The Biden administration has allocated $1.5 billion to state and trial opioid response efforts.
That breaks down to $1.48 billion for states, territories, and the District of Columbia and $63 million for tribes to address the opioid epidemic. Funds can be used for prevention, harm reduction, opioid use treatment, including medication for opioid use disorder (MOUD), overdose reversal medication and recovery support.
“State and Tribal Opioid Response grants provide essential support in the fight against the overdose crisis,” HHS Secretary Xavier Becerra said in a statement. “This funding is aligned with the HHS Overdose Prevention Strategy and allows states and Tribes to build critical infrastructure and increase capacity in ways that fit their unique needs. The Administration is committed to bolstering the implementation of evidence-based practices that save lives.”
Since 1991, more than a million people have died of a drug overdose, according to the CDC. In 2021, opioids were involved in more than 75% of all overdose deaths.
One of the funding target areas is expanding prevention, harm reduction treatment, and recovery support for young people aged 16 to 25.
Additionally, the funding can be used to expand access to MOUD in correctional settings.
The public sector isn’t the only entity to invest heavily in addiction treatment. The private sector has also been an active investor in addiction and opioid use disorder (OUD) treatments.
In 2023, there were 45 deals in the SUD space, down from 66 in 2022, according to a report by M&A advisory firm the Braff Group. Still, the addiction space was the second most invested in the area of behavioral health last year.
In 2024, several substance use disorder (SUD) treatment center deals have been completed. For example, at the beginning of May, SUD provider Hope River Ranch raised $16.7 million in equity funding.
Additionally, in February, digital SUD provider Eleanor raised $22.23 million for its value-based care platform.