{"id":46217,"date":"2026-08-07T15:58:03","date_gmt":"2026-08-07T10:28:03","guid":{"rendered":"https:\/\/banitoday.com\/budget-battle-erupts-in-nations-capital-over-opioid-settlement-money\/"},"modified":"2026-08-07T15:58:03","modified_gmt":"2026-08-07T10:28:03","slug":"budget-battle-erupts-in-nations-capital-over-opioid-settlement-money","status":"publish","type":"post","link":"https:\/\/banitoday.com\/hi\/budget-battle-erupts-in-nations-capital-over-opioid-settlement-money\/","title":{"rendered":"Budget Battle Erupts in Nation\u2019s Capital Over Opioid Settlement Money"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"is-variant-full wp-block-kff-shared-podcast-player\" id=\"podcast-player-1\" data-audio-url=\"https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-OSF-WAMU-Spot-Mix-V2.wav\" data-play-label=\"Play\" data-pause-label=\"Pause\">\n<div class=\"wp-block-kff-shared-podcast-player__embed-modal\" hidden=\"\">\n<div class=\"wp-block-kff-shared-podcast-player__embed-modal-content\">\n<p>\t\t<textarea class=\"wp-block-kff-shared-podcast-player__embed-code\" readonly=\"readonly\" rows=\"3\">&lt;iframe src=&#8221;https:\/\/kffhealthnews.org\/public-health\/washington-dc-opioid-settlements-medicaid-budget-supplantation\/embed\/&#8221; width=&#8221;600&#8243; height=&#8221;200&#8243; frameborder=&#8221;0&#8243; scrolling=&#8221;no&#8221; title=&#8221;Budget Battle Erupts in Nation\u2019s Capital Over Opioid Settlement Money&#8221;&gt;&lt;\/iframe&gt;<\/textarea><br \/>\n\t\t<button type=\"button\" class=\"wp-block-kff-shared-podcast-player__embed-copy-btn\"><br \/>\n\t\t\tCopy\t\t<\/button>\n\t<\/div>\n<\/div>\n<\/div>\n<p>For years, Washington, D.C., has paid for Medicaid \u2014 the state-federal health insurance program for low-income people \u2014 out of its general budget. But next year, the city is shifting part of that recurring multimillion-dollar cost to a new funding source: opioid settlement dollars.<\/p>\n<p>That\u2019s raising red flags for addiction recovery advocates, people directly affected by the crisis, and the commission in charge of recommending how the city uses its share of the settlement money.<\/p>\n<p>The <a href=\"https:\/\/www.kffhealthnews.org\/opioid-settlements\">opioid payouts<\/a> come from a host of companies that made or distributed prescription painkillers and were accused of fueling the overdose crisis. State and local governments nationwide are set to receive more than $50 billion over almost two decades. Washington, D.C.\u2019s cut is expected to <a href=\"https:\/\/www.opioidsettlementtracker.com\/everything\">exceed $100 million<\/a>.<\/p>\n<p>The money is meant to remediate the addiction crisis, often by increasing services or funding new programs.<\/p>\n<p>But many states are <a href=\"https:\/\/kffhealthnews.org\/health-care-costs\/nevada-governor-budget-tanf-opioid-settlement-funds-supplantation\/\">facing increasing fiscal pressures<\/a> as they are squeezed by inflation, federal funding cuts, and rising costs. Some <a href=\"https:\/\/kffhealthnews.org\/courts\/opioid-settlement-money-controversy-replacement-funds-budget-supplantation-addiction-services\/\">officials have been tempted<\/a> to turn to opioid settlement cash as a budget stopgap \u2014 an idea that can trigger opposition and outrage from recovery advocates and people who have struggled with opioid addiction and their family members.<\/p>\n<p>\u201cThese funds were awarded to D.C. for very specific reasons and with a specific mandate, which are to remediate issues related to the opioid crisis in new and innovative ways,\u201d said Queen Adesuyi, a partner at <a href=\"https:\/\/www.reframehealthandjustice.com\/about\">Reframe Health and Justice<\/a>, a consulting group for community-based organizations, who is crying foul over the proposed fiscal year 2027 budget.<\/p>\n<div class=\"wp-block wp-block-kff-shared-newsletter  wp-block-kff-shared-newsletter--background-white\" data-type=\"kff-shared\/newsletter\" data-align=\"center\">\n<div class=\"wp-block-kff-shared-newsletter__container\">\n<div class=\"wp-block-kff-shared-newsletter__content\">\n\t\t\t<img decoding=\"async\" src=\"https:\/\/kffhealthnews.org\/wp-content\/plugins\/kff-shared\/dist\/\/images\/newsletter-icon.png\" alt=\"Newsletter Icon\" class=\"wp-block-kff-shared-newsletter__img\"\/><\/p>\n<div class=\"wp-block-kff-shared-newsletter__text\">\n<h4 class=\"newsletter__title\">\n\t\t\t\t\tEmail Sign-Up\t\t\t\t<\/h4>\n<p class=\"newsletter__description\">\n\t\t\t\t\tSubscribe to KFF Health News&#8217; free Morning Briefing.