Michigan Invests $37.5M in Recovery Housing for Substance Use Disorder

The Michigan Department of Health is investing $37.5M in recovery housing, aiming to increase beds by 40% by 2028.
MDHHS to invest in housing for people recovering from substance use disorder

The Michigan Department of Health and Human Services is channeling a significant $37.5 million into recovery housing for substance use disorder across the state. This initiative is part of Michigan’s fiscal strategy for 2026, focusing on substance use disorder treatment and recovery services.

This substantial funding originates from national opioid lawsuit settlements, with Michigan expected to receive upwards of $1.8 billion by the year 2040.

Dr. Natasha Bagdasarian, the state’s Chief Medical Executive, emphasized the evolving nature of the crisis, stating, “Now it’s more than just opioids.” The department’s strategy encompasses four main pillars:

  • Prevention: aiming to halt the development of substance use disorder before it begins
  • Harm reduction: working to avert overdoses and other health impacts resulting from substance use disorder
  • Treatment: ensuring the availability of sufficient providers statewide to treat every Michigander in need
  • Recovery: equipping individuals in recovery with the necessary tools to maintain their recovery

Dr. Bagdasarian highlighted that housing, transportation, and employment are significant barriers to recovery, often echoed by individuals with lived experience in the field.

The goal of the MDHHS is to boost the availability of recovery housing beds by 40% in the coming years, with plans to establish 3,647 new beds by 2028.

“We know that if you are finishing treatment and you have no place to go but the streets, you have a very low chance of staying in recovery,” Bagdasarian explained.

Efforts are underway to develop infrastructure for prolonged stays, especially in underserved communities, while also listening to local needs. The department utilizes a Substance Use Vulnerability Index to identify the community areas most in need.

Dr. Bagdasarian also noted the increasing danger of drugs, affecting all demographics and age groups. She stated, “There’s a common misperception that this isn’t something that’s my problem. And I think that we’ve got to think about, number one, the overdose deaths in our community. These are all our friends, our community members, our family members.”


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