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Harm Reduction Funding

SAMHSA Said Fentanyl Test Strips Save Lives. Nine Months Later It Banned Federal Funding for Them.

Summary

A July 2025 SAMHSA letter listed fentanyl and xylazine test strips among the supplies its grants could fund as 'life-saving overdose prevention.' An April 2026 letter reversed that, barring federal money from buying them at all — even as CDC's own data show overdose deaths have fallen to a six-year low, and a peer-reviewed model projects up to 39,600 additional deaths over five years if federal support for syringe programs collapses.

By Locusta · July 10, 2026

On July 29, 2025, the Substance Abuse and Mental Health Services Administration told every state and grantee, in a Dear Colleague letter, exactly what its money could still buy under a new executive order narrowing "harm reduction" funding. Under "Life-Saving Overdose Prevention and Response Services," the letter listed naloxone, medication lock boxes — and "substance test kits, including fentanyl test strips and xylazine test strips." SAMHSA was explicit that the strips, which let a person check a drug supply for fentanyl before using it, belonged in the same life-saving category as the overdose-reversal drug itself.

Nine months later, the same office reversed itself. An April 24, 2026 letter moved fentanyl and xylazine test strips — along with newly named medetomidine strips — into the list of supplies "NOT supported with SAMHSA funding," alongside syringes and safer-smoking pipes. Naloxone stayed funded. The strip a user reads before injecting did not.

FY2026 substance use block grant
$1.9B
enacted Feb. 3, 2026
Projected excess deaths, 5 yrs
39,600
worst-case: 80% federal SSP funding cut vs 5,400 at an 11% cut
U.S. overdose deaths, 12 mo.
70,207
down from 81,313 a year earlier vs 12 mo. ending Dec. 2024

The reversal, in the agency's own words

Both letters trace to the same order: Executive Order 14321, "Ending Crime and Disorder on America's Streets," signed July 24, 2025, which directed to "ensure that discretionary grants issued by [SAMHSA] for substance use disorder prevention, treatment, and recovery fund evidence-based programs and do not fund programs that fail to achieve adequate outcomes, including so-called 'harm reduction' ... efforts that only facilitate illegal drug use." The July 2025 letter interpreted that order narrowly: fentanyl test strips survived because SAMHSA classified them as overdose prevention, not "harm reduction" in the sense the order targeted. The April 2026 letter, signed by the same office under a new principal deputy assistant secretary, redrew that line — this time putting test strips on the banned side, alongside sterile water and "overdose hotlines" that let someone stay on the phone while using. A footnote in the new letter carves out an exception: the ban on federal money buying test strips does not apply to "law enforcement, emergency medical services, public health officials, or healthcare professionals" using them in their own work. It applies to people who use drugs testing their own supply.

U.S. drug overdose deaths, 12 months ending December
National count, adjusted for reporting lag; 2025 remains provisional
12 mo. ending Dec. 2021
108,553
12 mo. ending Dec. 2022
110,393
12 mo. ending Dec. 2023
107,966
12 mo. ending Dec. 2024
81,313
12 mo. ending Dec. 2025
70,207
Source: CDC/NCHS, VSRR Provisional Drug Overdose Death Counts (dataset xkb8-kh2a)
View data as table
Overdose deaths by year
12 mo. ending Dec. 2021108,553
12 mo. ending Dec. 2022110,393peak
12 mo. ending Dec. 2023107,966
12 mo. ending Dec. 202481,313
12 mo. ending Dec. 202570,207provisional; CDC's rounded published figure is 69,973

The backdrop makes the timing sharper. CDC's own live data put U.S. overdose deaths at a model-adjusted 70,207 for the 12 months ending December 2025 — down from 81,313 a year earlier, and the third straight annual decline after a 2022 peak above 110,000. CDC's official May 2026 release rounded the final count to 69,973, a level the agency hadn't seen since before the pandemic. The July 2025 SAMHSA letter itself cited "'s latest provisional data" — a 26% year-over-year decline as of February 2025 — as the backdrop for its own harm-reduction policy, while still allowing test strips as one of the tools driving that decline. The April 2026 letter doesn't dispute the trend. It just moves the strip off the funded list anyway.

What a real funding cut would cost

The executive order's broader target — federal support for syringe service programs (SSPs), which combine sterile syringes with naloxone, wound care, and referrals to treatment — is the subject of a June 2026 study in JAMA Network Open. Researchers at the University of Colorado Anschutz Medical Campus built a microsimulation of the roughly 3,694,500 people who inject drugs nationally and modeled two funding-cut scenarios, drawn from published estimates of how much SSP money nationally traces to federal sources — 11% at the low end, 80% at the high end, since federal block-grant dollars often reach SSPs indirectly through state or local health departments. Under the study's worst case — an 80% sustained cut in federal support — the model projects 39,600 additional deaths over five years among people who inject drugs, 15,600 of them from overdose. Even the conservative 11% scenario projects 5,400 excess deaths, 2,200 from overdose.

