Where do these monies live?

The Iowa Abatement Fund holds 50% of the state’s opioid settlement funds.[1]

What can this share be spent on?

With limited exceptions,[2] this share must be spent on the uses described in the national settlement agreements’ (non-exhaustive) [3] — which includes prevention, harm reduction, treatment, recovery, and other strategies. Additionally, at least 75% of this share must be spent on Exhibit E Schedule A’s “core strategies.”[4]

State law specifically provides that Iowa Abatement Fund monies may be used to support the opioid antagonist medication fund,[5] which funds the purchase, maintenance, and replacement of opioid antagonist medications for first responders.[6]

Who ultimately decides how to spend this share (and how)?

State legislature decides. The ultimately decides specific expenditures for this share.[7]

Are supplantation uses prohibited for this share?

No, supplantation is not prohibited. Like most states, Iowa does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 50% state share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

No (neither public nor intrastate reporting required). Opioid settlement expenditures are not officially published in a centralized location for this share.

Visit OpioidSettlementTracker.com’s for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Decisionmakers for both the state and local shares have been slow to spend: lawmakers have struggled for years to pass plans to spend the 50% state share,[8] and much of the 50% local share remained unspent in fiscal year 2023 as well.[9]

Citations

1. Iowa Opioid Allocation Memorandum of Understanding, Sec. (“50% to the Iowa Abatement Fund”); Iowa Code Sec. 12.51(1) (“An opioid settlement fund is created in the office of the treasurer of state. … The state portion of any moneys paid to the state as a result of a national settlement of litigation with entities that manufactured, marketed, sold, distributed, dispensed, or promoted opioids, made in connection with claims arising from the manufacturing, marketing, selling, distributing, dispensing, or promoting of opioids, shall be deposited in the fund. This subsection does not apply to such moneys paid to the state that are earmarked for or otherwise required to be transferred or distributed to counties, cities, or other local governmental entities”). ↑

2. Iowa Opioid Allocation Memorandum of Understanding, Sec. (“The Parties may use up to 2.5% of the Iowa Abatement Share and the LG Abatement Share for administrative costs for Opioid Related Expenditures”). ↑

3. Iowa Opioid Allocation Memorandum of Understanding, Secs. (defining “Opioid Related Expenditure” to mean the national settlement agreements’ Exhibit E),

Here are the entities that ultimately decide how each of Iowa’s opioid settlement shares are spent:

• 50% state share: Iowa state legislature

• 50% local share: decisionmakers for counties (and potentially cities)

Where do these monies live?

This share is distributed directly to Iowa’s counties according to Exhibit 2,[1] and each are required to set up separate funds to hold their opioid settlement proceeds separate from other local monies.[2]

Counties may agree to sub-allocate their funds to their cities or to the state’s Iowa Abatement Fund, provided that sub-allocated amounts are also spent on opioid-related expenditures.[3] Cities and counties may also combine their amounts.[4]

What can this share be spent on?

Excepting administrative costs and attorneys’ fees,[5] this share must be spent on the uses described in the national settlement agreement’s (non-exhaustive) ,[6] which includes prevention, harm reduction, treatment, recovery, and other strategies. Additionally, at least 75% spent on Exhibit E Schedule A’s “core strategies.”[7] Localities may not use monies from this share to reimburse costs incurred prior to the settlements.[8]

Who ultimately decides how to spend this share (and how)?

Localities decide autonomously (but must report expenditures and are subject to audit). Decisionmakers for Iowa’s local governments will ultimately decide for themselves how to spend their monies on Exhibit E uses.[9] Each local fund is subject to audit.[10]

Are supplantation uses prohibited for this share?

No, supplantation is not prohibited. Like most states, Iowa does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 50% local share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Eventually (public reporting required). Localities that receive settlement funds from the local share “must prepare and file a public annual report describing [its settlement] expenditures.”[11] As of publication,[12] these annual reports have not yet been made publicly available, either on the Iowa Attorney General’s website or otherwise.

Visit OpioidSettlementTracker.com’s for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Iowa’s allows localities to securitize their share of opioid settlement funds.[13] This means that a locality may choose to sell its right to future settlement payments in exchange for a smaller sum provided up front.

Citations

1. Iowa Opioid Allocation Memorandum of Understanding, Secs. (defining “Local Government” to mean “all Iowa Counties (regardless of population) and cities, villages, and towns located within the geographic boundaries of the State of Iowa with a population exceeding 10,000”), (defining “Participating Local Government” to mean “any Local Government that agrees to be bound by a Settlement by Participation Agreement necessary to effectuate that Settlement”), (“50% to Participating Local Governments … (‘LG Abatement Share’)”), (“The LG Abatement Share shall be distributed in direct payments to the Counties that are Participating Local Governments”). County allocations for some of the settlements may be found . ↑

2. Iowa Opioid Allocation Memorandum of Understanding, Sec. (“Every Participating Local Government that receives a Direct Distribution Amount shall create a separate fund on its financial books and records that is designated for the receipt and expenditure of the entity’s Direct Distribution Amount, called the ‘LG Abatement Fund’”). ↑