Opioid Settlement Funding for Recovery Housing: Complete State-by-State Guide for 2026

Opioid Settlement Funding for Recovery Housing: Complete State-by-State Guide for 2026

Opioid settlement funding is one of the largest funding opportunities ever available to sober living home operators. With over $50 billion flowing to states and local governments through 2038, recovery housing is explicitly named as an approved use in the national settlement framework. This guide covers every state, the major settlement agreements, application processes, and practical strategies for accessing these funds for your sober living home.

Table of Contents

• Understanding the Opioid Settlements
• How Recovery Housing Qualifies
• State-by-State Funding Guide
  • Northeast
  • Southeast
  • Midwest
  • West
  • Territories and District of Columbia
• How to Apply for Opioid Settlement Funding
• Eligible Uses of Funds
• Maximizing Your Application
• Local Government Funding Opportunities
• Timeline and Future Outlook

Understanding the Opioid Settlements

The opioid settlement represents one of the largest legal resolutions in American history, second only to the 1990s tobacco settlement. Pharmaceutical manufacturers, distributors, and pharmacy chains misled doctors and patients about the risks of opioid medications, contributing directly to the addiction crisis that has claimed hundreds of thousands of lives.

Major Settlement Agreements

Multiple settlement agreements make up the total funding pool. The largest include:

• Purdue Pharma / Sackler Family: Approximately $6 billion after Purdue filed for bankruptcy. This was one of the first major settlements, with courts finding that the company systematically deceived the American public about the addictive properties of OxyContin.
• Johnson & Johnson: $5 billion over nine years for marketing opioid raw materials.
• McKesson, Cardinal Health, and AmerisourceBergen (Distributors): $21 billion over 18 years. These three major distributors failed to flag and halt suspicious orders of opioid medications.
• CVS, Walgreens, and Walmart (Pharmacies): Approximately $13.8 billion combined for failing to maintain effective controls against diversion of prescription opioids.
• Teva Pharmaceutical: $4.35 billion in cash and medications.
• Allergan: $2.37 billion settlement.
• Endo International: $450 million after bankruptcy.
• Mallinckrodt: $1.7 billion settlement.

Total Settlement Amounts

Across all agreements, the total exceeds $50 billion flowing to state, county, and local governments over approximately 15 to 18 years. The exact amount each jurisdiction receives is determined by formulas that factor in population, overdose death rates, opioid prescription volumes, and other measures of community impact.

Distribution Timeline

Most states began receiving initial payments in 2022 or 2023. Disbursements will continue annually through approximately 2038. The payment schedule is front-loaded, meaning the largest annual payments occur in the first five to seven years. Each settlement agreement has its own payment timeline, so states receive multiple streams of funding on different schedules.

How Recovery Housing Qualifies

Recovery housing is explicitly named as an approved expenditure in the national settlement framework. The settlement agreements include a list of approved opioid remediation uses, commonly referred to as “Exhibit E” or the “approved use categories.” These categories broadly include treatment, recovery, prevention, and harm reduction activities.

Approved Use Categories That Apply to Recovery Housing

Recovery housing operators should be aware of several categories that directly support sober living home funding:

• Recovery support services: Recovery housing, peer support services, and recovery coaching are specifically listed.
• Supportive housing: Transitional housing programs that serve individuals in recovery from opioid use disorder.
• Warm hand-off programs: Recovery residences that connect individuals leaving treatment to ongoing recovery support.
• Comprehensive wrap-around services: Programs that combine housing with transportation, job training, childcare, and care coordination.
• Expansion of treatment capacity: Opening new recovery residences to meet unmet demand in a community.

The National Framework

The national settlement agreements established a framework that encourages states and local governments to spend funds on evidence-based strategies. While states have discretion in how they allocate money, the approved use list provides clear justification for funding recovery housing. Most states have adopted these categories directly or created their own lists that closely mirror the national framework.

Recovery housing operators benefit from this structure because they do not need to convince state administrators that their work qualifies. The qualification is built into the settlement terms. The challenge is competing effectively for limited funds against other qualified uses.

State-by-State Funding Guide

The following guide organizes states by region and provides key information about settlement amounts, administering agencies, and application status. Use this as a starting point for research, and always verify current details with your state’s settlement administrator.

