Money meant to fight addiction sits unspent in West Michigan communities

Advocates in the Forest Hills and East Grand Rapids area are urging local leaders to spend opioid settlement money immediately. They say the funds are sitting in bank accounts while people continue to die from overdoses.

East Grand Rapids currently holds approximately $42,871 in unspent opioid settlement funds, according to a report by FOX 17. The city has approved seven settlement agreements since 2021 and receives between $7,000 and $9,000 annually. Total payments to the city are expected to reach about $129,000 over 18 years.

"People are dying right now in all of our communities," said Steve Alsum, executive director of Red Project, a Grand Rapids-based nonprofit providing harm reduction and recovery services.

A former addict turned advocate

Josh McLenithan knows the crisis personally. He said he used IV heroin for about 15 years, starting with prescription pain medications in the early 2000s. After going to prison for stealing to support his habit, McLenithan found his way to Red Project.

"I came across the red project as a place that I had actually utilized services. I used to come here to get my needles all the time. I didn't really know about all of their programming," McLenithan said.

McLenithan now serves as programs operations director at Red Project. The organization provides naloxone rescue kits, HIV and Hepatitis C testing, and a drug checking program. It is currently placing 100 newspaper boxes around town with free naloxone kits, funded through opioid settlement dollars.

Statewide pattern of unspent funds

The situation in East Grand Rapids mirrors a larger problem across Michigan. According to the Associated Press, local governments across the state had received $214 million in opioid settlement funds through December 2025 but had spent only $38 million. That leaves roughly $176 million sitting in bank accounts.

Of 258 local governments that reported spending to the attorney general, 75 had not spent any funds as of December 10, 2025. Twelve counties, all in northern Michigan or the Upper Peninsula, had yet to spend any money.

"If even half of that went to a group like the Red Project, that money would go to work immediately, helping save lives, as opposed to sitting there for a couple of years and people are dying," said Dr. Jonathan Stoltman of the Opioid Policy Institute, who recently raised concerns about unspent funds before the East Grand Rapids City Commission.

Strict rules on how funds can be used

Opioid settlement funds come with legal restrictions. The money must be used for "opioid remediation," which includes treatment, recovery support, prevention efforts, first responder support, and research.

Shea Charles, city manager of East Grand Rapids, said the city has not spent any funds yet because the initial amounts were small. The city is evaluating how to achieve the greatest impact, possibly by coordinating with Kent County's broader strategy.

What the numbers mean for residents

• $42,871: Unspent opioid settlement funds in East Grand Rapids
• $129,000: Total expected opioid settlement payments to East Grand Rapids over 18 years
• $214 million: Total opioid settlement funds received by Michigan local governments
• $38 million: Amount spent by Michigan local governments (17.7%)
• $176 million: Unspent opioid settlement funds across Michigan local governments
• 1 in 6 hours: Average time between opioid overdose deaths in Michigan
• 1,700: Opioid overdose deaths in Michigan in 2025, the lowest since 2013

Attorney General Dana Nessel released spending guidance and a transparency report in May 2026 to help local governments deploy funds more effectively. Her office said the resources are designed to ensure settlement money remains focused on recovery, prevention, and healing.

McLenithan addressed a common concern about harm reduction work.

"One of the most common misconceptions is that naloxone enables people to use drugs," McLenithan said. "Dead people don't recover."

East Grand Rapids leaders say no final decisions have been made on how to spend the funds. Advocates hope the conversation continues.

"A lot of what I think is needed through the opioid settlement dollars is just expanding access to those life saving tools," Alsum said.