The South Dakota opioid settlement grants program is taking a major step forward. The South Dakota Department of Social Services (DSS) recently introduced a three-tier grant system to support prevention, treatment, and long-term innovation. This new structure uses opioid settlement funds to make measurable, lasting improvements in behavioral health care.
Expanding the Use of Settlement Funds
South Dakota expects to receive $99 million in opioid settlement funds by 2038. So far, the state has collected about $23 million, and nearly $11.7 million remains uncommitted. The new program is designed to make sure these dollars reach communities that need them most.
According to DSS Secretary Matt Althoff, this change will help the state move past short-term projects and focus on sustainable programs that strengthen behavioral health systems, expand workforce capacity, and increase access to care.
Three Tiers of Grant Funding
The program offers three types of grants that match the size and scope of proposed projects:
- Tier One: Small Grants (up to $5,000) – Support short-term prevention projects for schools, faith-based groups, and local coalitions.
- Tier Two: Mid-Size Grants (up to $50,000) – Fund year-long initiatives for prevention or treatment expansion.
- Tier Three: Transformative Grants (up to $2 million) – Support large regional efforts such as behavioral health workforce development or infrastructure projects.
Each level encourages innovation, collaboration, and measurable impact.
Building Long-Term Sustainability
To ensure that progress lasts, the Department will reserve about $12 million (25% of each disbursement) in a trust fund to maintain the state’s opioid abatement plan if federal funding ends. This move creates long-term stability while helping South Dakota meet local needs today.
The plan also follows national trends, as more states choose to invest settlement funds in prevention, recovery, and workforce development.
A Call to Action for Healthcare and Community Organizations
Millions of dollars are still available, and organizations across South Dakota can apply now. Health centers, behavioral health agencies, and community nonprofits have a chance to create programs that align with the state’s vision for prevention and recovery.
Burrows Consulting helps healthcare organizations apply for opioid settlement grants and other opioid funding opportunities nationwide. Our team guides applicants through program design, grant readiness, and proposal development to ensure compliance and strong outcomes.
If your organization is ready to make an impact in opioid prevention or treatment, contact Burrows Consulting today.
You can also watch our Opioid Funding Webinar to learn about our experience with these opportunities. The deadline is rolling, apply here!
References
Huber, Makenzie. 2025. “State Revamps Use of Opioid Settlement Money by Offering ‘Transformative’ Grants Up to $2 Million.” News from the States, October 25, 2025. https://www.newsfromthestates.com/article/state-revamps-use-opioid-settlement-money-offering-transformative-grants-2-million
South Dakota Department of Social Services. 2025. Press Release: South Dakota Launches Three-Tier Grant System for Opioid Treatment and Prevention. Pierre, SD: South Dakota DSS.
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