Northeast

Connecticut: Connecticut is receiving hundreds of millions in settlement funds managed through the Office of the Attorney General. The state has prioritized treatment expansion and recovery support services. Local municipalities also receive direct allocations.

Maine: Maine will receive over $235 million over 20 years. The Maine Recovery Council manages 50% of the funds. The Attorney General’s office controls 20%, and local governments (counties, cities, and towns) receive the remaining 30%. The Maine Recovery Council approves funding for naloxone distribution, evidence-based treatment including MAT, and prevention programs. Recovery residences seeking funding should contact their local governments for the most direct path to consideration.

Massachusetts: Massachusetts has been one of the hardest-hit states. Settlement funds are managed through the Attorney General’s office and distributed to municipalities based on impact formulas. The state has a strong emphasis on evidence-based treatment and recovery support. Recovery housing operators should monitor both state-level and municipal grant opportunities.

New Hampshire: New Hampshire is set to receive over $310 million over 20 years, with at least $45 million already disbursed. The New Hampshire Opioid Abatement Advisory Commission oversees 85% of funds, while 15% goes to local governments. The Advisory Commission began accepting grant applications in summer 2022, when more than 40 organizations applied. The Commission also works with the Department of Housing on the Supportive Housing Program, which is relevant to sober living operators.

New Jersey: New Jersey has received substantial settlement allocations. Funds are distributed through both state agencies and county-level programs. Recovery housing is included in the state’s approved use categories. Operators should monitor the state’s opioid settlement portal for grant opportunities and contact their county administrators for local funding rounds.

New York: New York has received a substantial $192 million to date. Funding is disbursed through a county-based network using a formula incorporating population, overdose death rate, and other factors. Disbursements occur on a quarterly basis. The state’s Opioid Settlement Fund Tracker provides visibility into award trends. Recovery housing has received direct funding, though amounts vary significantly by county.

Pennsylvania: Pennsylvania is distributing settlement funds through both the state trust and county-level allocations. The state created the Pennsylvania Opioid Misuse and Addiction Abatement Trust to manage the state portion. County governments receive direct allocations and can fund recovery housing programs at their discretion. Operators should connect with their county’s behavioral health department for application guidance.

Rhode Island: Rhode Island is slated to receive over $190 million, with final payments scheduled through 2038. Over $10 million has been received so far. Local governments receive 20% of funds based on population, while the Opioid Settlement Advisory Committee (in association with Rhode Island Health and Human Services) controls 80%. The application process is not well publicized. Operators should contact the committee directly at their published email address to inquire about funding opportunities.

Vermont: Vermont received over $100 million in settlement funds, managed by the Vermont Opioid Settlement Advisory Committee. Recovery residences are eligible. Notably, Recovery Partners of Vermont submitted a proposal requesting $3,040,000 for 16 certified recovery residences at $190,000 per home, demonstrating that significant per-residence funding is achievable.

Southeast

Alabama: Alabama is receiving settlement funds managed through the state’s opioid abatement program. Recovery housing is included in the approved use categories. Operators should monitor the state attorney general’s website for grant announcements and connect with their county governments for local allocation opportunities.

Florida: Florida began distributing settlement money in 2023, starting with $205.7 million in year one of many years of funding. The state uses a unique three-prong distribution system: the state controls one pool, counties manage a regional fund, and a third pool goes directly to cities and counties that pursued their own settlements. The Statewide Council on Opioid Abatement monitors spending and advises governments on strategy. Sober living homes are included in the state’s approved uses for settlement funds.

Georgia: Georgia will receive a total of $638 million. The state retains 75% and plans to distribute it through a regionally-focused approach. Georgia lagged behind in setting up its distribution apparatus but has been making progress. Some counties, like Chatham County, received independent smaller settlements and have already begun dispersing funds to existing county partners. Operators should monitor the state’s evolving grant portal for formal application opportunities. For more on operating in this state, see Opening a Sober Living Home in Georgia.

Kentucky: Kentucky is receiving $900 million total. Half goes to the state and half to cities and counties. The Kentucky Opioid Abatement Advisory Commission (KYOAAC) manages the state portion and operates an informative website with grant requirements and an application portal. Important limitation: while sober living homes are eligible, Kentucky does not allow settlement funds to be spent on land purchases, construction, renovation, building permits, or vehicles. Operators must focus applications on services, staffing, and operations. See also How to Open a Sober Living Home in Kentucky.

