Removes a phrase that let States end Medicaid coverage solely because a person is an inmate and allows States only to suspend coverage during incarceration. It also funds a $50 million State planning-grant program to help States prepare to provide Medicaid-covered medical and behavioral health care to people made newly eligible under the change, with application requirements, planning activities, stakeholder consultation, and a requirement that awards be geographically diverse. A conforming change to prevent termination of eligibility takes effect January 2, 2026.