Next year, Washington, D.C. plans to use opioid settlement dollars, rather than general budget, to pay for Medicaid costs and existing addiction treatment.

The details: D.C.’s 2027 budget would direct about $2.3 million in opioid settlement funds to help pay for the city’s Medicaid contribution and at least $5.5 million to support addiction treatment centers previously funded through the general budget.

Why it’s important: Substituting opioid settlement dollars for general funding (supplantation) keeps overall spending on treatment flat instead of increasing, as opioid settlement funds were designed to do. D.C. law prohibits supplantation.

More than 80 individuals and 30 city organizations signed a letter protesting this use of settlement funds.

The bigger picture: Opioid settlement funds are meant to remediate the opioid crisis, often by increasing services or funding new programs. But many states are facing increasing fiscal pressures due to inflation, federal funding cuts, and rising costs.

Some officials have turned to opioid settlement dollars as a budget stopgap, despite it going against the spirit of the funds, some state/local laws, and opposition from advocates.