More than three years after the first opioid settlement payments began flowing to New Mexico communities, a state audit released Wednesday shows a large share of local governments have not tapped those funds to address the state’s overdose crisis.
Audit shows slow local spending
The New Mexico Office of State Auditor’s Government Accountability Office reviewed the first three years of distributions and found that by June 30, 2025 nearly half of the counties and a majority of some municipalities that received money reported no expenditures.
Across the period examined, local governments received roughly $110 million of the broader settlement payments; they reported spending just $15 million of that total. Of the 33 counties that received funds, 15 reported zero spending. Seven of 12 municipalities that received payments also reported no expenditures. The jurisdictions reporting no spending were largely rural.
“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,”
— New Mexico State Auditor Joseph Maestas, speaking to Source NM.
Where the money fits in
The overall settlement stream to New Mexico is expected to total more than $920 million, with more than $344 million earmarked specifically for local governments. The auditor’s office focused on what local governments did with the initial installments over the three-year review window.
| Figure | Amount |
|---|---|
| Total expected settlement | $920 million |
| Designated for local governments | $344 million |
| Local receipts examined | $110 million |
| Local expenditures reported | $15 million |
Local responses and next steps
State officials said the findings point to a need for greater state involvement to help counties and cities plan and deploy programs funded by the settlements. The audit singled out several jurisdictions that had reported minimal spending; among them were Harding, Otero and Roosevelt counties and the City of Santa Fe. The Santa Fe communications director told reporters the city’s reported expenditure — just $605 — reflects a deliberate strategy for how it intends to invest its funds.
- Counties and municipalities must report how settlement funds are used to address addiction and related harms.
- State oversight and technical support may be needed to help rural governments design programs and draw down funds.
- Residents and advocacy groups are likely to press for transparency and quicker deployment to prevention, treatment and recovery services.
For New Mexico — which has endured one of the nation’s highest overdose death rates over much of the past two decades — the slow pace of local spending represents a delayed opportunity to expand prevention, treatment and recovery services where they are needed. The auditor’s findings set up a potential policy debate over whether the state should take a more active role in guiding or conditioning how those local dollars are spent.
State officials and affected local governments have time to respond: the audit’s release renews pressure for jurisdictions to provide spending plans, increase transparency and accelerate the use of funds to address ongoing harm from opioids.
