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Lexington Directs $3 Million in Opioid Settlement Funds to 24 Local Recovery Programs

Lexington's Department of Social Services has recommended 24 organizations to receive a combined $3,029,681 through the city's first Opioid Abatement Community-Based Initiative Grants. The awards, drawn from national opioid settlement funds, will support prevention, treatment and recovery services across Fayette County, with final approval expected at the Lexington Council's Oct. 27 work session.

How the funding is structured

The grants are split into two tiers. Thirteen "Macro Grants" will run for two years, covering fiscal years 2027 through 2029, and are directed toward larger organizations with broader service reach. Eleven "Micro Grants" will run for one year, covering fiscal 2027 through 2028, and generally support smaller or more targeted programs. Recipients include legal aid services, mobile outreach teams, youth mentoring programs, maternal health providers and recovery housing operators.

Where the money originates

The funds come from national settlements with opioid manufacturers and distributors, following lawsuits over their role in the opioid crisis. Kentucky has received more than $900 million from these settlements since 2022, money that state and local governments are now distributing to community programs. Sean Schomp, Director of Operations at Shepherd's House, a long-term recovery community in Lexington, described the funds as money tied directly to the harm caused by opioid manufacturing and distribution. "OxyContin just devastated not just families, it devastated towns, it devastated cities," Schomp said. "So, to be able to pour this back into recovery resources of any kind is exactly where this money should go."

What recipients plan to do with the funds

Shepherd's House, which began drafting its grant application late last year, will use its award to provide rental assistance for people living in recovery housing. Schomp said reducing financial pressure during early recovery can make a meaningful difference. "It will allow them to work, to get up off their feet, and not have to have all the pressures," he said. "There's so much pressure on clients as they get sober, so anywhere we can relieve pressure for them, it's going to make their journey that much more successful."

Other recipients will focus on different stages of the crisis response. Voices of Hope plans to expand mobile recovery support across Fayette County, while Legal Aid of the Bluegrass will provide civil legal services to stabilize housing and employment for affected families. Several youth-focused organizations, including the Girl Scouts of Kentucky's Wilderness Road and Junior Achievement of the Bluegrass, will introduce prevention programming aimed at building resilience in children exposed to substance use in their families.

Next steps and limits of the program

The grant recommendations still require formal Council review and a vote before funds are released, meaning the list of recipients could change. This round represents the city's first use of opioid settlement dollars for community-based initiatives, and it is not yet clear how future funding cycles will be structured or whether all programs will be renewed beyond their initial grant terms.