Sponsors (3)
The bill provides targeted, short-term federal funding to expand HCBS access, boost worker pay, and support caregivers — improving care and workforce capacity — but increases federal spending and risks uneven, temporary gains and added administrative burdens unless States sustain and equitably implement the changes.
Medicaid enrollees — especially seniors and people with disabilities — will see expanded access to home- and community-based services (HCBS) during FY2026–FY2027 due to increased federal matching funds.
Home health workers and direct support professionals are likely to receive higher reimbursement, pay, and benefits because States must use funds to raise rates and increase worker compensation.
States receive funding to recruit, train, and equip HCBS providers, which can expand workforce capacity, reduce provider shortages, and shorten waiting lists for services.
Implementation could be uneven across States — some States may not apply, may cap compensation increases, or may improperly shift existing State funds — leaving beneficiaries and workers in nonparticipating or noncompliant States behind.
The funding boost is temporary (two fiscal years), so improvements in access, workforce pay, and supports could lapse after FY2027 unless States sustain funding, risking instability for beneficiaries and workers.
Taxpayers face higher federal spending from the increased FMAP, with potential budgetary costs spread across the federal budget.
Based on analysis of 2 sections of legislative text.
Temporarily raises the Medicaid FMAP by 10 percentage points (capped at 95%) for qualifying HCBS in FY2026–FY2027, subject to state application and conditions.
Introduced June 17, 2025 by Debbie Dingell · Last progress June 17, 2025
Provides a temporary 10 percentage-point boost to a State's Medicaid matching rate for qualifying home- and community-based services (HCBS) in fiscal years 2026 and 2027, with the increase capped so no State’s FMAP exceeds 95%. States must apply and be approved as an "HCBS program State," commit to specific uses of the additional federal funds (including raising HCBS reimbursement rates to support workforce recruitment and retention), and meet oversight, data, and spending-deadline requirements.