The New Mexico Office of the State Auditor concluded in a new report that a large share of counties and municipalities receiving opioid settlement payments had not reported any spending through June 30, 2025, raising concerns about whether communities are using the money intended to address a long-running overdose crisis.
Audit gauges early use of settlement funds
New Mexico began receiving payments in 2023 from nationwide opioid litigation that will total more than $920 million for the state. Of that, more than $344 million has been earmarked for local governments. The auditor's Government Accountability Office examined the first three years of distributions and found limited local spending.
The report found that, as of June 30, 2025, 15 of 33 counties and seven of 12 municipalities that received opioid settlement funds had reported zero expenditures during the period reviewed. Collectively, the counties and municipalities reported spending roughly $15 million of the approximately $110 million they received in that three-year window.
“This report, I think, should be construed as a wake-up call to not just the state of New Mexico, but to these recipients, particularly the ones that have really not done a good job in spending their funds,”
State Auditor Joseph Maestas said the findings should alarm New Mexicans concerned about the opioid crisis and indicate a need for greater state involvement to help local governments deploy the funds.
Where the money — and the inaction — is
The audit found counties and municipalities reporting zero expenditures were predominantly rural. Among locales that reported minimal spending, four entities had spent less than $1,100, including Harding, Otero and Roosevelt counties and the City of Santa Fe. Santa Fe’s communications director told the auditor’s office the city was in the process of documenting expenditures.
- Total state settlement funds: $920 million (projected)
- Local government portion: $344 million+
- Amount reported spent by local governments through June 30, 2025: $15 million
- Counties with zero reported spending: 15 of 33
- Municipalities with zero reported spending: 7 of 12
| Metric | Figure |
|---|---|
| Statewide settlement total | $920 million+ |
| Local portion | $344 million+ |
| Local spending reported (through 6/30/25) | $15 million |
| Counties with no reported spending | 15 of 33 |
Why it matters
New Mexico has endured one of the nation’s highest overdose death rates for much of the last two decades. Settlement dollars are intended to support prevention, treatment, recovery and other community-based responses. Delays or failures to deploy the funds may slow efforts to expand treatment access, enhance harm-reduction services or support families affected by addiction.
The auditor’s findings also highlight capacity gaps among smaller, rural governments that may lack staff, grant expertise or clarity on allowable uses. The report recommends increased state-level assistance to help local entities plan, approve and document projects so funds can reach communities more quickly.
For residents and local leaders, the audit frames a practical question: how to convert settlement dollars into programs that reduce overdoses and support recovery. The state auditor’s office is urging recipients to accelerate spending and improve reporting so the money fulfills its public-health purpose.
News Block will continue to track how counties and towns respond to the audit and whether the state steps up technical support or oversight to move funds into service delivery.