\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p>A document provided to KFF Health News shows line items in the district\u2019s fiscal 2027 budget that would direct about $2.3 million in opioid settlement funds to help pay for the city\u2019s Medicaid contribution and at least $5.5 million to support addiction treatment centers previously funded through the general budget. Substituting opioid settlement dollars for general funding keeps overall spending on treatment flat instead of increasing.<\/p>\n<p>\u201cOpioid settlement dollars are not meant to be a rainy-day fund for existing government obligations,\u201d said <a href=\"https:\/\/oneill.law.georgetown.edu\/experts\/shelly-weizman\/\">Shelly Weizman<\/a>, associate director of the Center on Addiction and Public Policy at Georgetown Law\u2019s O\u2019Neill Institute.<\/p>\n<p>More than 80 individuals and 30 city organizations <a href=\"https:\/\/www.documentcloud.org\/documents\/28519658-letter-on-dc-dbh-opioid-abatement-advisory-commission-funds\/\">signed a letter<\/a> protesting this use of settlement dollars, saying the district\u2019s <a href=\"https:\/\/dbh.dc.gov\/\">Department of Behavioral Health<\/a> planned to spend opioid cash to \u201cpay off its own debts.\u201d The letter was sent to DBH Director Barbara Bazron; the chair of the D.C. Council\u2019s Committee on Health, <a href=\"https:\/\/dccouncil.gov\/council\/at-large-councilmember-christina-henderson\/\">Christina Henderson<\/a>; and Attorney General <a href=\"https:\/\/oag.dc.gov\/about-oag\/our-structure-divisions\/about-attorney-general\">Brian Schwalb<\/a>.<\/p>\n<p>Chad Jackson, himself in recovery, chairs the district\u2019s <a href=\"https:\/\/dbh.dc.gov\/page\/opioid-abatement-advisory-commission-01\">Opioid Abatement Advisory Commission<\/a>, which was created to advise the city on how to spend its settlement dollars. Jackson called the latest move supplantation, a budgeting tactic that shifts money from one fund to another to free up dollars.<\/p>\n<p>\u201cIf the opioid settlement funds were not there, I feel pretty confident that these things would have been funded, because they have to be funded,\u201d Jackson said.<\/p>\n<p>What\u2019s happening now is against the district\u2019s opioid litigation law, he said.<\/p>\n<p>The <a href=\"https:\/\/code.dccouncil.gov\/us\/dc\/council\/laws\/24-315\">law says<\/a> that money from the district\u2019s opioid abatement fund \u201cshall supplement, and not supplant.\u201d<\/p>\n<p>\u201cIt\u2019s a pretty tightly written law where the intent is very clear: Do not supplant,\u201d Weizman said.<\/p>\n<p>Adesuyi, an advocate for programs that help people who use drugs, said the council is flouting that law and that it\u2019s a \u201cslap in the face.\u201d<\/p>\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" width=\"1986\" height=\"1324\" src=\"https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg\" alt=\"A woman speaks into a microphone. In front of her are people sitting at tables in a U formation.\" class=\"wp-image-2268731\" srcset=\"https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg 1986w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=150,100 150w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=500,333 500w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=768,512 768w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=1270,847 1270w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=1536,1024 1536w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=120,80 120w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=300,200 300w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=600,400 600w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=834,556 834w, https:\/\/kffhealthnews.org\/wp-content\/uploads\/sites\/8\/2026\/07\/DC-opioid-settlement03_3x2web.jpg?resize=1668,1112 1668w\" sizes=\"(max-width: 1986px) 100vw, 1986px\"\/><figcaption class=\"wp-element-caption\">Queen Adesuyi is a Washington, D.C.