At least 25 towns in New Jersey have reportedly misused millions from the opioid settlement funds, opting for extravagant purchases like an electric Mustang, custom jackets, and concerts, rather than supporting essential addiction services.
New Jersey, which has seen an estimated 30,000 opioid-related deaths and 150,000 addictions over the last decade, reached a significant settlement in 2021 with major pharmaceutical companies, including Purdue Pharma, Johnson & Johnson, and CVS. Originally, this settlement was seen as a way to provide restitution and help combat the opioid crisis, as reported by NJ.com.
However, the $1.1 billion settlement, intended to be allocated through 2040 and with half already distributed to local governments since 2022, has been mostly spent on non-essential items rather than improving addiction services, according to an investigation by the outlet. Experts, advocates, and some state officials have expressed concern over this misuse.
“This is blood money,” commented John Armato, a former New Jersey assemblyman, who lost his son Derek to an overdose in 2020. “Hundreds of thousands of people are dying because of this,” Armato, 78, told the publication.
One of the most notable expenditures was Atlantic City’s purchase of a $73,000 custom-wrapped Mustang Mach-E for its police department. Additionally, Irvington spent $600,000 on two awareness concerts, and Camden allocated nearly $150,000 to a non-profit to identify broken street lamps.
Atlantic City, having received over $2.3 million from the settlement, has spent lavishly on 30 monogrammed jackets and approximately $140,000 on clothing, backpacks, consulting services, and a city homeless workforce program.
Irvington reportedly spent more than $600,000 on two opioid awareness concerts in 2023 and 2024. A July 2025 state comptroller’s report criticized the spending, noting that promotional materials did not include information on treatment or prevention of opioid abuse.
New Jersey towns have reportedly spent about $2.3 million from the opioid settlement by taking advantage of unclear settlement language, violating the 2021 national agreement, a 2022 state attorney general’s memorandum, and the 2023 state Opioid Law, according to NJ.com.
Camden spent $148,000 to document broken streetlights, claiming it would curb drug activities. Manchester Township invested $57,000 in a new car for a school resource officer to address drug issues, and Lindenwold planned to construct a trailer for children to play video games.
Sandy Gibson, an addiction researcher at The College of New Jersey, criticized the spending, stating, “I’m trying to think of words that I would be willing to say in a newspaper, and I can’t think of ones that are safe to use.” She added that the lack of oversight is a significant issue.
While some municipalities have been criticized for excessive spending, others face scrutiny for leaving funds unused. More than $53 million remains unspent in municipal accounts for up to three years, NJ.com reported.
By June 2025, Summit had nearly $1 million in its account but had yet to spend any. Mayor Elizabeth Fagan explained that the city was ensuring proper management of the funds to comply with laws and standards. A strategic plan is being developed with local nonprofits to determine fund allocation.
“They’re not doing what’s intended. It’s just sitting there unspent,” Gibson noted. “Your inaction tells us that is not a priority to you.”
Similarly, Aberdeen Township reported no spending, despite receiving nearly $130,000 in funds since 2022. Gibson expressed frustration over the lack of accountability, asking, “Is there no accountability built into this process?”
State Assemblyman Cody Miller (D-Gloucester) plans to introduce legislation to regulate the use of opioid funds, emphasizing the need for tighter oversight and transparency.
“When (Armato) initially told me what these funds were being spent on, I was pissed off,” Miller said. “There’s so much ambiguity with the settlement information … that it’s open to interpretation.”
Miller, whose siblings have faced addiction challenges, believes there are lessons to be learned from this situation. He hopes the experience will ensure funds are used appropriately and for their intended purpose.
