AG—office: Kroger settlement funds due soon; Walgreens, Purdue updates and federal funding risks noted

Chris, an Attorney General—office representative, told the Kansas Funding Authority board that a court order requires payments from the Kroger settlement and "we will anticipate receiving funding from that settlement," with distributions "probably starting next month," he said.

The AG—office update also flagged progress in the Purdue bankruptcy: Chris said a public resolution has been announced that would include a contribution from the Sackler family, but he had "no timeline" and "no dollar amount to report." He said the office will update the board when more details are available.

Chris warned the board about potential instability in other pharmacy-related settlements. He noted Walgreens has undergone a sale to a private equity firm and that the settlement payments the state expects were scheduled over multiple years; the office is working at state and national levels to protect those revenues but "we'll have to determine whether or not that will result in a reduction of the amount of money," he said.

Board member Sandra asked whether the AG—office is tracking federal policy changes that could alter funding. Chris said the office is not formally tracking those developments at the agency level but that he has been following public reporting and flagged recent reports that SAMHSA may face staffing and funding cuts. He asked board members to forward any relevant information to the office so it can assess impacts on state funding and strategy.

Why it matters: the KFA is a significant state grantmaker; changes in settlement flows and federal program funding could affect what the board can award and how it prioritizes grants going forward. The AG—office committed to provide dollar amounts and updated projections when they are available.

The board did not take formal action on the AG—office updates at this meeting; members asked that the office keep the board informed at future meetings.