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HHS Extends American Rescue Plan Spending Deadline by a Year

August 30, 2022

September 2022

States will now have an additional year to spend funds from the American Rescue Plan (ARP) on home- and community-based services for Medicaid recipients, as announced by the U.S. Department of Health and Human Services through the Centers for Medicare & Medicaid Services (CMS).

Following guidance from the Biden administration, states will be permitted to spend the funds through March 31, 2025. The original spending schedule was April 1, 2021, through March 31, 2024.

The extension is meant to help individuals receive the care they need in preferred settings, bolster the health care workforce, and reduce institutional care reliance.

“Thanks to the [ARP], these additional funds will help people with Medicaid to live and thrive in the setting of their choice,” said CMS Administrator Chiquita Brooks-LaSure.

Under the ARP, each state temporarily receives a 10% increase to the federal medical assistance percentage. As the funding is state-by-state, local governments have the option to tailor spending to their communities’ individual needs.

In addition to strengthening community services and accessibility, some states have also used the funding to supplement service workers’ pay.

Source: Centers for Medicare & Medicaid Services, June 3, 2022.

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