North Carolina: North Carolina received $1.5 billion, distributed over 18 years. A significant 85% goes to county and municipal governments, which decide independently how to spend the money. Recovery housing support is named as an approved and recommended strategy. Notably, North Carolina has no state-level requirement that funds be limited to programs accepting MAT residents, meaning abstinence-based sober living homes can also qualify for settlement funding.

South Carolina: South Carolina distributes settlement funds through both state and local channels. Recovery housing operators should monitor the state attorney general’s office and their local county governments for grant announcements. The approved use categories follow the national framework, which includes recovery housing.

Tennessee: Tennessee received $31.4 million in initial settlement allocations. The Tennessee Opioid Abatement Council manages disbursement. 35% goes directly to county governments for local control and supervision. The remaining funds are granted through a competitive application process. Sober living homes and recovery housing are named as eligible entities, with the stipulation that funded residences must allow MAT medications and integrate other support services. Application portal availability is periodic, so operators should check the Opioid Abatement Council website regularly.

Virginia: Virginia is receiving substantial settlement funds distributed through both the state and local jurisdictions. The state has created dedicated programs for recovery support services that include recovery housing. Operators should contact the Virginia Department of Behavioral Health and Developmental Services for current funding opportunities.

West Virginia: Considered ground zero of the opioid crisis, West Virginia will receive $1 billion over 18 years. The West Virginia First Foundation controls approximately 75% of the funds, with the remainder going to local governments. The West Virginia First Foundation is actively accepting grant applications through its website. Given the severity of the opioid crisis in the state, recovery housing has been a priority funding category.

Midwest

Illinois: Illinois distributes settlement funds through the state attorney general’s office and local government allocations. Recovery housing is included in the approved use framework. The state has prioritized expanding treatment capacity, which includes recovery residence development. Operators should monitor both state-level and county-level grant announcements.

Indiana: Indiana manages settlement funds through the state’s addiction services division and local government allocations. Recovery housing is an approved use category. The state has been active in funding recovery support services and operators should connect with their county’s behavioral health board for local application opportunities.

Michigan: Michigan distributes settlement funds through both state agencies and local government allocations. Recovery housing qualifies under the approved use categories. The state has emphasized expanding access to recovery services in rural and underserved communities. Operators in those areas may find enhanced funding opportunities. For more on operating in this state, see How to Open a Sober Living Home in Michigan.

Minnesota: Minnesota will receive in excess of $300 million over 18 years. Uniquely, 75% of this money is controlled by individual counties and cities, while only 25% is controlled at the state level. There is no centralized application process for sober living funding. Operators must locate the funding application at the specific city or county where they provide services. For example, Ramsey County hosts an Opioid Response Community Grants program where applications and information can be found. Treatment, prevention, and harm reduction are all funded categories.

Missouri: Missouri received $88.8 million from pharmaceutical settlements in 2023. Sober living homes fall under the “allowable use” for funding, along with supportive housing, recovery housing, and housing assistance. The state has published annual reports tracking how funds are being allocated, providing transparency for applicants.

Ohio: Ohio launched its grant distribution program in early 2024. Over $1 billion will be distributed, with $860 million managed by the Ohio Opioid Settlement Project (created by Harm Reduction Ohio through the OneOhio Foundation). The grant application process runs on annual cycles. Recovery housing operators can access the OneOhio Grant Portal to register and submit applications. The OneOhio Foundation’s grants page provides detailed guidance on the application process.

Wisconsin: Wisconsin distributes settlement funds through the state’s Department of Health Services and direct local government allocations. Recovery housing is an approved use category. Operators should monitor their county health department and the state DHS for grant announcements and application windows.

West

Alaska: Alaska expects to receive $58 million in settlement funds. The state has been slower than others in establishing a formal distribution mechanism. Lawmakers have not yet fully defined how funds will be allocated, who will make funding decisions, or what oversight mechanisms will be in place. Operators should monitor the Alaska Department of Health for updates as the distribution framework develops.