Projected excess deaths over 5 years, by federal SSP funding cut
Modeled scenarios, Aug. 2025–Aug. 2030, baseline population 3,694,500 PWID
11% funding cut — all-cause
5,400
11% funding cut — overdose
2,200
80% funding cut — all-cause
39,600
80% funding cut — overdose
15,600
Source: Fetters et al., JAMA Network Open 2026;9(6):e2619402
View data as table
Projected excess deaths by scenario
11% funding cut, all-cause deaths5,400over 5 years, +0.7%
11% funding cut, overdose deaths2,200over 5 years, +1.0%
80% funding cut, all-cause deaths39,600over 5 years, +5.0%
80% funding cut, overdose deaths15,600over 5 years, +6.9%

Federal money is not, today, the majority of what keeps most syringe programs running. In the most recent national census — 311 of 456 known U.S. SSPs surveyed in 2022, a 68% response rate — state health departments were the most commonly cited funding source, reported by 63% of programs, ahead of individual donations (42%) and private foundations (29%). The federal government, reported directly, was the least common source: 11%. The median SSP ran on a $100,000 annual budget — an amount the same study found covered as little as 5% of the minimum benchmark for rural counties and 46% for urban ones. That 11% floor is exactly the JAMA study's conservative scenario; the 80% ceiling belongs to programs, mostly rural and state-run, where federal block grants are effectively the whole budget once relabeled as "state" funding on a survey form.

Where syringe service programs report getting their money
Share of surveyed SSPs citing each funding source, 2022 (not mutually exclusive)
State health department
63%
Individual donations
42%
Private foundations
29%
City/county health department
25%
Federal government
11%
Source: Facente et al., American Journal of Public Health 2024;114(4):412-422
View data as table
Funding sources by share of programs
State health department63%share of SSPs reporting this source
Individual donations42%share of SSPs reporting this source
Private foundations29%share of SSPs reporting this source
City/county health department25%share of SSPs reporting this source
Federal government11%share of SSPs reporting this source directly

The money itself hasn't been cut — yet

The dollars that fund state substance-use systems, including the block grants SSPs draw on, moved through Congress largely intact. The Consolidated Appropriations Act, 2026, approved by Congress February 3, 2026, provides $1.9 billion for the Substance Use Prevention, Treatment, and Recovery Services Block Grant — the main federal channel for state substance-use programs — alongside $1.6 billion for State Opioid Response grants and $1 billion for the Mental Health Block Grant. In January 2026, SAMHSA briefly moved to terminate roughly $2 billion in discretionary grants outright, then reversed the terminations within about 24 hours after bipartisan pushback. The money is still flowing. What changed is what grantees are allowed to buy with it — and the list of banned supplies got longer, not shorter, in the nine months after SAMHSA itself called the strips life-saving.

The takeaway

  • SAMHSA reversed itself on fentanyl test strips, not naloxone. The same executive order produced two letters nine months apart, one funding strips as overdose prevention and the next banning them as "harm reduction" — while leaving naloxone funded in both.
  • The reversal lands as the trend it's supposed to protect is improving. 's own provisional count shows overdose deaths falling for a third straight year, to about 70,000 — a level last seen before the pandemic — even as the newest guidance narrows the tools grantees can pay for.
  • A modeled worst case puts real numbers on what's actually at stake. An independent, peer-reviewed model projects up to 39,600 additional deaths over five years if federal syringe-program funding — not yet cut in dollar terms, but now restricted in what it can buy — falls by 80%.

Figures span federal fiscal and calendar years from 2021 through 2026 and are cited to their original reporting period; the JAMA Network Open mortality projections are model estimates, not observed outcomes.

Sources

  • SAMHSA, Dear Colleague letter on Executive Order 14321 (July 29, 2025) — the original list of harm-reduction supplies SAMHSA funding could and could not support, including fentanyl and xylazine test strips as allowable "life-saving overdose prevention" supplies. samhsa.gov
  • SAMHSA, updated Dear Colleague letter on harm-reduction funding guidance (April 24, 2026) — the reversal moving fentanyl, xylazine, and medetomidine test strips onto the list of supplies federal funding cannot support, with the law-enforcement/clinical-use exception. samhsa.gov
  • Executive Office of the President, Executive Order 14321, "Ending Crime and Disorder on America's Streets," 90 Fed. Reg. 35813 (July 29, 2025) — Section 4(a)(i), the underlying directive to SAMHSA on discretionary-grant funding. federalregister.gov
  • /NCHS, VSRR Provisional Drug Overdose Death Counts (dataset xkb8-kh2a) — national 12-month-ending overdose death counts and reporting-lag-adjusted predicted values, 2015–2026, queried directly via 's Socrata open-data API. data.cdc.gov
  • /NCHS, "U.S. Overdose Deaths Decrease for Third Consecutive Year in 2025" (May 13, 2026) — the official, rounded 69,973-death 2025 estimate and the third-consecutive-year framing. cdc.gov
  • Fetters KB, Padmanabhan P, Yamkovoy K, et al., "Projected Outcomes of Reducing Federal Funding for Syringe Service Programs via Executive Order," JAMA Network Open 2026;9(6):e2619402 — the microsimulation projecting 5,400–39,600 excess deaths over five years under 11%–80% federal SSP funding-cut scenarios. jamanetwork.com
  • Facente SN, Humphrey JL, Akiba C, et al., "Funding and Delivery of Syringe Services Programs in the United States, 2022," American Journal of Public Health 2024;114(4):412-422 — the national SSP census (311 of 456 programs), funding-source breakdown, and median program budget. pmc.ncbi.nlm.nih.gov
  • U.S. Senate Committee on Appropriations, "Congress Approves 2026 Labor, , Education Appropriations Bill" (Feb. 3, 2026) — the enacted $1.9 billion Substance Use Prevention, Treatment, and Recovery Services Block Grant and related FY2026 substance-use appropriations. appropriations.senate.gov
  • Roll Call, "White House reverses $2 billion cut to mental health, addiction grants" (Jan. 14, 2026) — the ~2,000 SAMHSA grantees sent termination letters the night of Jan. 13–14, 2026, and the reversal confirmed by administration officials the following evening. rollcall.com
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