The Department of Health and Human Services (HHS) and CMS announced that the deadline for states to use funding from the American Rescue Plan (ARP) has been extended to March 31, 2025. The ARP provided states with a temporary 10 percentage point increase in federal Medicaid funding for HCBS if they meet certain requirements. The original deadline was March 22, 2022.
The additional federal funding made available under the ARP allows those enrolled in Medicaid who need long-term services and supports to receive assistance required to reside in the setting of their choice.
States are using the funds in a variety of ways to enhance, expand, and strengthen home and community-based services. Some are using the additional funds to increase HCBS to help people with Medicaid coverage receive care outside a skilled nursing facility after a hospitalization. Others are providing recruitment and retention bonuses and increasing pay for direct support professionals and implementing new training programs and other strategies to strengthen the direct support workforce. Click here for details about how states are using the funds.