Arizona: Arizona was one of the first states to receive settlement money, beginning in 2022. Each county is responsible for assigning funding to local organizations. For example, Rock County awarded $800,000 across several sober living homes from its $5 million settlement pool. Sober living homes and recovery residences are categorically included as funding priorities statewide. Operators should contact their county’s settlement administrator for current application opportunities.

California: California deposits all opioid settlement money into a centralized Opioids Settlements Fund overseen by the Department of Health Care Services. Funds are disbursed through standard legislative budgetary processes. 80% ultimately flows to city and county governments. The California Opioid Response website lists current and past funded projects. Operators should monitor both the state website and their local government for funding opportunities as they become available.

Colorado: Colorado has received over $7 million in initial settlements, with $4.5 million allocated to the Denver area. The Colorado Opioid Abatement Council manages state-level funds and meets twice a year to consider proposals. There are 19 regional councils that work directly with organizations seeking funding. Recovery housing is a high priority in several regions. The SouthWEST Opioid Response District, for example, dedicated over half of its $1.5 million allocation specifically to building recovery housing.

Hawaii: Hawaii is in possession of approximately $19 million, which will grow to over $100 million over many years. The state has been slow to establish a distribution mechanism. Legislative efforts have been underway to create a dedicated fund and staffing structure to administer disbursement. Recovery housing operators should monitor legislative developments for updates on when formal application processes will be established.

Idaho: Idaho distributes settlement funds through the state’s Department of Health and Welfare and direct allocations to counties. Recovery housing is an approved use category under the national framework. Operators should contact their county commissioners and the state department for current funding information.

Montana: Montana is receiving approximately $13 million in initial allocations. 70% is controlled by the Montana Opioid Abatement Trust, which meets quarterly to review grant applications. The remaining 30% is split between state government and local governments. The Trust’s approved uses document specifically names recovery housing as a priority, under “expanding warm hand-off programs and recovery services.” The grant portal is active and accepting applications through the Montana Opioid Trust online system.

Nevada: Nevada manages settlement funds through the state attorney general’s office and local government allocations. Recovery housing qualifies under the approved use categories. The state has prioritized expanding treatment and recovery infrastructure, particularly in underserved communities.

New Mexico: New Mexico distributes settlement funds through the state’s Behavioral Health Services Division and direct local allocations. Recovery housing is included in the approved use framework. The state has emphasized harm reduction and treatment access in its funding priorities.

Oregon: Oregon manages settlement funds through both state agencies and county health departments. Recovery housing is a recognized priority in the state’s opioid response strategy. The state has been active in funding recovery support services, and operators should monitor the Oregon Health Authority for grant opportunities.

South Dakota: South Dakota has begun processing applications for opioid settlement money. The state splits funding with 70% controlled at the state level and the remainder by local governments. The South Dakota Opioid Settlement Fund Community Grant Program oversees distribution. Application windows open periodically, so operators should check with the Department of Social Services, which also offers a variety of other grant opportunities for the addiction treatment community.

North Dakota: North Dakota’s Health and Human Services Behavioral Health Division manages the state’s $7 million allocation. At least 20% must be used for opioid use prevention. Grant proposals are accepted on a rolling basis with periodic application deadlines. Recovery housing operators should monitor the Behavioral Health Division for current application cycles.

Texas: Texas was awarded approximately $1.6 billion, the largest allocation of any state, to be received over 18 years. The Texas Opioid Abatement Fund Council manages distribution. The Council has been developing its formal application process and targeting disbursements. Operators can submit an “Intent to Apply” form to notify the state of their interest and sign up for email updates about application timelines. Given the size of the allocation, Texas represents one of the largest funding opportunities for recovery housing in the country. See also How to Open a Sober Living Home in Texas.

Utah: Utah manages settlement funds through the state’s Division of Substance Abuse and Mental Health. Recovery housing is included in the approved use categories. Operators should contact their local health department and the state division for current funding opportunities.

Washington: Washington distributes settlement funds through the state’s Health Care Authority and local government allocations. Recovery housing is a recognized component of the state’s opioid response. The state has made significant investments in expanding recovery infrastructure.

Wyoming: Wyoming is receiving $4.38 million, one of the smallest allocations of any state. True to the state’s localist approach, local governments control the majority of funds while the Wyoming Department of Health receives just 35%. Sober living operators should contact their county and city governments directly to learn about local funding decisions and application processes.

