Disability Community Act of 2026

This bill aims to provide temporary financial relief to states by increasing the federal share of Medicaid expenditures for certain services. It proposes a 90 percent Federal Medical Assistance Percentage (FMAP) for costs associated with complying with specific federal regulations.

This enhanced FMAP would apply to services provided in intermediate care facilities or home and community-based services for individuals with intellectual and developmental disabilities. The higher federal matching rate is intended to cover expenses incurred during 2027, 2028, and 2029, specifically for compliance with regulations outlined in parts of titles 29 and 42 of the Code of Federal Regulations. Additionally, the bill includes significant conforming amendments to replace outdated terminology, such as "mentally retarded," with more appropriate language like "individuals with intellectual and developmental disabilities" throughout the Social Security Act.