To provide for an emergency increase in Federal funding to State Medicaid programs for expenditures on home and community-based services.
Summary
H.R. 4029 aims to provide an emergency increase in Federal funding to State Medicaid programs for expenditures on home and community-based services (HCBS). The bill introduces a temporary increase in the Federal Medical Assistance Percentage (FMAP) by 10 percentage points for states with approved HCBS programs for fiscal years 2026 and 2027, capped at 95%. States must apply and meet specific conditions, including outlining planned activities and ensuring funds supplement existing state efforts and increase reimbursement rates for HCBS workers.
Expected Effects
If enacted, this bill would increase federal funding for home and community-based services provided through Medicaid. This would allow states to expand these services, improve worker compensation, and reduce waiting lists. The increased FMAP would be available for fiscal years 2026 and 2027, requiring states to expend the funds by September 30, 2029.
Potential Benefits
- Increased access to home and community-based services for eligible individuals.
- Improved compensation and working conditions for home health workers and direct support professionals.
- Reduction in waiting lists for HCBS programs.
- Enhanced support for family care providers.
- Potential for innovation and expansion of HCBS delivery models.
Potential Disadvantages
- Increased federal spending on Medicaid, potentially contributing to the national debt.
- Potential administrative burden for states in applying for and managing the increased funding.
- Risk that states may not effectively utilize the additional funding to achieve desired outcomes.
- Possible displacement of state funding for HCBS if not properly monitored.
- The temporary nature of the FMAP increase may create uncertainty for long-term planning.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the General Welfare Clause (Article I, Section 8, Clause 1) of the Constitution, which allows Congress to collect taxes and provide for the general welfare of the United States. By increasing funding for home and community-based services, the bill aims to improve the health and well-being of eligible individuals, which falls under the umbrella of general welfare. The Tenth Amendment reserves powers not delegated to the federal government to the states, but this bill operates within the framework of a cooperative federalism model through Medicaid, where both federal and state governments share responsibilities.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).