BABIES Act

This bill expands access to freestanding birth centers and works to improve birth outcomes, especially in places with maternity care shortages. It funds upgrades and growth of birth centers and sets up a test program to try better ways for Medicaid to pay for care for low‑risk pregnancies .

From 2026 to 2030, the federal government could give grants to up to 15 birth centers each year ($300,000–$500,000 each) to renovate or build facilities, buy equipment, and complete accreditation and state licensing. Priority goes to centers serving areas with maternity care shortages or worse outcomes. The bill authorizes $5 million for these grants over that period . It also creates a multi‑state test of a new payment system for birth center care under Medicaid. Within one year, the government must publish participation rules; within 18 months, up to six states get planning grants; within two years, selected states begin a four‑year test. The payment is designed to cover the full care journey—from pregnancy confirmation through postpartum—and the newborn’s first 28 days, with separate payments for mom and baby, support for hospital transfers when needed, and coverage for supplies like nitrous oxide and hydrotherapy. Yearly reports will track transfer rates, C‑section and preterm birth rates, NICU use, and costs, and advise whether to continue or change the program. Funding includes $3 million in 2027 and $6 million each year from 2028–2031 for the test .

• Who is affected:
  • Pregnant people with low‑risk pregnancies on Medicaid, freestanding birth centers (including those seeking accreditation), and communities in maternity care deserts or with poor outcomes .
• What changes:
  • Grants help centers build, upgrade equipment, and complete accreditation/licensing; the Medicaid test covers care from pregnancy through postpartum and the newborn’s first 28 days, with separate payments for mom and baby. Centers must meet safety standards, have hospital transfer plans and physician consultation, and collect quality data .
• When:
  • Grants run 2026–2030; participation rules within 1 year; planning grants within 18 months; state tests start within 2 years and run 4 years; demonstration funding runs 2027–2031 .