Iowa to receive $37.8M in opioid settlement funds after signing agreement with Purdue Pharma

Iowa will receive $37.8 million in opioid settlement funds after the state signed onto a settlement agreement with OxyContin maker Purdue Pharma and its owners, the Sackler Family, on Monday, resolving thousands of opioid lawsuits nationwide.

Forty-nine states, five U.S. territories and the District of Columbia approved a $7.4 billion settlement with the company after accusing it of manufacturing and marketing the drug that fueled the country’s opioid crisis.

"OxyContin is an extremely harmful and addictive drug; lives have been lost and families forever changed because of its devastating effects,” Iowa Attorney General Brenna Bird said in a statement Wednesday. “Although a bittersweet victory, the nearly $38 million in settlement funds will continue Iowa’s fight against opioid addiction as we work to end the cycle of addiction and aid in recovery.”

Under the agreement, Iowa’s Opioid Settlement Fund will receive up to $18.9 million over the next 15 years and an additional $18.9 million will be divided among local governments. The funds will be distributed primarily in the first three years.

In May, Iowa state lawmakers agreed on a spending plan to distribute $56 million in existing opioid settlement funds after three years of failing to advance legislation. The funds will be split between the Iowa Department of Health and Human Services and the state Attorney General's Office to put toward opioid addiction treatment, prevention and recovery.

Iowa is expected to receive roughly $325 million through 2039, according to the Iowa Attorney General’s Office.

Opioids claimed the lives of 238 Iowans in 2023, according to state figures. Iowa’s annual opioid-related death rate peaked at 258 in 2021.

Gazette Deputy Des Moines Bureau Chief Tom Barton contributed to this report.