To provide for an emergency increase in Federal funding to State Medicaid programs for expenditures on home and community-based services.

This legislation gives states extra federal money to support Medicaid services that help people get care at home or in their community. For services provided in fiscal years 2026 and 2027, the federal share of costs goes up by 10 percentage points, up to a 95% maximum, but only for states that apply and are approved. States must spend this money to add or improve these services, not replace their own funding, and use it by September 30, 2029.

The bill pushes states to boost pay and benefits for home health workers and direct support professionals, reduce waiting lists, and partner with local groups. Funds can cover things like paid sick and family leave, hazard and overtime pay, job stability, PPE and other emergency supplies, worker travel, training, recruiting new workers, support for family caregivers (including respite care), assistive technology, interpreters, and accessible public health information. It also allows day service providers to deliver in-home services. States report results by December 31, 2029, and the federal health agency will hire an outside evaluator to review what worked and share findings publicly. Applications are deemed approved once the federal agency certifies they are complete .

Key points

• Who is affected: People on Medicaid who need help at home; home health workers and direct support professionals; family caregivers; state Medicaid programs.
• What changes: A temporary 10-point increase in federal funding for home- and community-based services; funds must supplement, not replace, state dollars; required use on worker pay/benefits, training, safety, caregiver support, and cutting waiting lists; state reporting and a national evaluation with public results .
• When: Extra funding applies to services in fiscal years 2026 and 2027; money must be used by September 30, 2029; state reports due December 31, 2029 .