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Procurement3 min read9 sections

Grant Funding for FTS Programs

Fentanyl test strips (FTS) are among the most cost-effective tools available for overdose prevention, yet many public health agencies struggle to navigate federal and state grant funding that can support their purchase and distribution. Since April 2021, when the CDC and SAMHSA jointly announced that federal grantees could use program funds to purchase fentanyl test strips, the procurement pathway has been clear in principle but often confusing in practice. This guide is written for procurement officers, grant writers, and program managers at state and local health departments who need to understand which funding streams support FTS acquisition, how to write test strips into a grant budget, how to justify sole-source procurement for patented products, and how to meet reporting requirements once funds are awarded. Whether you are building a new harm reduction program from scratch or scaling an existing one, the funding mechanisms described here can help you secure sustainable, multi-year support for fentanyl test strip distribution at the community level.

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SAMHSA State Opioid Response (SOR) Grants

SAMHSA\\

SAMHSA authorizes FTS purchasesApr 2021

Federal grant funds can now be used for fentanyl test strips.

CDC OD2A includes FTS2023

OD2A cooperative agreements explicitly list FTS as allowable prevention supplies.

Opioid settlement funds begin flowing2023-2024

States receive billions in settlement dollars; FTS eligible in most frameworks.

Federal budget reductions begin2025

Significant cuts to addiction/overdose prevention programs.

Diversified funding becomes critical2026

Programs relying on single federal source face disruption; multi-source strategy essential.

02

HRSA Rural Communities Opioid Response Program

For rural health departments and community health organizations, HRSA\\

03

Writing FTS into a Grant Budget: Line Items and Justification

Successful grant applications require clear, well-justified budget line items for fentanyl test strips. The key is to categorize FTS under supplies or commodities (not equipment) and provide unit-level cost detail that demonstrates fiscal responsibility and programmatic alignment. A model budget line item for an immunoassay-based strip such as the Subcheck SC-1 might read: \\

04

Common Procurement Pitfalls and How to Avoid Them

Procurement remains one of the highest-risk areas in federal grant compliance, and audit findings related to procurement violations can result in disallowed costs, funding clawbacks, or loss of future grant eligibility. Understanding the most common pitfalls is essential for any procurement officer working with federal harm reduction funds. The first and most frequent mistake is failing to follow competitive bidding requirements. Federal regulations mandate that grant-funded procurement transactions provide full and open competition. Activities that restrict competition include placing unreasonable qualification requirements on vendors, requiring unnecessary experience or excessive bonding, engaging in noncompetitive pricing practices, specifying only a brand-name product without allowing \\

Grant ProgramFTS Allowable?Typical AwardCycle
CDC OD2AYes — Strategy 4$2M-$10M/yr5-year cooperative
SAMHSA SOR/SOSYes — harm reduction$10M-$50M/state2-year, renewable
HRSA RCORPYes — rural focus$1M-$2M3-year
Opioid SettlementsVaries by stateVariesOngoing
State AppropriationsWhere allocatedVariesAnnual
05

Grant Reporting Requirements for FTS Programs

Each federal grant program imposes specific reporting requirements that procurement officers and program managers must plan for from the outset. Failure to submit timely, accurate reports can jeopardize continuation funding and future grant eligibility. For SAMHSA SOR grants, reporting is conducted quarterly through the SPARS (SAMHSA Performance and Accountability Reporting System) platform. Key metrics include the quantity of fentanyl test strips purchased, the quantity distributed, the number of individuals served, and the settings in which distribution occurred. These data support SAMHSA\\

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Federal Funding Timelines and Application Cycles

Understanding federal budget cycles is critical for planning FTS procurement. The federal fiscal year runs from October 1 through September 30, and most grant programs align their award cycles accordingly. CDC OD2A operates on a five-year cooperative agreement cycle. The current cycle (OD2A-S and OD2A: LOCAL) was awarded in August-September 2023 and runs through 2028.

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Navigating the Current Political Landscape

Federal funding for harm reduction has faced periods of uncertainty, and procurement officers should be prepared for potential shifts in funding availability and program priorities. In 2025, several CDC funding streams experienced temporary disbursement delays, though funds for overdose prevention were subsequently released. The political environment around harm reduction varies across administrations, and some programs have seen their NOFOs flagged with notices that they were posted under previous administrations and may not reflect current policy priorities. Procurement officers can mitigate political risk through several strategies.

Budget Tip
At $0.20/unit, a 10,000-strip SC-1 order is $2,000. That is under most small-purchase thresholds — meaning many programs can bypass competitive bidding entirely for a meaningful pilot.
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Quick-Reference: Federal Grant Programs for FTS Procurement

The following summary provides at-a-glance details for the major federal programs that support fentanyl test strip acquisition. CDC Overdose Data to Action - States (OD2A-S): CFDA 93.136. Five-year cooperative agreement (2023-2028). Covers 49 states and D.C.

Sources & References
  1. CDC. Overdose Data to Action (OD2A). https://www.cdc.gov/overdose-prevention/php/od2a/index.html
  2. CDC. About Overdose Data to Action. https://www.cdc.gov/overdose-prevention/php/od2a/about.html
  3. CDC. OD2A Case Study: Harm Reduction. https://www.cdc.gov/overdose-prevention/php/od2a/harm-reduction.html
  4. CDC. Federal Grantees May Now Use Funds to Purchase Fentanyl Test Strips (April 2021). https://archive.cdc.gov/www_cdc_gov/media/releases/2021/p0407-Fentanyl-Test-Strips.html
  5. SAMHSA. Fentanyl and Xylazine Test Strips. https://www.samhsa.gov/substance-use/treatment/overdose-prevention/fentanyl-xylazine-test-strips
  6. SAMHSA. State Opioid Response (SOR) Grants, NOFO TI-24-008. https://www.samhsa.gov/grants/grant-announcements/ti-24-008