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SAMHSA Implements New Harm Reduction Restrictions in Updated Guidance

May 12, 2026

On April 24, the Substance Abuse and Mental Health Services Administration (SAMHSA) issued a Dear Colleague letter updating guidance on how federal funds may be used for substance use programs.

The letter narrows which supplies and services previously considered harm reduction activities can be supported with SAMHSA funding.

The guidance explicitly prohibits funding for fentanyl and xylazine test strips — previously allowable — as well as sterile water, saline and overdose hotlines. Naloxone distribution, overdose reversal training and certain infectious disease prevention services remain eligible. Counties rely heavily on SAMHSA block grants to fund direct behavioral health services and are assessing the operational impact of these new restrictions.

Read the full NACo policy update here.

For questions, please contact WCA Government Affairs Associate Chelsea Shanks via email or at 866.404.2700.