Blakeman administration reverses transfer of nearly $14M in interest from opioid settlement funds

Nassau County Executive Bruce Blakeman's office has reversed his administration's transfer of nearly $14 million in interest accrued from unused opioid settlement funds into a fund that would have allowed those dollars, targeted for drug abuse prevention, treatment and education, to be used for any purpose, records show.

Data from Nassau's internal finance system, provided by county Democrats, shows $13.69 million in interest had been transferred since 2024 from the county's Opioid Litigation Fund into its general fund was reversed in recent days as part of an end-of-the-year reconciliation of the county’s finances for fiscal 2025. Newsday first reported about the interest transfer in March.

The policy reversal came after Democratic lawmakers and the parents of individuals who died following drug overdoses complained the transfer was inappropriate and should be reversed.

Legis. Olena Nicks (D-Uniondale), who has sponsored a bill mandating any interest or investment income earned on opioid settlement money remain parked in the settlement fund, said if Blakeman did not return the money, Democrats were prepared to vote against any legislation to close the financial books on 2025.

"We'll take a victory where we can," Nicks said Tuesday. "However, there is still so much work that needs to be done. Our residents can still benefit from the money that we do have that has not been used. We're going to continue to push the administration to make sure that funding reaches programs on the ground, and that we're helping the residents who are most in need."

In a statement, Blakeman, a two-term county executive who is the expected GOP gubernatorial candidate in November, said "opioid deaths and overdoses are down in Nassau County and we will continue to invest in education prevention and enforcement in order to make sure that our community is safe and healthy.”

At a legislative meeting in Mineola on Monday, Finance Director Andy Persich confirmed the money had been returned to the Opioid Litigation Fund.

"That money is being put back," Persich told county lawmakers. " ... Those monies will be returned."

The opioid funds were part of the more than $2.6 billion that entities statewide have received after 2021 settlements in a lawsuit over the opioid epidemic that 46 states and municipalities brought against pharmaceutical distributors. In 2022, settlements also were announced with three pharmacy chains and two additional drug manufacturers.

Nassau received $95.5 million in settlement funds, while Suffolk was awarded $120.9 million, records show.

Larry Lamendola, of Wantagh, whose daughter Lisa died of a fentanyl overdose in 2019, was a vocal critic of the interest transfer.

"The bottom line is that this money going back into the opioid settlement fund is going to help others," said Lamendola, co-chair of the Levittown Community Action Coalition. "This wasn't political. Not in the least bit. This is about humanity."

Richard Kessel, head of the Nassau Interim Finance Authority, a state oversight board in control of the county's finances, previously described the interest transfer as "unconscionable." On Tuesday, Kessel said he was grateful the administration "came to its senses. But what's important is that the money can now be used for what it is intended for — and that is to treat opioid addiction."

State Attorney General Letitia James' Office has confirmed there are no legal restrictions prohibiting Nassau from transferring the interest from its opioid fund while County Comptroller Elaine Phillips, a Republican, previously said the "use of interest earned from deposited opioid settlement funds is perfectly valid and legal."

A spokeswoman for the Republican legislative majority did not respond to requests for comment.

A December 2024 Newsday investigation found only a fraction of funds from both Nassau and Suffolk had been distributed, although both counties have since increased their respective paces of spending.

Newsday's Bahar Ostadan contributed to this story.

By Robert Brodsky

robert.brodsky@newsday.com@BrodskyRobert

Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.