The Mississippi Opioid Settlement Fund Advisory Council approved monthly reimbursement for all 13 of the attorney general’s office funded grantees that requested the change during its August meeting.
Under the original model, organizations reported costs and expected to be reimbursed every three months. However, some awardees worried that schedule could negatively impact their finances or require them to take out loans. Their concerns delayed the disbursement of roughly $50 million in settlement funds, awarded earlier this year by the Mississippi Legislature following lawsuit payments from companies that contributed to the opioid crisis.
The Mississippi Administrative Office of Courts and the state Department of Mental Health also requested the shorter repayment timeframe for a portion of their grant-awarded projects.
At a July meeting, the council voted to allow applicants the option to be reimbursed monthly, and asked them to submit an explanation of the proposed change’s benefits.
Out of 28 awardees, the 13 that submitted requests said holding onto costs for three months of staff pay and vendor expenses would create significant cash flow burdens. Some organizations, including the North central Mississippi community mental health center Communicare and the Pontotoc county-based Chase House of Restoration, plan to use their funds to purchase and renovate buildings for substance use recovery programs.
“Advancing three months of contractor payments, construction costs, building materials, inspections, and other capital expenses before reimbursement is simply beyond our financial capacity,” wrote Mason Hester, founder of Chase House, in his request. He added that quarterly reporting would delay access for the individuals and families awaiting treatment.
Before passing the motion to approve the model change, Joseph Sclafani, a council member and policy adviser to Gov. Tate Reeves, raised concerns about potential fraud from nonprofit organizations without existing track records.
“It’s harder to fraud on a quarterly basis than it is on a monthly basis,” he said.
Wendy Bailey, executive director of the Department of Mental Health and co-chair of the advisory council, said her department’s monthly reimbursement process allows them to keep a close eye on how grant funds are being spent. She emphasized the importance of having an option for quicker repayments.
“The majority of our grants go to the community mental health centers, and they all serve individuals regardless of an ability to pay,” she told Mississippi Today. “So it is very important for them to be reimbursed on a monthly basis.”
Plans for the next round
Applications for the 2026 fiscal year will be available to view on Aug. 24 and go live starting Aug. 31, said Deputy Attorney General Doug Miracle, who chaired the meeting. The application will include language stating that awardees can submit financial reports on either a monthly or quarterly basis.
Applicants will have until October 5 to submit their applications, after which the third-party health consultant Steadman Group will do an initial grading of applications. The consulting group was contracted earlier this year to support the council’s grant approval process.
The advisory council will next meet on Nov. 23 and Nov. 30 to review the applications and Steadman Group’s recommendations. They will recommend applicants to the Legislature in early December, with Mississippi lawmakers making final decisions during the 2027 legislative session.
Mississippi State Health Officer Dr. Daniel Edney told Mississippi Today having outside help will make the council’s workflow smoother. He said 2025 was an intense year for the council that ran on a tight timeline to create an application process and recommend applicants for Mississippi legislators to fund. Mississippi used the opioid settlement funds specifically earmarked to combat future overdoses.
“Last year was the best we’ve ever had to push that amount of money out that quickly,” Edney said. “And, and as of today, it’s out serving the people of Mississippi and saving lives.”
Michelle Williams, chief of staff for Attorney General Lynn Fitch, was positive about the next cycle of applications.
“We had some great projects funded last year, and we are looking forward to seeing what kind of applications we get this year,” she told Mississippi Today. “There are a lot of really good people out there doing great and innovative things, and we are excited by how it’s going to impact our state.”
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