CITY OF MENIFEE
SUBJECT: National Opiate Litigation Settlement Fund Allocation MEETING DATE: August 19, 2026
TO: Mayor and City Council
PREPARED BY: Christine Booker, Budgets & Grants Analyst REVIEWED BY: David Gutierrez, Police Chief
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Authorize the City Manager, or his designee, to program the National Opiate Litigation Settlement Funds received through July 23, 2026, for prevention education and intervention programs reaching vulnerable populations including homeless and at-risk youth residing within the City; and
2. Adopt a budget amendment resolution (BAR) approving an increase in revenue and appropriation of expenditures in the amount of $54,574.25 to the project account as assigned by the Finance Department for the use of the funds received from the Kroger and Distributors Settlements, Allergan, CVS, TEVA, Walgreens and Walmart Settlement Funds.
DISCUSSION
The State of California joined a national lawsuit against manufacturers, distributors, and other entities deemed responsible for aiding the opioid epidemic. On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals, Inc. (parent company of Johnson & Johnson) and the “big three" distributors, McKesson, AmerisourceBergen, and Cardinal Health (the Distributors) to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. Additionally, proposed multistate settlements with opioid manufacturers Teva and Allergan and pharmacies Walmart, Walgreens, and CVS (collectively, the Pharmacies) have begun settlement payouts.
It is estimated that California will receive approximately $3.04 billion from each of these settlements through 2038. The City of Menifee opted to participate in the National Opiate Litigation with Janssen, the Distributors, and the Pharmacies as a subrecipient and as such is allocated roughly 0.032% of each distribution payment issued to the participating subdivisions within California. Since the last City Council approval in 2025, the City has received an additional $19,535.16 from the Distributors Settlement, $4,808.75 from the Kroger Settlement, $6,304.87
City of Menifee Staff Report
FY26-27 Opioid Funds
August 19, 2026
3 4
7 1
from the Allergan Settlement, $11,674.96 from the CVS Settlement, $5,741.79 from the TEVA Settlement, $5,771.08 from the Walgreen Settlement, and $737.64 from the Walmart Settlement for a total of $54,574.25. Cities that elected to participate in the National Prescription Opiate Litigation have the option of providing services as a subrecipient or transferring funds to the County or another subrecipient. As a designated subrecipient, the City is required to submit an expenditure plan for the current fiscal year and usage report for the prior fiscal year annually to the State of California by September 30. Staff completed the usage report for the prior fiscal year in early July, following the opening of the State submittal portal. The anticipated expenditure for the upcoming fiscal year will continue with the same percentage distributions as prior years as shown in Table 1 below.
In keeping with the terms of the Settlement Agreement, staff recommends utilizing the Settlement Funds for opioid prevention education and intervention programs reaching vulnerable populations including homeless and at-risk youth residing within the City. Additionally, a small portion of the funding could be dedicated to the City’s Trauma Intervention Program providing emotional care for families when opioid dependent individuals experience medical emergencies as outlined in the attached “List of Opioid Remediation Uses.”
The State of California further requires that at least 50% of all Settlement Funds be allocated to what has been identified as High Impact Abatement Activities (HIAA) outlined in Section 1, Table 1 of “California Opioid Settlements Allowable Expenditures”. In keeping with these requirements, staff proposes concentrating on the use of the Settlement Funds in the following areas:
1. Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by Substance Use Disorder.
2. Intervention to prevent drug addiction in vulnerable youth. Under the proposed plan, Menifee Police Department would utilize existing personnel to provide the identified programming in alignment with the Settlement Fund requirements as outlined in Table 1 below.
TABLE 1- FUNDING ALLOCATION SUMMARY
Allocations Descriptions % of
Funding
School Resource Officer
(SRO) Salary
Direct contact with students to initiate preventive
measures. Note: percentage allocation applies solely
to the portion of the SRO’s salary funded by the City
of Menifee.
Up to 10%
Police Community
Engagement Specialist
Salary
Engage in community outreach activities providing
opioid education and issuing Public Service
Announcements; and collaborate with SRO’s to
provide youth education.
Up to 10%
Homeless Liaison
Officer Salary
Make contact with the homeless population and
provide resources for opioid dependency treatment. Up to 10% Community Behavioral
Assessment Team Salary
Work with at-risk or vulnerable populations in the city to identify those dependent upon opioids and connect
them with needs resources/treatment programs.
Up to 10%
City of Menifee Staff Report
FY26-27 Opioid Funds
August 19, 2026
3 4
7 1
Riverside University Health
Systems (RUHS) Homeless
Housing Opportunities
Partnership and Education
Contract
Contract with RUHS to identify opioid dependency
drug addiction cases in the homeless population and
provide resources and treatment assistance.
5%
Trauma Intervention
Program Contract
Contract dealing with emotional care for family
members after opioid dependent individuals have
medical emergencies.
5%
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
Given that there are multiple Settlements providing varying levels of funding on an annual basis over the 15-year period, staff recommends programming the Settlement Funds as they are received. The fiscal impact associated with the acceptance of the Settlement Funds received through July 23, 2026, would result in an increase of $54,574.25 in other revenue within the Grant Fund (2301-17020-441005) and an appropriation in outreach expenditures to the National Opioid Settlement for Menifee Police Department within the Grant Fund (2301-MPD-17020- 652213). No match by the City would be required.
Payment Type Allocation Amount Status Funding Received* Allergan Year 3 $6,304.87 Paid 8/11/2025
CSV Year 3 $11,674.96 Paid 8/11/2025
Distributor Year 6 $19,535.16 Paid 8/11/2025
Kroger Year 1 $2,464.38 Paid 7/16/2025
Kroger Year 2 $2,344.37 Paid 7/16/2025
TEVA Year 3 $5,741.79 Paid 8/11/2025
Walgreens Year 4 $5,771.08 Paid 1/30/2026
Walmart Year 2 $737.64 Paid 9/29/2025
TOTAL $54,574.25
*Settlement funds must be expended within five years of receipt or transferred to the state.
ATTACHMENTS
1. List of Opioid Remediation Uses
2. Budget Amendment Resolution