice, while acknowledging that it is legal in Kentucky. In its best practices published in 2025, the association said county leaders should “focus on supplementing resources to maximize the impact of settlement funds.”Greenberg presented his proposed budget, including the settlement spending, to Louisville Metro Council in late April.The council has spent the time since then vetting the budget and hearing from leaders of city agencies. Council members are now hammering out a list of proposed changes to Greenberg's spending plan, which they will approve by the end of this month.Markus Winkler, a District 17 Democrat and vice-chair of the council’s Budget Committee, said the issue of budget supplantation is nuanced.“There’s a question of do you need to expand programming with this or do you already have things in the works that are effective, so funding them with it is appropriate,” he said.Asked if he was concerned about the mayor’s proposal, Winkler said, “Yes and no.”“Is it the best use of funds? Would you ideally add new services? Maybe,” Winkler said. “But, if I sort of flip the argument on its head, the other questions would be, ‘What happens when these opioid funds run out?’ Now you’ve got to cut these programs.”According to city officials, Louisville expects to receive roughly $57 million by 2040 from the settlements with opioid manufacturers.Winkler said the opioid spending proposal will be one of many topics council members will discuss ahead of a final budget vote.Republican Council Member Kevin Kramer of District 11, the Budget Committee chair, did not respond to multiple emailed interview requests.Advocates at odds with officialsAdvocates held a rally outside City Hall earlier this month, demanding the city be more transparent and include more people who have been directly impacted by the opioid crisis in the decision-making process.Attica Scott, a former state legislator and head of special projects for the group Forward Justice Action Network, led the group in chants of, “Nothing about us without us.”“That money exists because of our suffering,” Scott said. “It belongs to our healing, and yet right now there are forces in this city and in the state, quite frankly, that want to take those funds and pour them into more policing, more jail beds, more punishment.”Scott, along with other representatives from groups like VOCAL Kentucky and the Kentucky Harm Reduction Coalition, want the city to use the settlement funds to invest in what they say are evidence-based solutions: community-based opioid treatment programs, needle exchange and other harm reduction measures and low-barrier shelter for people experiencing homelessness.Many advocated for putting settlement funds toward helping keep the Arthur Street Hotel from closing its doors later this month.Twyman, with VOCAL Kentucky, also noted the city has not been forthcoming with this latest round of proposed spending.Last year, officials included roughly $5 million in opioid settlement funds in the city’s annual budget. It was clear from budget documents that the funding was going to emergency services and expanding homeless shelter capacity.This year, though, the budget did not say what the $8 million would fund. Many advocates only found out after LPM News asked the Greenberg administration for the details multiple times.“These dollars were won because families buried their loved ones and communities fought for accountability,” Twyman said. “We shouldn’t have to fight again just to make sure the money actually reaches the people it was meant to help.”An LPM News reporter asked Greenberg about some of these criticisms at a press conference on June 2. The mayor called the lack of transparency in budget documents an “oversight,” and argued the city is investing in programs serving people with addiction through other parts of the budget.“There are a lot of other funds that we’re also investing in organizations and programs to help people who are struggling with mental health crises, with substance abuse issues … whether its organizations, whether its direct programs that Louisville Metro does,” he said.Greenberg said city funding for affordable housing and homelessness is also addressing the impacts of the opioid epidemic because “many individuals that have struggled with addiction find themselves having issues with housing, as well.” ...read more read less