S.2076 - HCBS Relief Act of 2025 (119th Congress)
Summary
The HCBS Relief Act of 2025 (S.2076) proposes an emergency increase in federal funding to state Medicaid programs for home and community-based services (HCBS). This would be achieved by increasing the Federal Medical Assistance Percentage (FMAP) by 10 percentage points for states with approved HCBS programs during fiscal years 2026 and 2027, capped at a maximum of 95%. The bill outlines specific activities states must implement to improve HCBS delivery, including increasing rates for home health agencies and direct support professionals, providing paid leave and hazard pay, and addressing waiting lists for services.
Expected Effects
If enacted, the bill would increase federal funding for HCBS, potentially improving access to and quality of these services for eligible individuals. States would be required to use the additional funds to supplement existing programs and increase reimbursement rates to support workforce recruitment and retention. The Act also mandates reporting requirements and HHS evaluation to assess the impact of the increased funding.
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 through state-level activities.
Potential Disadvantages
- Increased federal spending and potential strain on the federal budget.
- Potential for states to mismanage or misuse the additional funds, despite reporting requirements.
- The temporary nature of the FMAP increase (fiscal years 2026 and 2027) may create instability in long-term planning.
- Possible administrative burden for states in applying for and complying with the requirements of the Act.
- The 95% FMAP cap may limit the benefit for some states.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the General Welfare Clause (Article I, Section 8) of the Constitution, which grants Congress the power to provide for the general welfare of the United States through taxation and spending. The proposed increase in Medicaid funding for HCBS aims to improve healthcare access and support vulnerable populations, potentially falling under the umbrella of promoting the general welfare. However, the extent of federal intervention in state healthcare programs could raise questions about federalism and the balance of power between the federal government and the states, although Medicaid is a joint federal-state program.
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).