Sponsors (18)
The bill temporarily boosts federal Medicaid funding to expand HCBS and support workers and family caregivers—improving access, pay, and emergency preparedness—but increases federal costs and risks uneven, potentially unsustained state-level support and added administrative complexity.
Medicaid beneficiaries and people with disabilities will have increased access to home- and community-based services (HCBS) in FY2026–FY2027 because states get a 10-percentage-point FMAP boost they can use to expand services.
Home health workers and direct support professionals may receive higher pay and improved benefits (paid leave, hazard pay, overtime, shift differentials) when states tie Medicaid rate increases to worker compensation.
Family caregivers (including parents) of Medicaid-eligible individuals can receive financial support, respite, and supplies, reducing out-of-pocket costs and caregiving burden.
Medicaid beneficiaries and state governments risk losing services after the temporary federal boost ends if states redirect savings or fail to sustain HCBS funding despite 'supplement not supplant' rules.
Taxpayers will face higher federal Medicaid spending in FY2026–FY2027 because of the FMAP increase, raising federal expenditures.
State and local Medicaid agencies may incur extra administrative burdens (applications, reporting, oversight) that could divert staff and resources and slow implementation of expanded HCBS.
Based on analysis of 2 sections of legislative text.
Temporarily raises the Medicaid FMAP by 10 percentage points for qualifying HCBS expenditures in FY2026–FY2027 (capped at 95%), with state application and use conditions.
Provides a temporary 10-percentage-point increase to the federal Medicaid matching rate (FMAP) for qualifying home and community-based services (HCBS) expenditures in fiscal years 2026 and 2027, subject to a 95% FMAP cap. States must apply, certify planned uses and safeguards, work with community partners, and meet conditions that funds supplement—rather than replace—existing state HCBS funding and support workforce recruitment, retention, and compensation; approved applications are deemed approved once certified complete within 90 days and funds must be spent by September 30, 2029.
Introduced June 12, 2025 by Ben Ray Luján · Last progress June 12, 2025