-based harm reduction advocate and partner at Reframe Health and Justice, a consulting group for community-based organizations. At the July 15 meeting of the Opioid Abatement Advisory Commission, they speak against the city\u2019s use of opioid settlement dollars to fill budget holes. (Aneri Pattani\/KFF Health News)<\/figcaption><\/figure>\n<p>Councilmember Henderson and Attorney General Schwalb weighed in too.<\/p>\n<p>\u201cWe are also concerned that DBH may be using the settlement monies for other unauthorized purposes,\u201d they wrote in a <a href=\"https:\/\/www.documentcloud.org\/documents\/28531132-dc-opioid-settlements-letter-from-oag-cm-henderson-to-dbh-7-17-26\/\">July 17 letter<\/a><a\/><a\/> to the department. They highlighted the $2.3 million used to cover the city\u2019s Medicaid contribution and asked the department to explain by July 31 how it determined that was legal.<\/p>\n<p>It\u2019s unclear whether the Department of Behavioral Health met that deadline. DBH, Henderson\u2019s office, and the attorney general\u2019s office did not respond to that specific question.<\/p>\n<p>However, DBH spokesperson <a href=\"https:\/\/dbh.dc.gov\/page\/media-inquiries-1\">Denise Reed<\/a><a\/><a\/> said in a statement that the department is \u201ccommitted to compliance with all statutory requirements governing opioid settlement funds.\u201d The department\u2019s general position has been that its budget was approved by the council, and that the funding supports efforts that counter opioid addiction.<\/p>\n<p>The council <a href=\"https:\/\/wtop.com\/dc\/2026\/06\/dc-council-passes-budget-amid-cfo-dispute-funds-open-primaries\/\">in June<\/a> \u201cpassed a legally-certified budget for the next fiscal year that makes the best use of all local resources, including the opioid settlement fund, to award grants to 17 community-based providers who last year served nearly 9,800 residents including 3,500 in medication-assisted treatment for opioid addiction,\u201d Reed told KFF Health News.<\/p>\n<p><a href=\"https:\/\/dcnet.webex.com\/recordingservice\/sites\/dcnet\/recording\/f2eba88c590f406e936d6a26faf46b6e\/playback\"\/>The district\u2019s budget is pending a 30-day \u201ccongressional review,\u201d which is the last step in its <a href=\"https:\/\/www.dccouncilbudget.com\/budget-process-step-by-step\">annual budgeting process<\/a>.<\/p>\n<p>Still, some residents like Adesuyi want more accountability for how the opioid money is spent.<\/p>\n<p>\u201cThe drug supply is getting a lot more unpredictable, which calls for some nimbleness, and it calls for interventions that are more courageous. Unfortunately, DBH is not meeting the mark when it comes to that,\u201d Adesuyi said, adding, \u201cIt\u2019s frustrating, it\u2019s disappointing, and it\u2019s enraging because people are dying unnecessarily in the district to overdose.\u201d<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/kffhealthnews.org\/public-health\/washington-dc-opioid-settlements-medicaid-budget-supplantation\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&lt;iframe src=&#8221;https:\/\/kffhealthnews.org\/public-health\/washington-dc-opioid-settlements-medicaid-budget-supplantation\/embed\/&#8221; width=&#8221;600&#8243; height=&#8221;200&#8243; frameborder=&#8221;0&#8243; scrolling=&#8221;no&#8221; title=&#8221;Budget Battle Erupts in Nation\u2019s Capital Over Opioid Settlement Money&#8221;&gt;&lt;\/iframe&gt; Copy For years, Washington, D.C., has paid for Medicaid \u2014 the state-federal health insurance program for low-income people \u2014 out of its general budget. But next year, the city is shifting part of that recurring multimillion-dollar cost to a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10378,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[270],"tags":[],"class_list":["post-46217","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-2"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.10 - aioseo.com -->\n\t<meta name=\"description\" content=\"Copy For years, Washington, D.C., has paid for Medicaid \u2014 the state-federal health insurance program for low-income people \u2014 out of its general budget. 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