Sponsors (2)
Introduced September 8, 2025 by Kelly Morrison · Last progress September 8, 2025
The bill invests modest federal funds and state demonstrations to expand access to and quality of freestanding birth center care for Medicaid beneficiaries and underserved communities, trading limited scale and added fiscal/administrative costs for targeted improvements in maternity care access and system capacity.
Pregnant people — especially Medicaid beneficiaries, rural and underserved communities — gain expanded access to freestanding birth center care through start-up/expansion grants and Medicaid demonstration/payment support.
Federal financial and technical assistance (start-up grants, accreditation/licensure support, planning grants, and TA) lowers barriers and stimulates local investment in birth center infrastructure and operations.
Targeting areas with workforce shortages and requiring demonstration data/quality measures may improve maternal and newborn outcomes and reduce strain on local maternity systems.
Authorized funding is small ($5M total) and few grants will be awarded each year, so many communities and pregnant people will not benefit and the program's reach is limited.
Expanding Medicaid-covered birth center services and demonstrations increases federal and state spending, creating fiscal pressure and higher taxpayer costs.
Federal grants likely will not cover full start-up, accreditation, or long-term operating costs; centers and localities must provide additional funding and may face sustainability challenges after grants end.
Based on analysis of 3 sections of legislative text.
Creates federal grants to start/expand freestanding birth centers and a Medicaid demonstration testing prospective payment models to expand birth-center care for low-risk Medicaid pregnant women.
Creates a federal grant program to help freestanding birth centers start up or expand and directs HHS to run a Medicaid demonstration testing prospective payment models to increase access to birth-center care for low-risk pregnant women on Medicaid. The grant program awards $300,000–$500,000 to eligible centers (up to 15 per year) for FY2026–FY2030, and the Medicaid demonstration includes planning grants, state applications, data collection, and an evaluation with a final report to Congress. Targets funding and technical work toward centers in maternity-care shortage areas and those with poor maternity outcomes, requires accreditation (or seeking accreditation) for grantees, and sets deadlines for HHS actions (guidance/RFP within 1 year; planning grants to up to six states within 18 months). The bill authorizes $5 million per fiscal year for FY2026–FY2030 to carry out the grant program and creates a structured testing and reporting process for new Medicaid payment approaches for freestanding birth centers.