Introduced September 8, 2025 by Kelly Morrison · Last progress September 8, 2025
The bill expands and pilots access to freestanding birth center care—especially for Medicaid and underserved communities—by funding capital, accreditation, and demonstration activities, but its limited scale, modest funding, administrative burdens, and restriction to low‑risk pregnancies mean many people and long‑term staffing needs may remain unaddressed.
Medicaid-eligible low-risk pregnant people and pregnant people in underserved/rural areas will gain increased access to freestanding birth center services through grants and a targeted Medicaid demonstration.
Birth centers and small childbirth providers receive capital, accreditation, planning, and technical-assistance support (grants, planning grants, and help to achieve licensing/accreditation), improving local maternal care capacity and safety.
Funding and program criteria prioritize areas with poor maternity outcomes and maternity Health Professional Shortage Areas, directing limited federal resources toward communities with greater need.
Many pregnant people who need improved maternal-care options will remain unreached because program scale is limited by small total appropriations, annual grant caps, and demonstration enrollment limits.
Grant amounts and the program design focus on capital/accreditation but do not fund ongoing staffing or reimbursement needs, so centers may struggle to sustain expanded services long-term.
The demonstration is limited to 'low-risk' pregnancies, excluding higher-risk Medicaid beneficiaries who also need better access to maternal-care options.
Based on analysis of 3 sections of legislative text.
Creates HRSA grants for freestanding birth center start-up/expansion and a Medicaid demonstration to test prospective payment systems for birth center services.
Creates a federal grant program to help start or expand freestanding birth centers and launches a Medicaid demonstration to test new payment models for birth center services. The grant program (FY2026–FY2030) will provide $300,000–$500,000 awards to up to 15 accredited (or seeking accreditation) birth centers per year, with $5 million authorized total. The Medicaid demonstration requires HHS to publish certification criteria, guidance, and an RFP within one year, award planning grants to up to six States, and run prospective payment model tests and evaluations to expand access and improve maternal care for low‑risk pregnant women on Medicaid.