- ARRA Coordinating Council
- Funding Categories
- Frequently Asked Questions
- Recovery Spending
Health and Human Services
Medicaid Provisions - State Fiscal Relief
(National Appropriation: $87,000,000,000)
Description: The stimulus package provides a temporary increase in Federal Medical Assistance Percentage (FMAP), or the federal share of Medicaid payments, in three ways. First, states are “held harmless” for any reductions in their FMAP that would have applied this year and through the first quarter of 2011 due to stronger economic conditions that may have prevailed in the state in past years. Second, the American Recovery and Reinvestment Act increases each state’s FMAP by 6.2 percent through Dec. 31, 2010. Third, states with increasing unemployment, determined on a quarterly basis, qualify for additional increases during the recession adjustment period (Oct. 1, 2008, through Dec. 31, 2010); any additional increase will remain in place at least through July 1, 2010.
The American Recovery and Reinvestment Act also put in place a temporary increase in Disproportionate Share Hospital (DSH) Allotments for each state. For Fiscal Year 2009, this provision will increase DSH allotments by 2.5 percent above the allotments states would have received under pre-existing law.
Finally, the stimulus package provides for an 18-month extension of work-related Transitional Medical Assistance (TMA) (through Dec. 31, 2010). States may use a 12-month, rather than 6-month, initial extension period for families transitioning from welfare to work (in which case the additional 6-month extension no longer applies). States may also grant extensions to families that have received such aid for less than three months. States are subject to statistical reporting requirements, with reports due to the U.S. Department of Health and Human Services.
Electronic Health Record (EHR) Technology
(Per Medicaid Provider: $63,750)
Description: As a part of the American Recovery and Reinvestment Act the federal government will provide contributions for amounts states pay to eligible Medicaid providers to encourage the adoption of EHR technology, in order to promote health care quality and the exchange of health care information. The contributions can be as much as $21,250 per provider for the first year of payments (which may not be later than 2016), and as much as $8,500 for up to five years thereafter. Providers eligible for both Medicare and Medicaid incentive payments are required to choose one.
Incentives for Hospitals to adopt EHR Electronic Health Record (EHR) Technology
(National Appropriation: NA)
Description: The stimulus package provides funding for hospitals that are “meaningful users” of EHR technology, as defined by the ARRA. The hospital must demonstrate (via attestation, claim submission, survey or other method specified by the U.S. Secretary of Health and Human Services) that meaningful EHR technology is connected in a manner that provides for the electronic exchange of health information to improve the quality of health care coordination.
Prevention and Wellness Fund Grants
(National Appropriation: $50,000,000)
Description: The American Recovery and Reinvestment Act provides $50 million to the U.S. Department of Health and Human Services to award grants to the states for infectious disease reduction strategies.
Grants to the Office of the National Coordinator for Health Information Technology
(National Appropriation: $2,000,000,000)
Description: Under the stimulus plan, a portion of the funds are set aside for the National Coordinator for Health Information Technology (HIT) to award planning and implementation grants to states or qualified state-designated entities to facilitate and expand electronic health information exchange. The state or state-designated entity must submit a plan describing the activities to be carried out to facilitate HIT exchange. States must contribute a certain portion of matching funds after Fiscal Year 2011 and the American Recovery and Reinvestment Act of 2009: the U.S. Health and Human Services Secretary has the discretion to require such matching funds before then. The Secretary may require annual reports. An annual review by the National Coordinator for HIT is required.
Rehabilitation Services and Disability Research
(National Appropriation: $680,000,000)
Description: The American Recovery and Reinvestment Act provides additional funding for grants to states to carry out the Vocational Rehabilitation Services program under the Rehabilitation Act of 1973. The funds are to be disbursed in the following manner: $540 million for grants to state vocational rehabilitation agencies under part B of title I of the Rehabilitation Act and $140 million for Independent Living programs, per parts B and C of chapter 1 and chapter 2 of title VII of the Rehabilitation Act, including $18.2 million for grants to states; $87.5 million for independent living centers; and $34.3 million for services for older blind individuals. The stimulus plan eliminates state cost-sharing for the use of these additional funds for vocational rehabilitation services.
Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program
(National Appropriation: Approximately $20,000,000,000)
Description: The American Recovery and Reinvestment Act provides additional SNAP funds to be distributed to state agencies by the Department of Agriculture, Food and Nutrition Service, under the Food and Nutrition Act, which provides funding to state agencies. Individuals are entitled to SNAP benefits based on their income and asset levels. Beginning in April 2009, individuals receiving the maximum benefit will receive a 13 percent increase in their benefit levels, which translates to an approximately $19 billion increase in the monies flowing through state agencies. This increase ends after September 30, 2009. Of the additional SNAP funds, the ARRA provides $295 million to the states for the administrative expenses of the program ($145 million for 2009; $150 million for 2010), and $5 million for administrative expenses for programs on Native American reservations.
