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ARPA Spending Deadline for Medicaid HCBS Extended

The U.S. Department of Health and Human Services (HHS) has announced that the deadline for spending Medicaid HCBS funds provided by the American Rescue Plan (ARPA) will be extended for one year, through March 31, 2025. 
 
While efforts to include additional Medicaid HCBS funding through a reconciliation bill have been sidelined, the Biden-Harris Administration remains keen on supporting states as they navigate the expansion of home and community-based services by providing additional time and resources to strengthen ARPA investments.
 
Specifically, ARPA funding for Medicaid HCBS is intended to address existing HCBS workforce and programmatic infrastructure issues. Prior to this announcement, states had three years to leverage funding intended to expand access to much-needed home and community-based services through Medicaid. However, the dire state of the direct-care workforce and the complexity of strengthening Medicaid HCBS has unexpectedly stymied states that are trying to address the increased demand for these services. The one-year extension provides a little more breathing room as states address the workforce issues surrounding the expansion and delivery of these critically necessary services.  
 

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