New York Proposes Alcohol and Opioid Taxes to Fund Addiction Treatment

State lawmakers aim to create a dedicated fund for substance use disorder services as federal funding becomes uncertain and alcohol access expands.

Published on Feb. 6, 2026

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New York state Sen. Nathalia Fernandez has introduced three bills that would establish a 5% tax on alcohol sales and redirect existing opioid tax revenue into a dedicated fund for substance use treatment, prevention and recovery services. The legislation comes as the state has recently expanded access to alcohol through measures like allowing to-go cocktails and permanent alcohol sales in movie theaters, raising concerns that increased availability will lead to more people needing addiction treatment. With federal funding for behavioral health services becoming increasingly unstable, state officials are seeking new revenue sources to ensure stability for treatment providers.

Why it matters

New York is simultaneously making it easier for residents to access alcohol while also grappling with the public health impacts of substance use disorders. This legislation aims to create a dedicated funding stream for addiction treatment services to address the potential rise in need as alcohol access expands, offsetting the burden on the state's general fund and providing more stability for treatment providers amid federal funding uncertainty.

The details

The three bills introduced by Sen. Fernandez would establish a 5% excise tax on retail alcohol sales, redirect existing opioid tax revenue into a dedicated Drug Treatment and Public Education Fund, and expand what that fund can be used for, including harm reduction programs, recovery services, and problem gambling treatment. The goal is to create the 'SUPER Initiative' - Substance Use Prevention, Education and Recovery - to address the state's substance use challenges.

  • The bills were introduced in the New York state legislature in February 2026.
  • The state budget, which the bills aim to be included in, is due by April 1, 2026, though it is often late.

The players

Nathalia Fernandez

A New York state senator who introduced the three bills to tax alcohol sales and redirect opioid tax revenue to fund addiction treatment services.

Dana Levenberg

A New York state assemblywoman who is sponsoring the bills in the Assembly.

Robert Kent

A former counsel at the state's addiction services agency who now runs a consulting firm, and who said the proposed approach makes sense given the scale of need and instability of other funding sources.

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What they’re saying

“The federal government has attempted to cut and thankfully, court involvement has put it back, but it's been such a limbo back and forth that this would again create stability that we need in this area of our budget.”

— Nathalia Fernandez, New York state senator (Times Union)

“With federal funding becoming less reliable, we need new, stable sources of revenue.”

— Dana Levenberg, New York state assemblywoman (Times Union)

“When you just put the money into the general fund and spend it however, and you don't dedicate enough resources, too many people suffer the consequences. Too many people die. Too many people can't access treatment.”

— Robert Kent, Former counsel at the state's addiction services agency (Times Union)

What’s next

The bills introduced by Sen. Fernandez aim to be included in the final New York state budget, which is due by April 1, 2026, though it is often late.

The takeaway

New York is grappling with the dual challenges of expanding access to alcohol while also needing to fund addiction treatment services, especially as federal funding for behavioral health becomes less reliable. This legislation seeks to create a dedicated revenue stream to address substance use disorders and ensure stability for treatment providers in the state.