The Iowa Department of Health and Human Services is launching a process to award grants to communities from settlement money the state has received to battle the opioid crisis.
The state funding announced Friday, Oct. 31, comes from House File 1038, a law Gov. Kim Reynolds signed in June directing 75% of Iowa’s opioid settlement money toward efforts to reduce opioid misuse and its impacts.
It outlines how Iowa will spend the millions of dollars the state has received through national settlements with drug manufacturers and pharmaceutical companies.
The law passed after years of legislative inaction to spend more than $56 million in settlement money Iowa has received so far.
“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,” Reynolds said in a news release.
Despite some concerns that the legislation was overly prescriptive, it passed with broad support in both chambers in the 2025 legislative session’s final hours late May 14.
The law largely uses the Senate’s plan for state agencies to lead the charge in awarding future settlement funds with elements of the House’s proposal for a “bottom up” approach guided by the seven new behavioral health districts closest to opioid addiction services — though not to the extent some lawmakers wanted.
To spend the backlogged settlement funds, the law directed $29 million to the Iowa Department of Health and Human Services to give to various organizations across the state toward infrastructure. Another $27 million can be used for programming needs among the behavioral health districts.
That money comes from fiscal year 2025, which ended June 30.
Starting July 1 through June 30, 2030 — budget years 2026 through 2030 — the bill directs 75% of funds to Iowa HHS and 25% to the Iowa attorney general’s office to use to combat and treat opioid addiction.
The Iowa Attorney General’s Office anticipates the state will receive more than $325 million from the opioid settlements through fiscal year 2039. Half the funds are given to local governments based on population and the other half goes to the state, all for use on opioid addiction treatment and prevention services.
How will Iowa HHS award funds?
Iowa HHS will use a competitive application process to divvy up funds. One round starts now and another will start in the spring, with $7 million available in each round. Each project can receive up to $1 million
Projects must prioritize:
Iowa HHS says agency officials met with all seven of the new behavioral health district advisory councils to hear about local needs.
“These funds are a vital step in helping individuals and families recover from the devastating effects of opioid addiction,” Iowa HHS Director Larry Johnson said in a statement. “Our goal is to bring healing and hope to every corner of the state.”
More information and the application are available at iowagrants.gov.
Marissa Payne covers the Iowa Statehouse and politics for the Register. Reach her by email at mjpayne@registermedia.com. Follow her on X, formerly known as Twitter, at @marissajpayne.
This article originally appeared on Des Moines Register: Iowa HHS will award grants from Iowa’s opioid settlement funds. How the process works:
Reporting by Marissa Payne, Des Moines Register / Des Moines Register
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