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Senate panel kickstarts debate on spending opioid settlement money
(Des Moines, Iowa) – A Senate subcommittee moved forward a bill Monday allocating $42 million from the Opioid Settlement Fund to the Iowa Department of Health and Human Services to combat the impacts of the opioid crisis. According to the Iowa Capital Dispatch, Senate Study Bill 1226 would provide a $12 million grant for Community and Family Resources, an addiction recovery and treatment center in Fort Dodge and $30 million to Iowa HHS for efforts to “abate the opioid crisis in the state,” taking into account recommendations from the seven district behavioral health advisory councils throughout the state.
Moving forward, the bill states 75% of unobligated money from the settlement fund will go to HHS and 25% will go to the Attorney General’s office, to be disbursed “in accordance with the requirements of the master settlement agreements.” Each year, the two entities will have to submit their recommendations on appropriating the funds for the next fiscal year to lawmakers as a bill, again with consideration for regional behavioral health advisory council recommendations. Sen. Tim Kraayenbrink, R-Fort Dodge, said this bill will not necessarily be the final version of the legislation, but that he wanted to get the conversation started early to ensure that opioid settlement funding is distributed.
There is currently more than $56 million in Iowa’s Opioid Settlement Fund, received as settlement in lawsuits brought by states against opioid manufacturers, distributors and pharmacies for their roles in the opioid epidemic. Iowa will receive more than $325 million from these settlements between fiscal years 2021 through 2039, according to the AG’s office. The funds are split, with half going to local governments and half to the state — with both levels of government obligated to use at least 85% of the funds received for opioid addiction treatment and prevention services. Lawmakers set up the Opioid Settlement Fund in 2022 to collect and distribute this money given to the state. However, the Legislature has not dispersed any of the fund’s money in the past two sessions — disagreements between the House and Senate on how to allocate these funds were not resolved before the session ended in 2024.
The House had moved in 2024 to designate money to go to specific nonprofits — $3 million to Youth and Shelter Services and $8 million to Community and Family Resources. In the Senate proposal this year, $12 million was allocated for Community and Family Resources. Executive Director Michelle De La Riva told lawmakers at the subcommittee meeting the funding would go toward a new campus providing resources like a detox program and adolescent residential program. When asked if other programs could be given direct funding in the 2025 bill, Kraayenbrink said more allocations could be made as negotiations occur between the two chambers. Amy Campbell with the Iowa Behavioral Health Association praised the measure for including input from the district behavioral health advisory councils in the distribution of the funds. She said these councils will be able to see funding needs in their communities as disbursement begins from local governments and through the state.
The House had offered an amendment creating a grant program for settlement funds through HHS in addition to establishing an advisory council to oversee and make recommendations about funding these grants each year. The advisory council was not approved by the Senate, leaving the settlement funds undistributed last year. Kraayenbrink said he was not sure if House members would pursue this oversight component again, but said he wanted to ensure that negotiations begin on the Opioid Settlement Fund. Sen. Janet Petersen, D-Des Moines, said she supported starting the conversation on the settlement fund.
The bill moves to the Senate Appropriations Committee for further consideration.
