This legislation mandates the Secretary of Health and Human Services, through the Centers for Medicare & Medicaid Services, to implement the Perinatal Care Alternative Payment Model Demonstration Project . Running from fiscal years 2027 to 2031, this project enables states to test various payment models for maternity care provided to pregnant and postpartum individuals enrolled in their Medicaid and CHIP programs. The demonstration project aims to improve maternal health outcomes, especially for populations experiencing higher rates of maternal mortality, severe maternal morbidity, and health disparities. In establishing the project, the Secretary must coordinate with a wide range of stakeholders, including State Medicaid programs, maternity care providers, patient advocacy groups, community-based organizations, and perinatal health workers. Alternative payment models considered for the project must focus on several key areas. These include improving outcomes for at-risk demographic groups, stratifying patients by pregnancy risk level, establishing evidence-based quality metrics, and considering non-hospital birth settings and social determinants of maternal health. Models should also incorporate diverse maternity care teams, including mental and behavioral health providers, and address maternal mental health conditions and substance use disorders. States interested in participating must submit an application to the Secretary. The bill requires an evaluation of the project's impact on maternal health outcomes, spending on maternity care, and patient experience, with data stratified by various demographic factors. Finally, the Secretary must submit a report to Congress and make it publicly available, detailing the evaluation results and recommending whether the demonstration project should be continued and expanded nationally after 2031.