Who Funds the Police? Fiscal Determinants of Opioid Settlement Spending on Law Enforcement

Objectives: To examine the proportion and amount of opioid settlement funds allocated to law enforcement activities, including remediation-aligned activities (ie, that directly address the harms associated with opioid use) and nonremediation uses, and to assess whether local fiscal characteristics related to policing are associated with allocation decisions. Methods: We constructed a longitudinal data set linking detailed, mandated reports of Indiana local government settlement expenditures (2023–2025) with administrative data on local revenue sources, expenditures, and demographic characteristics. Outcomes included the percentage of settlement funds allocated to (1) any law enforcement activities, (2) remediation-aligned law enforcement activities, and (3) nonremediation law enforcement activities. Regression models estimated associations between reliance on fines, fees, and forfeitures, and policing expenditures per capita and settlement spending patterns. Results: Across years, local governments allocated a mean of 9.81% (SD: 16.14%) of settlement funds [$3916.86 (SD: $27,922.8000)] to law enforcement. This included $3222.83 (SD: $23,120.37) for remediation-aligned activities and $8703.75 (SD: $41728.45) for nonremediation. Greater reliance on fines, fees, and forfeitures was associated with higher allocation to law enforcement overall (AOR: 1.11; 95% CI: 1.05–1.18) and to nonremediation activities (AOR: 1.15; 95% CI: 1.08–1.22). Higher policing expenditures per capita were also associated with greater allocation to nonremediation activities (AOR: 1.85; 95% CI: 1.06–3.24). Conclusions: Jurisdictions that rely more heavily on law enforcement–generated revenue and spend more on policing had higher odds of directing settlement resources toward strategies not aligned with opioid remediation. Future research evaluating settlement effectiveness should account for these local fiscal incentives.