Room and Board Residential Substance Use Disorder Opioid Settlement Funds

Overview

The Division of Care and Treatment Services is seeking applications from Tribal nations and counties for funding to cover room and board costs for Medicaid members with an opioid use disorder or at risk for an opioid overdose who are in residential substance use disorder treatment programs.

Wisconsin Medicaid has offered a residential substance use disorder treatment benefit since February 2021. This benefit provides treatment for youth and adults to promote recovery from substance use disorder and reduce the incidence and duration of institutional care Medicaid members might otherwise need.

Residential treatment services must be provided by agencies or facilities certified under Wis. Admin. Code ch. DHS 75, subch. V. Services may include assessment and treatment planning, individual and group and family counseling, psychoeducation, medication management, nursing services, case management, peer support services, recovery coaching, and drug testing to monitor and reinforce individual progress. Federal law prohibits Medicaid from reimbursing for the costs of room and board.

Covering the costs of room and board has been identified as a barrier to residential substance use disorder treatment for many Medicaid members. To make this benefit more accessible, DHS is using part of Wisconsin’s share of opioid settlement funds to provide Tribal nations and counties funding in 2027 to cover the room and board costs for individuals with an opioid use disorder or at risk for an opioid overdose.

Individuals supported by this funding can be seeking services for a current opioid use disorder diagnosis or for another substance use disorder while having a history of opioid use disorder. Due to the unpredictability of today's drug supply and the increased risk of overdose, people with a stimulant use disorder who have been exposed to opioids (demonstrated through a urine screen or surviving an overdose) can be supported with this funding.

Awarded applicants may use this funding to support members/residents of their Tribal nation or county and/or non-member/residents.

Eligible applicants

• Federally recognized Tribal nation that shares boundaries with Wisconsin
• Wisconsin county agencies

All applicants must currently contract with or plan to contract with a residential substance use disorder treatment program certified under Wis. Admin. Code ch. DHS 75 that is a Medicaid-enrolled provider.

Eligibility requirements are mandatory as of the date the applicant applies.

Application deadline

October 9, 2026, at 11:59 p.m.

Estimated number of awards

83 (one for each federally recognized Tribal nation that shares boundaries with Wisconsin and Wisconsin county)

Estimated award amount(s)

Each Tribal nation and county has been notified of the amount of funding they are eligible to receive under this funding opportunity.

Total funding available

$3,500,000

Anticipated length of funding opportunity

One year

Anticipated contract dates

January 1, 2027, through December 31, 2027

Match requirement

None

Funding source

Opioid settlement funds

Award/denial notification timeline

December 4, 2026 (estimated)

Reporting requirements

Recipients of this funding are required to follow all reporting requirements defined by DHS, including:

• Performance reporting completed with due dates:
  • The first report will cover January 1 through March 31. It is due April 30, 2027.
  • The second report will cover April 1 through June 30. It is due July 31, 2027.
  • The third report will cover July 1 through September 30. It is due October 31, 2027.
  • The final report will cover October 1 through December 31. It is due January 31, 2028.
• Expense reporting must be submitted monthly through GEARS.

Application submission

Applications are due by 11:59 p.m. October 9, 2026.

If your agency was not notified of how to apply for this funding, email DHSWEBMAILDCTS@dhs.wisconsin.gov for instructions.

By submitting an application, the applicant acknowledges the Grant Funding Opportunities: Definitions and Legal Requirements are part of this funding opportunity.