The Opioid Abatement Trust Fund holds the state government’s 50% share of opioid settlement funds (i.e., the “Commonwealth Share”).[1]
With limited exceptions,[2] funds from the Commonwealth Share must be spent on the uses described in state law, KRS 15.291(5).[3] This state law outlines:
28 categories of permissible forward-looking abatement projects.[4] These categories vary widely and include, for example, projects to provide access to opioid-abatement-related housing (e.g., supportive housing) and “evidence-informed treatment, recovery support, harm reduction, or other appropriate services to individuals with OUD and co-occurring SUD/MH issues” who are justice-involved.
3 categories of permissible reimbursement expenses: outpatient and residential treatment services, emergency response, and naloxone administration.[5]
Funds may also be used for "[a]ny other project deemed appropriate for opioid-abatement purposes by the [Kentucky Opioid Abatement Advisory Commission].”[6]
Kentucky Opioid Abatement Advisory Commission decides. The (KYOAAC) ultimately decides specific expenditures for the Commonwealth Share and distributes the funds via grants.[7] Both non-governmental entities such as community-based and non-profit organizations and government agencies may apply for grants through KYOAAC’s .[8]
The application process is as follows:
An application is submitted via the KYOAAC grant portal.
KYOAAC reviews applications on a continuous basis according to a range of ,[9] such as:
Applicant’s record of effectively utilizing settlement funds previously.
Geographic reach and extent to which project would reach un(der)served. populations.
No, supplantation is not prohibited. Like most states, Kentucky does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 50% Commonwealth share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.
Yes (public reporting required). Visit the KYOAAC’s and , which provide information on expenditures of both state and local opioid settlement funds. The dashboards include grant amounts, recipients, county, funding source, and category of funding. Kentucky state law requires KYOAAC to maintain a website on which it publishes funding awards and reports of funding.[11]
Visit OpioidSettlementTracker.com’s for the most up-to-date information on states’ and localities’ available expenditure reports.
Not applicable.
Ky. Rev. Stat. Secs. 15.293(2), (3)(a). ↑
See Ky. Rev. Stat. Secs. 15.293(9)(a) (“The Department of Law may recover its reasonable costs of litigation from the moneys received under subsection (3)(a) of this section”), (9)(b) (“The Department of Law may recover any direct costs, including employee time, used to perform or administer the duties required by this section and KRS 15.291 from the moneys received under subsection (3)(a) of this section. The Department of Law shall report all such recovered costs to the commission no less than annually”). ↑
Ky. Rev. Stat. Secs. 15.291(5), 15.293(5). ↑
Incorporation of relevant partnerships
Alignment with evidence-based practices.
Recipients of granted funds must submit regular financial reports through the KYOAAC grant portal.[10]
Ky. Rev. Stat. Sec. 15.291(5)(a). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b)(29). ↑
Ky. Rev. Stat. Sec. 15.291(5). ↑
40 Ky. Admin. Regs. 9:010, Sec. 2 (“An entity or governmental agency shall be eligible for opioid abatement funding…”). See also 40 Ky. Admin. Regs. 9:010, Sec. 1(1) (defining “Entity” to have the same meaning as in KRS 14A.1-070(7)); Ky. Rev. Stat. Sec. 14A.1-070(7) (An “entity” is “a corporation, business or statutory trust, partnership, limited partnership, limited liability company, limited cooperative association, or unincorporated nonprofit association, governed as to its internal affairs by the laws of the Commonwealth of Kentucky”). Note that “[t]o submit an application using the OAAC Grant Portal, an applicant shall be required to become an approved state vendor.” 40 Ky. Admin. Regs. 9:010, Sec. 3(1). ↑
40 Ky. Admin. Regs. 9:010, Sec. 4(4). ↑
40 Ky. Admin. Regs. 9:010, Sec. 5. Entities or governmental agencies that fail to comply with the financial reporting requirement “forfeit any remaining funds received from the commission” and are banned from receiving future funds from the commission. 40 Ky. Admin. Regs. 9:010, Sec. 6(3)-(4). ↑
Ky. Rev. Stat. Sec. 15.291(7)(a). ↑
2022 Ky. Acts ch. 230, Sec. 13, as amended by 2026 Ky. Acts ch. 122, Sec. 3. ↑
50% Commonwealth share: the .
50% local share: decisionmakers for counties, consolidated local governments, urban-county governments, and cities
Kentucky's local government share is distributed to its “counties, consolidated local governments, urban-county governments, and cities.”[1] Funds are distributed according to a pre-determined formula.[2] The Kentucky Association of Counties (KACo) recommends that local governments keep these monies in a separate special account/fund.
