DHS Provides Update on Distribution of Latest Opioid Settlement Funds

DHS Provides Update on Distribution of Latest Opioid Settlement Funds

Seeks ideas for investing fiscal year 2026 opioid settlement funds

The Wisconsin Department of Health Services (DHS) awarded agencies in communities across the state more than $21 million from the state's latest share of opioid settlement funds from October through December of 2025, the largest amount awarded in a quarterly period since Wisconsin began receiving funds in 2022 from the national litigation against pharmaceutical manufacturers, pharmaceutical distributors, and pharmacy chains. Grants awarded support projects designed to prevent non-medical use of opioids, reduce the harms of opioid use, and expand access to treatment and recovery supports for people with an opioid use disorder.

"This funding continues to embrace evidence-based approaches to meet people where they're at," said DHS Director of Substance Use Initiatives Michelle Haese. "We are making intentional investments in supports and services for Wisconsinites, ultimately helping to improve and save the lives of people experiencing substance misuse or substance use disorders."

Dollars are being spent on harm reduction efforts, treatment and recovery programs, capital projects, and education allowing Tribal and law enforcement agencies to better support their communities:

• Building projects, $7.7 million
• Tribal nation abatement, $6 million
• Law enforcement abatement, $3 million
• Naloxone, $3 million
• Room and board costs for Medicaid members in residential substance use disorder treatment, $2,750,000
• Substance use disorder treatment platform, $1.2 million

Two years ago, the Attorney General announced final approval of an agreement with the nation's top three major pharmaceutical distributors (Cardinal, McKesson, and AmerisourceBergen) and Johnson & Johnson, known as the National Prescription Opiate Litigation Case Number MDL 2804. Payments from the distributors will continue for 14 more years. Payments from Johnson & Johnson will continue for seven more years. Wisconsin also began receiving money this year from settlements reached with Teva, Allergan, Walmart, Walgreens, and CVS.

DHS has received approximately $75 million in proceedings from National Prescription Opiate Litigation, Case Number MDL 2804, and is due to receive approximately $153 million in additional settlement funds through 2038. This equates to the state's share of the settlement, which is allocated to DHS to invest in opioid abatement initiatives across the continuum of care.

DHS is asking state residents to weigh in on how best to use the state's share of state fiscal year 2026 opioid settlement funds to reduce harms associated with opioid use disorder, identify potential barriers and existing needs/service gaps, and in turn, save lives. Wisconsinites can make recommendations in the Opioid Settlement Public Input Survey launched today and open until February 28, 2025.

"We've made so much progress in addressing the state's opioid epidemic and saving lives, yet there is still work to do and Gov. Evers and DHS remain focused on supporting the physical, mental, and social well-being of every Wisconsinite with services across the continuum of care," said DHS Director of Substance Use Initiatives Michelle Haese. "Everyone's voice is critical as we plan for using this next round of settlement funds."

While data for 2024 has yet to be finalized, 2023 data show there were 1,421 opioid overdose deaths in Wisconsin, compared to 1,464 in 2022. This reflects a decline in overdose deaths seen across the nation and shows community efforts recommended by the people of our state and funded with these settlement dollars are saving lives.

Find past plans, quarterly reports, and information about the opioid settlement funds on the DHS website. Learn more about the Dose of Reality initiative focused on opioids in Wisconsin that promotes strategies to save lives through prevention, harm reduction, treatment, and recovery supports.

Attend any or all of three DHS events in 2025 related to substance use:

• May 6-8, 2025: Opioids, Stimulants, and Trauma Summit
• July 16-17, 2025: Harm Reduction Conference
• September 10-11, 2025: Substance Use Prevention Conference