New Jersey Announces $130 Million Opioid Funds Amid Backlash Over Hospital Funding Shift

Gov. Phil Murphy (D) announced the allocation of $130.7 million from opioid settlement funds to expand harm reduction centers and support community organizations that serve families affected by substance use, according to a press release on Wednesday.

The largest portion, $118.7 million, will go toward scaling up Harm Reduction Centers over the next five-and-a-half years. These centers, designed to offer supplies and services such as naloxone, sterile syringes, and referrals to health care or housing, have expanded in New Jersey from seven designated sites to 55 since reforms were enacted in 2023. Forty-five locations are currently operating, including mobile and mail-based services, with another 10 approved for future opening.

An additional $12 million is allocated for community nonprofits and businesses that serve families and loved ones affected by substance use. These grants, ranging from $100,000 to $150,000, are aimed at providing support for group counseling, bereavement services, peer networks, and harm reduction activities. The initiative marks the first time New Jersey has directed opioid funds into hyper-local organizations, which officials say are a crucial component of community recovery.

Oversight and Strategic Direction

The move comes after the state clawed back over $45 million of the funds in June. Harm reduction advocates had lambasted the decision to move the money to the state’s largest four hospitals, saying that the decision flouted months of planning by the New Jersey Opioid Recovery and Remediation Advisory Council. The independent council, which comprises service providers and people affected by substance use, had spent over a year developing a strategic plan for fund allocation

The state said that Wednesday’s announcement was informed by the council’s plans, which highlights priority investment in housing, harm reduction, treatment, and wraparound services, and was developed from a 15-month process of public engagement and research.

Settlement Context and Larger Efforts

New Jersey expects to receive a total of more than $1 billion in opioid settlement funds over 18 years, split equally between the state and local governments. Past programs funded by settlement dollars have included expanding peer recovery centers, supported housing, emergency response initiatives, and youth prevention programs.

Public data show some counties have struggled to allocate settlement funding efficiently, with millions reportedly unused in recent years even as overdose rates remain high in several regions. State officials maintain that the new funding aims to address longstanding gaps in treatment and support, and say they will issue ongoing reports to summarize outcomes and spending.

Broader Impact and Remaining Questions

While advocates for people who use drugs have generally welcomed expanded harm reduction services, some public health experts caution that the state’s opioid epidemic remains severe. According to state data, New Jersey recorded over 2,600 suspected drug-related deaths in the past year, and demand for detox, residential treatment, and long-term support still exceeds supply in many communities

As funding is rolled out, stakeholders will monitor whether these investments improve access, reduce overdose deaths, and ease the burden on families navigating the effects of opioid addiction, according to the press release.