Full Breakdown
Nassau County's Controversial Transfer of Opioid Settlement Funds
4/3/2026, 5:28:54 AM
Overview of the Situation
Nassau County Executive Bruce Blakeman is facing scrutiny for transferring nearly $14 million in interest from the county's Opioid Litigation Settlement Fund into its general fund. This move has drawn criticism from Nassau Interim Finance Authority (NIFA) Chairman Richard Kessel, who argues that the funds should be used exclusively for opioid treatment, prevention, and education.
Key Figures and Groups
- Bruce Blakeman: Nassau County Executive and Republican gubernatorial nominee.
- Richard Kessel: Chairman of the Nassau Interim Finance Authority, overseeing the county's finances.
- Kathy Hochul: Governor of New York, whose administration has been implicated in the political tensions surrounding the fund transfer.
Details of the Fund Transfer
Since 2024, Nassau County has transferred approximately $13.7 million in interest earned from the opioid settlement funds into its general fund, where the money can be allocated for any purpose. Kessel described this action as "unconscionable," emphasizing that it undermines the intended use of the funds amid an ongoing public health crisis. The funds were part of a larger settlement exceeding $2.6 billion awarded to various states and municipalities following lawsuits against pharmaceutical companies.
Official Statements and Responses
Blakeman's administration has defended the transfer, citing a 16% decrease in opioid-related deaths in Nassau County since last year. Spokesman Chris Boyle stated, "NIFA is supposed to look out for the taxpayer. Instead, they toe the Hochul party line." However, during a budget hearing in August 2024, Nassau's budget director Andrew Persich indicated that the interest was required to remain in the opioid fund, a claim contradicted by the absence of state law mandating such a restriction.
Criticism and Opposition
Critics, including Democratic legislators, have condemned Blakeman's actions as hypocritical, arguing that he cannot claim to support public safety while diverting funds meant for addiction treatment. Delia DeRiggi-Whitton, the Democratic minority leader, stated, "Bruce Blakeman doesn’t get to pretend to be pro-public safety while starving addiction treatment and recovery programs behind the scenes."
Conflicting Reports and Gaps
While Blakeman's office claims the transfer is legal and common practice, Kessel has expressed concerns about its appropriateness, noting that NIFA is investigating whether such transfers have occurred before. The New York State Attorney General's Office confirmed that there are no legal restrictions against transferring interest from the opioid fund, adding to the complexity of the situation.
What's Next
NIFA is considering options to compel Blakeman to restore the diverted funds, including potentially blocking the county's next budget due in September 2026. Meanwhile, legislation introduced by county legislator Olena Nicks aims to prevent future transfers of interest from the opioid settlement fund.
Verbatim Quotes
- "While sitting on the settlement funds in the face of this public health crisis is bad enough, it is unconscionable for your administration to transfer the interest in a backroom manner to prop up the county’s budget." — Richard Kessel, Chairman of NIFA
- "Shame on them." — Chris Boyle, Spokesman for Bruce Blakeman
- "We will not stop until every dollar is restored and finally used for its intended purpose: saving lives." — Delia DeRiggi-Whitton, Democratic Minority Leader
