LANSING, Mich. (Michigan News Source) — Michigan is bracing for a $93 million cut to substance abuse programs this year, after a drop in federal funding has left a nearly one-third gap in the state’s drug treatment budget.

The funding loss, confirmed by the Michigan Department of Health and Human Services, affects programs related to drug prevention, treatment, and recovery efforts across the state. State officials say they are now evaluating how to fill the shortfall using opioid settlement funds. 

MORE NEWS: Immediate Relief for Families? Detroit to Spend $14M of COVID Money on Sports Dome

“We’re going to have to make tough decisions on where and how to prioritize resources,” Cara Poland, chair of the Michigan Opioid Advisory Commission, said.

The missing federal dollars represent 31% of the $300 million Michigan had budgeted this year for substance use disorder programs, as reported by Bridge Michigan.

Currently, the state is considering using part of the $1.6 billion it is receiving from national opioid settlements to cover the loss. That funding is intended to expand opioid-related services over 18 years and is split evenly between state and local governments. In addition, Michigan has roughly $250 million in settlement funds on hand.

State Attorney General Dana Nessel’s office issued a statement calling the federal cuts disruptive: “Unexpected federal funding cuts, threats of grant terminations, and even unlawful cuts eventually reversed by court orders have upended many organizations and public service functions across our state.”

The federal belt-tightening is not without context. The funding drop follows a $1 billion cut to the Substance Abuse and Mental Health Services Administration (SAMHSA), as House Republicans push to scale back post-COVID spending. With debt and interest costs climbing, addiction programs are now competing with tighter federal priorities.