City hopes to use funds from opioid settlement for prevention, treatment, and public safety initiatives
“In our region, fentanyl alone has killed hundreds of our neighbors and harmed thousands of families,” said Councilmember Christy Holstege, who assisted in the city’s participation in a settlement agreement.

City leaders last week took another step toward combating a crisis impacting communities across the nation, providing direction to staff on how to use money from an historic settlement.
According to a staff report prepared for the Feb. 8 Palm Springs City Council meeting, the city will receive $2.9 million over the next 19 years. It comes from the state and stems from a national settlement with opioid manufacturers and distributors totalling tens of billions of dollars. After an initial $215,000, the city will receive $150,000 annually for 18 years.
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The money will be used locally to address the opioid and fentanyl crisis in the region. Specifically, it will go toward prevention, treatment, and recovery programs for people affected by opioid addiction and overdoses, as well as to enhance public safety and education efforts.
“Responding to an overdose is one of the most devastating things a firefighter can approach,” Fire Chief Paul Alvarado said during the Feb. 8 meeting, noting that his department responded to 275 calls for overdoses in 2023, 101 of which required the provision of Narcan, a medication that reverses the effects of opioids.
In addition, the Desert AIDS Project, a local nonprofit organization, reported that it saved 556 lives through the access to Narcan and served 4,000 clients through its harm reduction program in 2023.
City Councilmember Christy Holstege, who helped spearhead the city’s participation in the settlement agreement, praised the achievement during the Council meeting, noting that it was an example of of local government delivering real results for the community.
“In our region, fentanyl alone has killed hundreds of our neighbors and harmed thousands of families,” Holstege said. “In the first half of 2023, there were more fentanyl-related deaths in the Coachella Valley than in any other part of Riverside County.
“We continue to hear stories from families of victims, from firefighters and police officers, from teachers and parents, from our business community and residents – all on the front lines of experiencing the impacts of this issue in Palm Springs.”
The settlement agreement was reached in 2022 by California Attorney General Rob Bonta on behalf of California with four major opioid companies: Johnson & Johnson, Cardinal Health, McKesson, and AmerisourceBergen. The agreement resolved claims that the companies engaged in deceptive marketing and failed to prevent the diversion of opioids, contributing to the nationwide epidemic.
Palm Springs is one of the first cities in the state to receive the settlement funds. Holstege said the city will work with its partners and stakeholders to ensure the funds are used effectively and transparently to combat the opioid crisis and save lives, concluding, “This is a crisis that demands immediate and concerted action.”
