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Supplemental Block Grant and Federal Medical Assistance Percentage Opportunities

Recent legislation provides supplemental funding to support substance use disorder services.
Supplemental Block Grant and Federal Medical Assistance Percentage Opportunities
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Overview

Recent Federal legislation provides supplemental funding to support substance use disorder services through time-limited expansions of:

  • Substance Abuse Prevention and Treatment (SAPT) Block Grant
  • Federal Medical Assistance Percentage (FMAP) share of funds for Medicaid programs

The Office of Addiction Services and Supports is working with community stakeholders to identify opportunities for these funds to best meet unmet prevention, treatment, and recovery needs for people with or at risk of substance use disorders.

SAPT Block Grant Supplemental Funds

The Substance Abuse Prevention and Treatment Block Grant or SAPT Block Grant program annually provides funds to states and territories to help plan, implement, and evaluate activities that prevent and treat substance abuse and promote public health. The SAPT Block Grant is administered by the Substance Abuse and Mental Health Services Administration (SAMHSA) and managed by OASAS in New York State. Grantees use SAPT funds for prevention, treatment, recovery support, and other supportive services.

  • In December 2020, the Coronavirus Response and Relief Supplemental Appropriations Act (Public Law 116-120) was enacted, which appropriated $1.65 billion in supplemental funding to states through the SAPT Block Grant program to assist in responding to the COVID19 pandemic. Funds must be used in accordance with current SAPT program requirements. The Act, however, encourages states to request waivers beyond current Federal regulations for SAPT Block Grants related to allowable activities, timelines or reporting requirements.
     
  • In early March 2021, OASAS received notification of award for a SAPT Block Grant supplemental amount of $104.8 million for the period March 15, 2021 to March 14, 2023. On April 5, 2021, OASAS submitted its proposed spending plan for these funds to SAMHSA, based on identified system needs, provider feedback, and federal guidance. This Plan is pending SAMHSA review and approval.
     
  • On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARPA, Public Law 117-2), which directed SAMHSA to provide $1.5 billion in additional funds to support states through the SAPT to address the effects of the COVID-19 pandemic for Americans with SUD. This funding will also allow recipients to make investments in existing prevention, treatment and recovery infrastructure; promote support for providers; and address unique local needs to deliver SUD services.
     
  • On May 17, 2021, OASAS received notification from SAMSHA on the ARPA supplemental funding in the amount of $90.5 million for the period September 1, 2021 to September 30, 2025. OASAS’ spending plan is due to SAMHSA by July 2, 2021.

State and Federal Guidance

Stakeholder Listening Sessions

OASAS held a number of listening forums with stakeholders to answer questions on the supplemental funding opportunities. Recordings of the listening sessions are available below.

listening Sessions

 

Federal Medical Assistance Percentage Rate Increase

Another source of federal relief will include opportunities for enhanced Federal Medical Assistance Percentage or FMAP of 10% for Home and Community Based Services (HCBS) and rehabilitative services beginning April 1, 2021 and ending March 31, 2022 This was authorized under Section 9817 of the American Rescue Plan Act.  CMS  issued a State Medicaid Directors letter to provide guidance on how states should implement these provisions to strengthen HCBS and rehabilitation services impacted by COVID-19.NYS is preparing its initial spending plan and narrative for submission to CMS on or before the June 21, 2021 deadline  OASAS will provide more details as they become available.