The North Carolina Memorandum of Agreement (NC MOA) provides that funds from the Wave One Settlements and bankruptcy resolutions are allocated as follows:
- 15 percent to the state
- 85 percent to local governments
The Supplemental Agreement for Additional Funds (SAAF) and Second Supplemental Agreement for Additional Funds (SAAF-2) provide that funds from the Wave Two Settlements and Kroger Settlement are allocated as follows:
- 15 percent to the state
- 84.62 percent to local governments
- 0.38 percent to a “Local Counsel Fee Fund” to compensate private attorneys based in North Carolina that have represented local governments in opioid litigation
The North Carolina General Assembly decides how to spend the 15 percent state share of opioid settlement proceeds, subject to the general requirement in the national settlements and NC MOA that opioid settlement funds be spent to address the opioid overdose epidemic. More information about state spending.
Local governments entitled to receive direct payments under the settlements are the 100 North Carolina counties plus 17 municipalities that either filed suit against the defendants, or had a population of 75,000 or more in 2019, or both. Five municipalities entitled to receive funds – Cary, Charlotte, Concord, Gastonia, and Raleigh – have directed their opioid settlement funds to their respective counties.
The allocation of opioid settlement funds among local governments is derived from the allocation model developed at the national level by the outside counsel for local governments. For a schedule of estimated payments to local governments receiving opioid settlement funds, visit the NC Payment Schedule.
To learn more, read the FAQ on the NC MOA, the full text of the NC MOA, the full text of the Supplemental Agreement for Additional Funds (SAAF), and the full text of the Second Supplemental Agreement for Additional Funds (SAAF-2).