$14 million dedicated to Iowa communities’ opioid addiction treatment programs

DES MOINES — A state agency is making $14 million in national settlement money available to Iowa community programs designed to address opioid addiction and treatment.

The Iowa Department of Health and Human Services on Friday announced the $14 million will be spread over two years and available through a competitive application process to communities responding to opioid misuse, with awards of up to $1 million per project.

It is one of the first publicly announced allocations of the millions of dollars available to Iowa through a national settlement against pharmaceutical companies over opioid addiction.

“These funds are a vital step in helping individuals and families recover from the devastating effects of opioid addiction,” new Iowa HHS Director Larry Johnson said in an agency press release. “Our goal is to bring healing and hope to every corner of the state.”

As of May, Iowa had $56 million in national opioid settlement funds that were unused because the settlement required an allocation plan from state lawmakers, who needed three years to reach such an agreement.

Iowa, which was one of 47 states involved in the national lawsuit, is expected to receive roughly $325 million in settlement funds through 2039, according to the Iowa Attorney General’s Office.

When Iowa legislators finally struck an agreement during this year’s legislative session, the plan called for $29 million to fund 10 specific projects suggested by the Iowa Department of Health and Human Services to address immediate needs or to help expand services that are showing results in addressing opioid abuse.

The plan also calls for $27 million to be split between Iowa HHS and the Iowa Attorney General’s Office, with 75 percent of settlement funds going to HHS and 25 percent to the attorney general’s office for crisis response, early intervention, treatment and recovery for opioid addiction.

Both state agencies are required to consult with the state’s seven behavioral health districts on how best to use the funds and analyze local government usage to prevent duplicating programs and services already being offered by local efforts.

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.

The rate of Iowa’s opioid-related deaths was third-lowest among U.S. states in 2023, at 8.4 deaths per 100,000 people, according to the nonprofit health care advocacy and reporting organization KFF. The U.S. average that year was 24, and the highest mark by far was West Virginia’s 71.6 deaths per 100,000.

According to Iowa HHS, community programs seeking funding must focus on one or more of a series of opioid-related goals: addressing community needs, using proven methods to support individuals, working with local service providers, promoting medications and distributing reversal drugs, respecting the privacy and dignity of individuals served, and using data to show results.

“As governor, I’m proud of the work we’re doing to strengthen our behavioral health and recovery networks to expand access to treatment, improve coordination, and remove barriers that keep people from getting the help they need,” Gov. Kim Reynolds said in the HHS press release. “By using Iowa’s opioid settlement funds to expand access to prevention, treatment, and recovery services we’re building a stronger Iowa — one that invests in people, believes in second chances, and never gives up on anyone.”

The funds are for one-time awards, not to become a recurring funding source for programs or facilities. Remaining settlement funds available for use through 2030 will require reauthorization from state lawmakers.

The funds come from national settlements with 10 companies that include opioid manufacturers, distributors and pharmacists. Roughly half the money goes to state government and the other half to local governments. Per the settlement’s terms, at least 85 percent of the funds going to states and local governments must be used to treat and prevent opioid addiction.

Comments: (515) 355-1300, erin.murphy@thegazette.com

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