Territories and District of Columbia

Washington, D.C.: The District is set to receive over $80 million over 20 years. The Opioid Abatement Advisory Commission makes spending decisions in association with LiveLong DC, the entity that coordinates addiction treatment efforts in the District. LiveLong DC identifies four priority categories: prevention, harm reduction, treatment, and recovery. The recovery category may include sober living home funding, though the formal application process has not been clearly publicized. Operators should contact the commission directly or attend public meetings (available via Zoom) to inquire about opportunities.

How to Apply for Opioid Settlement Funding

Accessing opioid settlement funding requires a strategic approach. Because application processes vary significantly by state and even by county, operators need to be proactive, organized, and persistent.

Step 1: Identify Your State’s Settlement Administrator

Start by identifying who manages opioid settlement funds in your state. This is typically one of the following:

• Attorney General’s office: Many states route settlement funds through the AG.
• Dedicated Opioid Abatement Commission or Council: States like Tennessee, Ohio, Kentucky, and Colorado have created special entities to manage distribution.
• Department of Health or Behavioral Health: Some states assign management to existing health agencies.
• Local governments: In many states, a significant portion (sometimes 75% or more) goes directly to county and municipal governments.

Step 2: Monitor Grant Announcements

Most settlement administrators announce grant cycles periodically. Set up email alerts, attend public meetings, and check websites regularly. Many application windows are short, sometimes just 30 to 60 days, so being informed early is critical.

Step 3: Prepare Your Documentation

Before an application window opens, prepare the following:

• Organizational documents: Articles of incorporation, tax-exempt status (if applicable), business licenses
• NARR certification or equivalent: States increasingly favor certified recovery residences. See our NARR Certification Guide for details.
• Financial statements: Audited or reviewed financials demonstrating fiscal responsibility
• Outcome data: Resident retention rates, employment outcomes, sobriety milestones, recidivism data
• Program description: Detailed overview of services, staffing, capacity, and target population
• Needs assessment: Data demonstrating unmet demand for recovery housing in your community

Step 4: Submit a Strong Proposal

Your proposal should clearly articulate how settlement funds will expand or improve recovery housing services. Focus on community impact, evidence-based practices, and measurable outcomes. See the Maximizing Your Application section below for specific tips.

Eligible Uses of Funds

While specific allowed uses vary by state, the national settlement framework provides broad categories that apply in most jurisdictions. Understanding these categories helps operators craft compelling applications.

Capital Expenditures

• Acquiring new properties for recovery residences
• Renovating or upgrading existing recovery housing facilities
• Purchasing furniture, fixtures, and equipment
• ADA compliance improvements
• Safety and security upgrades

Note: Some states, like Kentucky, explicitly exclude capital expenditures from settlement funding. Always verify your state’s specific rules.

Operational Costs

• Rent or mortgage subsidies during startup periods
• Utility costs for new residences
• Insurance premiums
• Maintenance and upkeep
• Administrative overhead (often capped at a percentage)

Staffing

• Hiring peer support specialists and recovery coaches
• House manager salaries
• Clinical supervision costs
• Staff training and professional development
• Background check and onboarding expenses

Technology and Infrastructure

• Recovery housing management software for resident tracking, billing, and compliance
• Electronic health record systems
• Communication platforms
• Drug testing equipment and supplies
• Telehealth infrastructure

Resident Support

• Scholarship programs for residents who cannot afford housing fees
• Transportation assistance
• Job training and employment support
• Childcare subsidies
• Recovery support materials and programming

Training and Capacity Building

• NARR certification costs
• Staff credentialing and continuing education
• Quality assurance program development
• Outcomes measurement system implementation

Maximizing Your Application

Competition for opioid settlement funds is significant. These strategies can improve your chances of securing funding.

Demonstrate NARR Certification

States and local governments increasingly prioritize NARR-certified recovery residences. Certification signals that your program meets national quality standards, follows evidence-based practices, and maintains accountability. If you are not yet certified, pursuing certification before applying strengthens your position considerably.

