Title
Consider/Discuss/Act on a Resolution Approving the Distribution of the Remaining Opioid Settlement Funding for FY 26 to Grace to Change
Summary
COUNCIL GOAL: To Improve Quality of Life in McKinney
MEETING DATE: December 16, 2025
DEPARTMENT: Housing and Community Development
CONTACT: Shirletta Best, Community Services Administrator
Margaret Li, Housing & Community Services Director
RECOMMENDED CITY COUNCIL ACTION:
• Approve the Resolution to award the balance of funding ($53,785) to Grace to Change.
ITEM SUMMARY:
• Distribute the balance of funds of $53,785 to nonprofit agency, Grace to Change.
BACKGROUND INFORMATION:
• The State of Texas, along with a coalition of states and subdivisions (cities and counties), reached final agreements with pharmaceutical and manufacturing companies (including Teva, Allergen, CVS, Walmart, and Walgreens) to resolve “legal claims against them for their role in the opioid crisis,” The State of Texas received about $1.6 billion in the settlements. A bill passed by the Texas Legislature in 2021 created the Texas Opioid Abatement Trust Fund that allowed for funds to be allocated to cities and counties. To date, McKinney distributed $141,000 from the Trust Fund. The funding focus is toward the treatment of opioid use and disorders and any co-occurring substance use disorders.
• On April 1, 2025, the City received a total of $134,185 for the 2025 distribution from the Opioid Abatement Settlement Fund. Political subdivisions may use their discretion to spend their allocated share of the funds, as long as the funds are used to address opioid-related harms in their communities and abide by state and federal laws. Reference to Texas Government Code 403.506(c)(1).
• On October 6, 2025, the City Council amended the city’s FY 2025-2026 Annual Budget to appropriate the $134,185 in funding as follows:
o $ 80,400 to McKinney Public Safety (Fire & Police Departments)
o $ 53,785 to the Housing & Community Development, under the FY26 Opioid Settlement Application process, whereby the Community Grants Advisory Commission will conduct public hearings for use of funds by eligible non-profit organizations.
• Three agencies considered applying for funding. One application was received.
• The Community Grants Advisory Commission (CGAC) held a public hearing on December 3, 2025 and deliberated on funding. The CGAC recommended that the City Council adopt a resolution authorizing the award of remaining Opioid settlement funds to Grace to Change.
FINANCIAL SUMMARY:
• Funds are budgeted the Grants Fund under project number GR2514.