With limited exceptions,[3] each local government receiving funds from this share must spend at least 85% of the funds on the uses described in state law, KRS 15.291(5).[4] This state law outlines:
28 categories of permissible forward-looking abatement projects.[5] These categories vary widely and include, for example, projects to provide access to opioid-abatement-related housing (e.g., supportive housing) and “evidence-informed treatment, recovery support, harm reduction, or other appropriate services to individuals with OUD and co-occurring SUD/MH issues” who are justice-involved.
3 categories of permissible reimbursement expenses: outpatient and residential treatment services, emergency response, and naloxone administration.[6]
Funds may also be used for "[a]ny other project deemed appropriate for opioid-abatement purposes by the [Kentucky Opioid Abatement Advisory Commission].”[7]
Local governments decide autonomously (but must report on spending). Though decision-makers for the counties, consolidated local governments, urban-county governments, and cities decide for themselves how to spend their share,[8] they must submit annual certifications to the Kentucky Opioid Abatement Advisory Commission (KYOAAC) with detailed information on settlement spending.[9]
No, supplantation is not prohibited. Like most states, Kentucky does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that counties, cities, and towns may spend their shares in ways that replace (or “supplant”) — rather than supplement — existing resources.
Yes (no public reporting required, only intrastate). Visit the Kentucky Opioid Abatement Advisory Commission’s and , which provide information on expenditures of both state and local opioid settlement funds. The dashboards include grant amounts, recipients, county, funding source, and category of funding. The KYOAAC requires that local governments submit an annual certification report that includes detailed information about local settlement spending.[13] KYOAAC compiles information from these reports for publication on its public dashboards, though this is not required.
Visit OpioidSettlementTracker.com’s for the most up-to-date information on states’ and localities’ available expenditure reports.
According to a from the Kentucky Center for Economic Policy, over 90% of opioid settlement funds received by local governments in Kentucky remained unspent at the end of fiscal year 2025.[15]
Ky. Rev. Stat. Secs. 15.293(4)(a) (“The [opioid abatement trust] fund shall not consist of the remaining fifty percent (50%) of all proceeds received by the Commonwealth, counties, consolidated local governments, urban-county governments, and cities of the Commonwealth”), (4)(b) (“To the extent that the negotiation class distribution metrics would result in a city receiving a total of less than $30,000 in any individual settlement, judgment, or bankruptcy proceeding, the payment is instead made to the county, consolidated local government, or urban-county government in which that city is located”). ↑
Ky. Rev. Stat. Sec. 15.293(4)(b) (“paid to counties, consolidated local governments, urban-county governments, and cities of the Commonwealth in accordance with the negotiation class distribution metrics established in In re National Prescription Opiate Litigation, MDL No. 2804, Case No. 1:17-md-02804, in the United States District Court for the Northern District of Ohio unless precluded by order of a court of competent jurisdiction in connection with any settlement, judgment, or bankruptcy proceeding”). This formula is based on factors such as population, amount of prescription opioid sales, number of people with pain reliever use disorder, and number of overdose deaths. ↑
Ky. Rev. Stat. Secs. 15.293(4)(c)(2)(a), 15.295(4) (“No less than eighty-five percent (85%) of the proceeds received by each county, consolidated local government, urban-county government, or city of the Commonwealth shall go toward abatement of the opioid epidemic in those communities”). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b). ↑
Ky. Rev. Stat. Sec. 15.291(5)(a). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b)(29). State law also allows settlement funds to be used for any project that “[m]eets the criteria included in any settlement agreement or judgment between the parties listed in KRS 15.293(3)(a).” Ky. Rev. Stat. Sec. 15.291(b)(28). This means that funds from both the Commonwealth Share and Local Share may be spent for any purpose consistent with “Exhibit E” of the settlement agreements. ↑
Ky. Rev. Stat. Secs. 15.293(4)(b), (4)(c)(2). ↑
40 Ky. Admin. Regs. 9:020, Sec. 2. Failure to submit the required certifications or other noncompliance may result in a local government being required to reimburse the Kentucky Opioid Abatement Advisory Commission and/or have future funding withheld. Ky. Rev. Stat. Sec. 15.293(4)(c)(2)(d); 40 Ky. Admin. Regs. 9:020, Sec. 3(2). However, the basis for reimbursement is unclear since funds in this share are distributed directly to local governments and not otherwise controlled by KYOAAC.. ↑
[Reserved]. ↑
[Reserved]. ↑
[Reserved]. ↑
Ky. Rev. Stat. Sec. 15.293(4)(c)(2)(a); 40 Ky. Admin. Regs. 9:020, Sec. 2. See also . Kentucky Opioid Abatement Advisory Commission website. Accessed September 21, 2026. ↑
2022 Ky. Acts ch. 230, Sec. 13, as amended by 2026 Ky. Acts ch. 122, Sec. 3. ↑
Ashley Spalding and Patience Martin. . Kentucky Center for Economic Policy. June 29, 2026.