Present Compelling Data

Settlement administrators want to fund programs that will make a measurable difference. Include in your application:

• Community need data: Overdose rates, treatment gap statistics, waitlist numbers in your area
• Your outcome metrics: Resident success rates, average length of stay, employment outcomes
• Cost-effectiveness: Demonstrate that funding your program delivers strong return on investment compared to alternatives
• Growth projections: Show how settlement funding will enable expansion of capacity or services

Build Partnerships

Collaborative applications often score higher than standalone requests. Consider partnering with:

• Local treatment centers for referral pipelines
• Hospitals and emergency departments for warm hand-off programs
• Workforce development agencies for resident employment support
• Other recovery housing providers for regional proposals
• Universities or research institutions for outcomes evaluation

Align With State Priorities

Review your state’s opioid settlement spending plan or strategic priorities. Frame your application in language that matches their stated goals. If the state emphasizes rural access, highlight rural service gaps. If the state prioritizes MAT-supportive housing, emphasize your MAT-friendly policies.

Start With a Strong Business Plan

A comprehensive business plan demonstrates organizational maturity and operational readiness. It also shows settlement administrators that their investment will be managed responsibly. See our guide to starting a sober living home for business planning fundamentals.

Consider Organizational Structure

Your organizational structure affects eligibility for certain funding streams. Some settlement funds may only be available to nonprofit organizations, while others are open to all qualified operators.

Local Government Funding Opportunities

A significant and often overlooked funding pathway is through county and city governments. In many states, 20% to 85% of settlement funds flow directly to local jurisdictions, which have broad discretion in how they spend the money.

Why Local Government Funding Matters

• Less competition: Fewer applicants compete at the county level compared to state-level grants.
• Relationship-driven: Local officials are often more accessible and responsive to community-based organizations.
• Faster decisions: Local governments may move more quickly than state commissions.
• Flexible requirements: Local jurisdictions sometimes have simpler application processes.

How to Access Local Funds

1. Contact your county administrator or health department: Ask about opioid settlement fund allocation plans.
2. Attend county board or commission meetings: Settlement spending is often discussed in public meetings before formal grant cycles begin.
3. Build relationships with local elected officials: Help them understand the role recovery housing plays in addressing the opioid crisis in your community.
4. Offer to present: Many local officials are unfamiliar with recovery housing. Educating them about your model can position you as a natural funding recipient.
5. Check neighboring jurisdictions: Some counties may have unspent funds or different application timelines.

Timeline and Future Outlook

Current Status (2026)

As of early 2026, the opioid settlement distribution system is well into its active phase. Key developments include:

• Most states have established administrative frameworks for managing and distributing settlement funds.
• Multiple application cycles have been completed in states like Ohio, Kentucky, Montana, New Hampshire, and South Dakota.
• Front-loaded payments mean the next few years represent the peak funding window. States are receiving their largest annual disbursements now.
• Accountability measures are being implemented, with states publishing spending reports and outcomes data.

Looking Ahead (2027-2038)

• Annual disbursements will continue through approximately 2038, though amounts will gradually decrease.
• Later funding rounds will increasingly favor organizations with demonstrated outcomes from earlier grants.
• NARR certification will likely become a standard expectation, not just an advantage.
• Technology-enabled reporting will be increasingly important as states demand better outcomes data from funded programs.
• Consolidation: States may shift from broad distribution to targeting proven models and high-performing operators.

Key Dates to Watch

• State legislative sessions (January through June in most states) often address settlement fund policies.
• Federal fiscal year (October 1) drives many state-level budget decisions.
• Settlement payment dates vary by agreement but are generally annual.
• Application windows are often announced 30 to 90 days before deadlines.

Getting Started

If you operate or plan to open a sober living home, opioid settlement funding represents a generational opportunity. The money is available, recovery housing is an approved use, and the distribution infrastructure is now operational in most states.

Start today by identifying your state’s settlement administrator, preparing your documentation, and building relationships with local government officials. For operators just beginning their journey, our guide on how to start a sober living home provides a comprehensive foundation, and our grants and funding guide covers additional funding sources beyond opioid settlements.

Sober Living App helps recovery housing operators manage residents, track outcomes, handle billing, and maintain the kind of data-driven operations that strengthen grant applications. Our all-in-one platform handles rent collection, admissions, property management, care coordination, staff scheduling, and compliance documentation, giving you the tools to run a professional operation and demonstrate the results funders want to see.

Last Updated: February 2026