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
(National Appropriation: $500,000,000)
Description: The American Recovery and Reinvestment Act provides additional funds for this existing program, administered by the Department of Agriculture, Food and Nutrition Service, under the Child Nutrition Act of 1966. Of the total funds, $400 million will be placed in the U.S. Secretary of Agriculture’s reserve fund, to be distributed to the states as the Secretary deems necessary, notwithstanding the usual procedure for distribution of funds and $100 million will be granted to the states to improve information management systems.
Emergency Food Assistance Program
(National Appropriation: $150,000,000)
Description: The American Recovery and Reinvestment Act provides in-kind support to be distributed to the states according to the number of individuals in each state with incomes below the federal poverty level. Allocations come in the form of food commodities, not dollars, which are then distributed to local and non-profit direct-service agencies (e.g. food banks, soup kitchens).
National School Lunch Program
(National Appropriation: $100,000,000)
Description: The American Recovery and Reinvestment Act provides additional funds for improvements in program equipment distributed to the states, in proportion to each state’s administrative expense allocation. States must then distribute these funds via competitive grants to local school food authorities, with priority given to those schools in which at least 50 percent of students are eligible for free or reduced lunch.
Senior Meals Programs
(National Appropriation: $100,000,000)
Description: The American Recovery and Reinvestment Act provides additional funding for grants to state and local governments, with the following designations: $65 million for Congregate Nutrition Services; $32 million for Home-Delivered Nutrition Services; $3 million for Native American Nutrition Services.
Emergency Fund for TANF Program
(National Appropriation: $5,000,000,000)
Description: The American Recovery and Reinvestment Act provides $5 billion in new funds over two years to the TANF block-grant program to states and tribes experiencing increased cash welfare caseloads. States with separate state programs funded with TANF state maintenance of effort dollars are also eligible for grants from the fund, as are states with increased short-term non-recurrent benefit expenditures or increased subsidized employment expenditures under TANF and separate state programs. Grantees are subject to funding caps from the emergency fund, which is repealed as of Oct. 1, 2010.
Children and Family Services Programs
(National Appropriation: $3,150,000,000)
Description: The American Recovery and Reinvestment Act provides funding for children and family services programs as follows:
$1 billion for Head Start grants under the Head Start Act. Grants are available to state and local governments, as well as for-profit and non-profit organizations.
$1.1 billion for Early Head Start, which provides funding for infants and toddlers under the Head Start Act. Grants are available for state and local governments and for-profit and non-profit organizations.
$1 billion for Community Service Block Grant programs under the Community Service Block Grant Act. For such grants provided by the stimulus plan during Fiscal Years 2009 and 2010, states can increase the income eligibility ceiling for receipt of services from 125 percent to 200 percent of the federal poverty level.
$50 million for unspecified spending under section 110 of the Social Security Act, which provides grants to states and local organizations.
Child Care and Development Block Grants
(National Appropriation: $2,000,000,000)
Description: The American Recovery and Reinvestment Act makes additional funds available for grants to state programs that provide low-income families and public-assistance recipients with child care so that parents can work or attend work-training or education classes. The stimulus plan requires that such grants be used to supplement, not supplant, state funding for child care assistance to low-income families.
Corporation for National and Community Service Programs
(National Appropriation: $154,000,000)
Description: The Corporation for National and Community Service (CNCS) manages a series of volunteer programs, including AmeriCorps and Senior Corps, under the Domestic Volunteer Service Act and the National and Community Service Act. In addition, the CNCS provides grants to national, state and local governments, as well as non-profits, for performing volunteer programs.
The American Recovery and Reinvestment Act provides an additional $89 million for existing AmeriCorps grantees, including state and local governments, and allows these funds to be used for increases in grants made prior to Sept. 30, 2010, if the Chief Executive Officer for CNCS deems it appropriate to waive the cost-sharing requirements. Also, the stimulus plan provides an additional $65 million for the AmeriCorps Volunteers in Service to America (VISTA) program. State and local governments, as well as non-profit organizations, can obtain this money by applying for grants for local service projects.
Community Service Employment for Older Americans Grants
(National Appropriation: $120,000,000)
Description: The American Recovery and Reinvestment Act increases the amount available for grants to state and local governments and non-profit organizations that provide work training to Americans over age 55. Funds are available only to existing 2008 grantees.