Governor Kathy Hochul has signed into law Senator Nathalia Fernandez’s bill (S.6757), now Chapter 425 of 2025, ensuring that every dollar from New York’s opioid settlements is directed into the state’s Opioid Settlement Fund as intended.
The law closes a technical loophole in the Mental Hygiene Law that left portions of recent and future settlements at risk of being diverted to the state’s general fund, rather than invested in treatment, prevention, and recovery programs. Without this clarification, up to $250 million from the Purdue Pharma/Sackler family settlement would have been excluded from the Opioid Settlement Fund and defaulted to the general fund. This legislation prevents that diversion and ensures this settlement as well as future settlements are equally protected.
“This legislation ensures that every cent recovered from those who profited off the suffering of New Yorkers goes directly toward healing our communities,” said Senator Nathalia Fernandez, Chair of the Alcoholism and Substance Use Disorders Committee. “By closing this loophole, we are guaranteeing accountability and making sure these hard-fought dollars are used to prevent overdose, expand treatment, and support recovery efforts across the state.”
Assemblymember Michaelle Solages said, “For too long, the opioid crisis has torn apart families and left communities struggling to recover. With this bill now signed into law, we can ensure that settlement dollars are directed where they belong: treatment, prevention, and recovery. This law delivers the clarity and accountability needed to get resources into the hands of providers and communities on the front lines of this epidemic. I am deeply grateful to Senator Fernandez, Governor Kathy Hochul, Attorney General Letitia James and my legislative colleagues for their leadership and commitment to making this possible.”
New York State Attorney General Letitia James has already secured more than $3 billion in settlements from manufacturers, distributors, and others responsible for fueling the opioid crisis.
Under S.6757/A.8459, the law amends Mental Hygiene Law §25.18 to:
- Explicitly include all parties in the prescription drug marketing, supply, and payment chain in the definition of “statewide opioid settlement agreements.”
- Extinguish, by operation of law, any claims by government entities against a released party after the effective date of the settlement agreement.
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