Based on analysis of 2 sections of legislative text.

• Creates a new federal Medicaid covered‑services category for services delivered in assisted living residences when state law allows and cost is no greater than institutional care.
• Requires beneficiaries to meet existing Medicaid income and resource tests and to be people who would otherwise need hospital or nursing facility care.
• Imposes a per‑capita cost test: assisted living coverage through Medicaid allowed only if estimated average Medicaid cost is no greater than institutional care.
• Adds the new assisted‑living category to the Medicaid mandatory‑benefit cross‑reference, expanding the statutory scope of medical assistance.
• Gives states until after their next legislative session (if HHS says state law changes are needed) to enact required state law before being treated as noncompliant.
• Allows LIHTC qualified allocation plans to award points to projects that reduce Medicaid long‑term services costs by using non‑institutional models.
• Both changes take effect for federal purposes on January 1, 2027 (tax credit allocations after that date).
• Does not include a direct federal appropriation; implementation would occur within existing Medicaid financing and LIHTC program structures.
• Will likely shift some long‑term care delivery from institutional settings to assisted living/non‑institutional housing when cost and state law permit.