New York City is putting $12 million from opioid lawsuit settlements into peer-led addiction recovery and harm reduction programs across the five boroughs. Mayor Zohran Mamdani announced the investment on May 6 at the Brooklyn branch of Phoenix House, one of the leading nonprofits providing treatment and rehabilitation services for substance use disorder.
Here’s what to know:
What is the city funding?
The money will go to seven nonprofits that provide addiction services:
- Phoenix House
- Fortune Society
- Samaritan Daytop Village
- Odyssey House
- Exponents
- Community Health Action of Staten Island
- The Pillars
The city says the funding will expand peer counseling, street outreach, harm reduction, recovery coaching and workforce development programs.
What are peer recovery programs?
The city plans to support 500 additional peer workers over the next four years through internships, scholarships and hiring programs, Dr. Alister Martin, commissioner of the city’s Department of Health and Mental Hygiene, announced at the press conference.
In peer recovery programs, people with lived experience in addiction and recovery help others navigate treatment, housing, healthcare and relapse prevention.
That model mirrors programs already operating across the city. Organizations like Association of Community Employment Programs, or ACE, have long combined street-cleaning and beautification work with workforce development and recovery support for New Yorkers with histories of homelessness, incarceration and addiction. ACE participants often train alongside peer counselors and recovery coaches while earning certifications and job experience.
Officials and advocates say peers can often build trust faster than traditional providers because they understand recovery firsthand. Advocates say those peer relationships can be lifesaving, especially during periods of isolation. Ed Manchess, who directs a Bronx harm reduction center run by BOOM!Health, previously told Epicenter NYC that holidays and loneliness often intensify overdose risks.
NYC Health + Hospitals’ Peer Academy recruits and trains adults who have a high school diploma or GED/TASC and experience navigating mental health or substance use issues to become state-certified peer counselors. It’s one of the largest employers of peer counselors in the city. After the free 18-week program, graduates can then support behavioral health patients in hospitals and other healthcare settings. The next application window for the fall 2026 cohort will open on June 15. Anyone interested can sign up for alerts here.
Why now?
The city says overdose deaths are finally declining after years of increases tied to fentanyl and the opioid epidemic. According to City Hall:
- Overdose deaths dropped 28% citywide in 2024, from 3,046 deaths in 2023 to 2,192 in 2024.
- That translates to 864 fewer deaths.
- Preliminary 2025 data suggests the decline may have continued.
“This momentum is too valuable to squander,” Mamdani said at the Phoenix House event.
How does this connect to harm reduction?
At the news conference, city leaders repeatedly framed addiction as a public health issue, not simply a policing issue. Decades of incarceration-focused drug policy worsened overdose risks and instability for many communities, Council Member Tiffany Cabán said at the event.
Harm reduction groups across the city have pushed for approaches that “meet people where they are,” including:
- Distribution of naloxone, a drug that can rapidly reverse an overdose
- Syringe services
- Overdose prevention centers
- Peer counseling
- Housing and reentry support
Advocates say stigma and isolation remain major drivers of fatal overdoses, particularly among older adults using drugs alone at home.
What’s next?
The city says the investment is part of a broader goal to reduce overdose deaths by 25% over the next four years. Phoenix House also announced plans to launch a mobile outreach van to bring recovery services directly into Brooklyn neighborhoods.
For Phoenix House peer recovery coach Shabazz Wilson,, the investment reflects both a more personal and broader shift in how New York approaches addiction recovery. “I’m able to be an example for people I work with because I’ve been through this myself,” Wilson said at the Phoenix House event. “What we’re doing here at the Center should be used as a blueprint across the city.”
