The HCBS Relief Act of 2025 aims to significantly bolster State Medicaid programs' capacity to provide home and community-based services (HCBS) by offering an emergency increase in federal funding. For fiscal years 2026 and 2027, states approved as "HCBS program States" will receive a 10 percentage point increase in their Federal Medical Assistance Percentage (FMAP) for HCBS expenditures, though the total FMAP cannot exceed 95 percent. To qualify for this enhanced funding, states must submit an application detailing their plans to implement specific activities designed to improve HCBS delivery. States must assure that these federal funds will be expended by September 30, 2029, used to supplement existing state funds, and specifically directed towards enhancing HCBS and supporting the direct care workforce. A key requirement is to increase reimbursement rates for HCBS to facilitate the recruitment and retention of a sufficient workforce. The bill outlines a broad range of permissible activities, including increasing compensation, providing paid leave and hazard pay for home health workers and direct support professionals, and improving job stability. Funds can also be used to address waiting lists for HCBS, purchase emergency supplies, recruit new workers, support family caregivers, and pay for training and assistive technologies. Additionally, the bill supports efforts to assist individuals in moving from nursing facilities back to their homes and resuming community-based care. Finally, the legislation mandates comprehensive reporting requirements for states on how funds were used and the number of individuals served. The Secretary of Health and Human Services will conduct an independent evaluation of the program's implementation and outcomes, focusing on changes in access, availability, and quality of HCBS, with findings to be disseminated publicly and to Congress.