Mamdani invests $12M from AG opioid settlement into community-based addiction recovery
As published in the amNY, May 7, 2026
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Mamdani invests $12M from AG opioid settlement into community-based addiction recovery
By Isabella Gallo, amNY
Seven community organizations across the five boroughs offering addiction recovery services will receive $12 million to fund rehab programs led by people who have dealt with substance abuse firsthand, Mayor Zohran Mamdani announced Thursday.
The money comes from a $7.4 billion settlement secured by Attorney General Letitia James earlier this year in a suit against opioid manufacturers Purdue Pharma and the Sackler family, which Mamdani blamed for fueling the addiction crisis in New York City.
“There are times when corporate greed is subtle, where the ripple effects of an all-consuming profit motive are not immediately apparent,” Mamdani said while announcing the investment on May 7 at Phoenix House, one of the seven organizations receiving funds. “That is not the case with the opioid epidemic. There is no denying the staggering human cost of big pharma’s greed or the toll it has taken on our city.”
Officials touted Mamdani’s investment of the funds directly into community organizations as a clear example of what the city looks like under democratic socialism.
“This is our city under democratic socialism, and it’s working,” said Brooklyn Council Member Chi Ossé, who represents the district Phoenix House falls in. “We have communities that have been waiting decades for their government to show up, and today we are showing right here in Brooklyn with $12 million going right back into our communities.”
Investing in programs that connect those struggling with addiction with both medical services and support from peers who have gone through the recovery process has been shown to be one of the most effective paths to helping people out of addiction, Mamdani said.
“Peer specialists offer something no other provider can provide: the credibility of a shared experience and evidence that recovery is possible,” Mamdani said. “They provide New Yorkers in the midst of recovery with the structure, the stability and the purpose that helps them maintain their progress.”
Pillars, Fortune Society, Samaritan Daytop Village, Odyssey House, Exponents, and Community Health Action of Staten Island are the other groups receiving funds alongside Phoenix House.
Overdose deaths from opioids and other drugs have begun decreasing in New York City over the past few years, but remain a point of pain in the city. In 2022, it was estimated that one New Yorker died from an overdose every three hours.
However, in 2024, overdose deaths across the five boroughs dropped by 29%, which translates to 864 fewer New Yorkers dying a year, the first substantial decrease in nearly a decade. Provisional data indicates the downward trend has continued through 2025, Mamdani said, and pointed to the rise of peer-led programs as a reason for the decrease.
“This momentum is too valuable to squander,” the mayor said. “So, as we look to the future, we are building on what we know works, what we know saves lives.”
Queens Council Member Tiffany Cabán, who chairs the City Council’s mental health and substance use committee, said Thursday she thought the mayor’s decision to allocate funds to harm reduction and community-led programs was the right one in the city’s efforts to support.
“Substance abuse is a symptom of when our society comes up short for people, and … when our government comes up short for people, yet for decades, this country has dealt with it through policing and punishment with devastating consequences for our communities,” Cabán said. “This historic investment can be part of the path to ensuring that not one more person dies of an avoidable death from substance use.”
