CMS Releases Updated Spending Overview for American Rescue Plan Act Funds

The Centers for Medicare & Medicaid Services (CMS) recently released an updated national overview in addition to state-specific summaries detailing the spending of American Rescue Plan Act (ARPA) funds as of December 31, 2023. This update provides key insights into how states are utilizing these federal resources to enhance, expand, and strengthen home and community-based services (HCBS) under Medicaid.

To date, states have collectively spent approximately $18.8 billion in both state and federal funds on various activities aimed at improving HCBS. This spending represents an average of 51% of each state’s total planned expenditures. However, this figure is likely an underestimate due to delays in state reporting on actual expenditures.

The top five areas where ARPA funds are being allocated include Workforce Recruitment and Retention, Workforce Training, Quality Improvement Activities, Reducing or Eliminating HCBS Waiting Lists, and Developing Cross-System Partnerships. As ARPA dollars dry up, the need for continued funding remains consistent for HCBS services. One solution is the HCBS Relief Act, which would provide a 10 point increased in the Federal Medical Assistance Percentage (FMAP) for home and community-based services during 2024 and 2025, enabling states and providers to strengthen the direct support workforce and ensure better access to I/DD services.  ANCOR encourages you to reach out to your representatives about the HCBS Relief Act today!