Critics accuse New Jersey legislators of ‘stealing' opioid settlement funds

Yahoo

01-07-2025

Harm reduction advocates staged a die-in at the Trenton Statehouse on Monday, June 30, 2025, after legislators — fearing federal Medicaid cuts would hurt hospitals — decided to divert $45 million in national opioid settlement funds to four of the state's largest hospitals. (Dana DiFilippo | New Jersey Monitor)
New Jersey legislators diverted $45 million from national opioid settlement funds to four hospitals in the $58.8 billion state budget they approved Monday — a last-minute surprise that drove harm-reduction advocates to protest in the Statehouse and the state attorney general to object in unusual public criticism of state lawmakers.
Sen. Paul Sarlo (D-Bergen), who chairs the Senate's budget committee, said the diversion is meant to make up for losses the hospitals are expected to experience from federal Medicaid cuts.
'The thought process here is … to get some of the monies to some of the larger hospital systems for their harm reduction community-based programs, because they're going to take a hit,' Sarlo said. 'These hospitals are going to be on the front line of these Medicaid cuts.'
But Attorney General Matt Platkin said the hospitals will receive the money for uses not yet identified, despite a new five-year strategic plan a state advisory council released two weeks ago that requires beneficiaries to spend settlement funds on evidence-based solutions that help people recover from addiction.
The new appropriation, which he said he learned of Sunday night, 'ignores' that plan, he added.
'These settlement funds are not general revenues for the State. They are the result of some of the most significant lawsuits ever filed by Attorneys General across this country to force companies to pay back the blood money that they stole in fueling the opioid epidemic,' Platkin said in a statement. 'Spending this money in this way is a slap in the face to every family who lost a loved one in this devastating crisis, which continues to claim the lives of thousands of New Jerseyans each year.'
He warned lawmakers about 'repeating the mistakes made with the state's tobacco settlement funds, which should have been used exclusively to address damage caused by cigarettes.'
Harm reduction advocates echoed his concerns, accusing lawmakers of a 'blatant misuse' of settlement funds in weekend deals brokered in secrecy.
Dozens lined a Statehouse hallway to implore passing legislators to vote against the allocation, as they waved tombstone-shaped signs with slogans including 'Stealing sux! Fund harm redux!' and 'Here lie legislators' consciences.' They staged a die-in, partially blocking passers-by until state troopers intervened to move them along, and later, several were kicked out of the building after they unfurled a sign and began shouting during the Senate's session.
Jenna Mellor, who heads the New Jersey Harm Reduction Coalition (pictured on ground), leads a die-in at the Trenton Statehouse on Monday, June 30, 2025. Petra Gaskins, the chief of staff (pictured in blue suit) for Sen. Joe Cryan, stops to hear her concerns. Harm reduction advocates were protesting a plan by legislators to divert $45 million in national opioid settlement funds to four of the state's largest hospitals, in response to anticipate federal Medicaid cuts. (Dana DiFilippo | New Jersey Monitor)
Harm reduction advocates protested at the Trenton Statehouse on Monday, June 30, 2025, after legislators decided to divert $45 million in national opioid settlement funds to four of the state's largest hospitals, in response to anticipated federal Medicaid cuts. (Dana DiFilippo | New Jersey Monitor)
Sen. Anthony Bucco (R-Morris) smiles as he passes harm reduction advocates protesting a controversial budget allocation on Monday, June 30, 2025, in a Statehouse corridor. (Dana DiFilippo | New Jersey Monitor)
Harm reduction advocates staged a die-in at the Trenton Statehouse on Monday, June 30, 2025, after legislators — fearing federal Medicaid cuts would hurt hospitals — decided to divert $45 million in national opioid settlement funds to four of the state's largest hospitals. (Dana DiFilippo | New Jersey Monitor)
Harm reduction advocates protested by unfurling a banner during a Senate session at the Trenton Statehouse on Monday, June 30, 2025, after legislators decided to divert $45 million in national opioid settlement funds to four of the state's largest hospitals, in response to anticipated federal Medicaid cuts. (Dana DiFilippo | New Jersey Monitor)
Jenna Mellor heads the New Jersey Harm Reduction Coalition and was a member of the advisory council, which spent 15 months hearing testimony from hundreds of people to devise its strategic plan.
'This was not in our recommendations,' Mellor said. 'We gave very intentional recommendations for five areas that will save lives — harm reduction expansion, medicine for opioid use disorder, housing, wraparound services, and legal services. We will not be able to fund those things, if the hospitals keep getting this money.'
New Jersey will receive $1.1 billion in settlement funds through 2038, with half going to the state and the other half directly to county and local governments.
The $45 million going to hospitals in the coming budget year represents 10% of the state's total share, as well as the single-biggest settlement fund expenditure in the fiscal year that begins Tuesday, advocates said.
Racquel Romans-Henry, policy director of Salvation and Social Justice, joined advocates' protest at the Statehouse.
'Historically in this state, hospitals have, for better or worse, been the source of a lot of the racial disparities that exist around health care,' Romans-Henry said. 'Giving them this kind of money — when they neither need it and when so many grassroots organizations are reeling from federal cuts and are doing the work on the ground — is really a misalignment of the funds and the intent of the funds.'
Platkin urged legislators to reject the appropriation, but also vowed: 'If they do not, my office will be carefully scrutinizing these hospital systems to make sure every single dollar is spent within the terms of the settlements we fought for years to obtain.'
Spending this money in this way is a slap in the face to every family who lost a loved one in this devastating crisis.
– Attorney General Matt Platkin
Four hospitals will receive the funds, advocates said. RWJBarnabas Health and Cooper University Hospital will get $15 million each, Hackensack University Medical Center will get $10 million, and Atlantic Health System will receive $5 million.
Spokespeople for Gov. Phil Murphy did not respond to a request for comment, but Sarlo said Murphy had signed off on the allocation.
Murphy's former chief of staff, George Helmy, is an executive vice president at RWJ Barnabas and chief of its external affairs and policy office, while Cooper University Health Care is run by South Jersey Democratic power broker George Norcross, another Murphy ally.
Bre Azanedo said grassroots organizations like Black Lives Matter-Paterson, where she serves as a program manager, are more trusted, effective harm reduction providers than hospitals. She also raised concerns about accountability.
'If they're going to add 'no deliverables, no strings attached,' then that should also apply to us, as organizations,' Azanedo said. 'They make us jump through hoops of fire for $20.'
Tonia Ahern, community coordinator for the National Center for Advocacy and Recovery, warned that 'funding enormous health systems' won't solve the overdose crisis.
'We hear horror stories all the time about people being mistreated and discriminated against at the hospital with no accountability,' Ahern said. 'And what happens to people once they leave with no support, or access to medications and individualized care? It's going to fall on harm reduction and recovery organizations to pick up the pieces, and now with less funding.'
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