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H.R. 9940·119th Congress·Introduced Jul 23, 2026

Disability Community Act of 2026

IntroducedHealthSubstantive
View bill text
Sponsor
Rep. Tonko, Paul [D-NY-20]
Committees
Energy and Commerce Committee (primary)
Last action
Jul 23, 2026

Bottom line

The bill offers temporary enhanced federal funding to states for Medicaid expenditures related to regulatory compliance for disability services and modernizes discriminatory language in federal law.

What it actually does

This bill amends Title XIX of the Social Security Act (Medicaid) to provide a temporary increase in the Federal Medical Assistance Percentage (FMAP) to 90% for state expenditures incurred in 2027, 2028, and 2029. This enhanced federal funding specifically targets costs associated with complying with certain federal regulations for services provided in intermediate care facilities or home and community-based settings for individuals with intellectual and developmental disabilities. Additionally, the bill updates outdated terminology throughout Title XIX, replacing terms like "mentally retarded" with "individuals with intellectual and developmental disabilities."

Proponents argue

Supporters argue that this legislation provides crucial financial relief to states and service providers, enabling them to meet federal quality and operational standards for individuals with intellectual and developmental disabilities without undue fiscal strain. They contend that the bill ensures continued high-quality care for a vulnerable population while simultaneously updating federal law to reflect respectful and modern terminology.

Opponents contend

Potential opponents might express concerns about the increased federal expenditure and its impact on the national budget, particularly given the temporary nature of the FMAP increase. They might also argue that a targeted FMAP increase for specific regulations could set a precedent or that a more comprehensive review of Medicaid funding structures is needed rather than piecemeal adjustments.

The bill is concise and straightforward, allowing readers to quickly grasp its provisions and implications.

Section 2(a)

Temporary Higher FMAP for Regulatory Compliance Costs

prominently featuredmoderately complex

This provision temporarily increases the federal share of Medicaid funding (Federal Medical Assistance Percentage or FMAP) to 90% for state expenditures incurred in 2027, 2028, or 2029. This enhanced funding is specifically for costs associated with complying with certain federal regulations (parts 541.600 of title 29, Code of Federal Regulations; or parts 430, 431, 435, 436, 440, 441, or 447 of title 42, Code of Federal Regulations) for services furnished in intermediate care facilities or home and community-based services for individuals with intellectual and developmental disabilities.

GroupImpactMechanismScale
GroupState Medicaid programsImpactReceive increased federal reimbursement for specific compliance costs, reducing their state share.MechanismHigher FMAP (90%) for eligible expenditures.ScaleSignificant financial relief for states.
GroupIntermediate care facilities and home and community-based service providersImpactPotentially better resourced to meet federal regulatory standards due to increased state funding capacity.MechanismStates have more federal funds to support compliance efforts.ScaleImproved financial stability and capacity for regulatory adherence.
GroupIndividuals with intellectual and developmental disabilitiesImpactBenefit from services provided in facilities and programs that are better able to meet federal quality and operational standards.MechanismEnhanced funding supports quality of care and program integrity.ScaleImproved quality and access to care.

Supporters argue

Supporters argue this provision is essential to help states and providers meet critical federal standards for care without undue financial burden, ensuring high-quality services for a vulnerable population. The temporary nature provides targeted relief during a period of adjustment to complex regulations.

Critics contend

Critics might contend that increasing the FMAP for specific compliance costs sets a precedent for federalizing more state responsibilities or that it could lead to states relying on temporary federal boosts rather than developing sustainable funding models. Some might also argue that the specific regulations chosen are not the most impactful or that the enhanced FMAP should be broader.

Tradeoffs

This provision balances the federal interest in ensuring high standards of care with the financial realities faced by states and providers. It aims to alleviate immediate financial pressure but raises questions about long-term funding sustainability post-2029.

Section 2(b)

Conforming Terminology Updates for Intellectual and Developmental Disabilities

mentioned in summarystraightforward

This section systematically replaces outdated and potentially offensive terminology, such as "intermediate care facility for the mentally retarded" and "mental retardation," with modern and respectful terms like "intermediate care facility for individuals with intellectual and developmental disabilities" and "intellectual or developmental disability." These changes are applied throughout Title XIX of the Social Security Act, including in facility names, descriptions of individuals, and state authority titles.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

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