The American Rescue Plan had delivered about $37 billion to all 50 states for Medicaid home and community-based services, the White House said on Dec. 12, 2023, citing new data from the Centers for Medicare & Medicaid Services (CMS). Disability Scoop reported that the law was originally expected to send about $12.7 billion to states for these services.
Where the money went
According to the White House fact sheet, states were investing more than $25 billion of the total to help providers recruit and retain their workforce, raise pay, improve benefits and expand career opportunities.
The same day, CMS released guidance on how states could use worker registries to help people find qualified care workers and help workers find clients. The White House called the guidance a key deliverable from President Biden's April 2023 executive order on care.
CMS had given states until March 31, 2025, to use the money, according to Disability Scoop.
Why this mattered for providers and DSPs
Many raises, bonuses and sign-on incentives for DSPs between 2021 and 2024 were paid with this temporary money. As the spending deadline approached, providers pressed states to build the increases into permanent Medicaid rates so paychecks would not drop when the funds ended.