Council directs $3 million toward community opioid-abatement grants, reserves $2.2 million for homelessness work; further allocations deferred

Lexington — The Lexington City Council agreed April 21 to fund a tiered community grants program with $3,000,000 from the city’s opioid‑abatement settlement proceeds and to reserve $2,200,000 for homelessness‑related projects that meet the abatement criteria, amid a divided council debate over whether to spend more now or preserve funds for long‑term sustainability.

Commissioner Allen Bryant and staff presented an “initial spending plan” for roughly $9,000,000 already received and an estimated $30,000,000 over time from national opioid litigation settlements. Bryant told council the administration recommends placing $3,000,000 into an interest‑bearing account and setting 25% of future allocations to that account to generate recurring annual interest for grants and sustained programming. He noted the estimates of future payments and timing were uncertain.

Several nonprofit leaders and service providers urged the council to move money into the community quickly. Ashley Dunsmore of the Lexington Nonprofit Coalition told the council: “Placing $3,000,000 dollars today and 25% of all future allocations into an interest‑bearing account seems out of step with the intent of the funds, which is to respond to the crisis that exists today.” Trevor Davis, a resident who testified, said the funds are one of the few sources for harm‑reduction and prevention and urged spending to address current needs.

Council members split over the approach. Vice Mayor Wu and others argued for faster deployment to community providers, saying nonprofits and city programs have unmet needs now and that state funds have been held back until local funds are spent. Supporters of the administration’s sustainability approach, including Commissioner Bryant and several council members, said a larger principal would produce more meaningful recurring interest so the city could maintain consistent grant programs over many years.

After extended discussion, Council Member Lynch moved to allocate $3,000,000 to a tiered community grants program (micro and macro grants); the motion was seconded and amended on the floor to ensure the additional $1,000,000 for the grant package would come from unassigned funds rather than by reducing the homelessness set‑aside. Council also adopted an amendment to reserve $2,200,000 for the homelessness task force recommendations that meet opioid abatement criteria. The package was approved by voice vote; the administration will return next week with budget amendments and the blue‑sheet documents needed to implement the allocations.

Commissioner Bryant said the administration will release a request for proposals for the grants program and aims for a July 1 release of grant materials. He cautioned that award timing, amounts and future settlements are uncertain: “there are no guarantees regarding the amounts or timing of any future payments,” he told the council.

Council members asked for clarifications about grant term lengths and whether interest income would be restricted to abatement purposes; staff answered that micro grants (up to $75,000) were envisioned as one‑year awards and macro grants would be split over two years, and that interest and principal would need to be spent on opioid‑abatement‑eligible activities.

Actions at a glance

- Funding approved: $3,000,000 to a tiered community grants program (moved by Council Member Lynch; seconded by Vice Mayor Wu). The motion was amended on the floor to source an extra $1,000,000 from unassigned funds rather than homelessness‑task‑force money. (Voice vote; individual roll‑call not recorded.)

- Reserved: $2,200,000 for homelessness task‑force recommendations tied to opioid‑abatement criteria (approved as an amendment).

- Remaining funds and accrued interest: left unassigned for future council discussion and formal budget amendments.

Why it matters

Council members and local providers said the city has sat on settlement proceeds for years while the opioid crisis continued. The decisions move money into a grant process and to homelessness work while preserving a portion of funds for future deliberation, reflecting competing priorities between immediate relief and a plan for recurring, sustainable support.

What’s next

Staff will return with formal budget amendments and program details (including grant application timelines and review committees) at the next work session and will begin developing grant criteria with partners and the opioid abatement commission. The administration aims to release the grants RFP by July 1.