This legislation mandates the creation of the Perinatal Care Alternative Payment Model Demonstration Project , to be implemented by the Secretary of Health and Human Services from fiscal years 2027 to 2031. The project aims to enable states to experiment with innovative payment models for maternity care services provided to pregnant and postpartum individuals enrolled in Medicaid and CHIP programs. A key objective is to enhance maternal health outcomes, particularly for populations experiencing higher rates of maternal mortality, severe morbidity, and health disparities. In establishing the demonstration, the Secretary must coordinate with a wide range of stakeholders, including state Medicaid programs, maternity care providers, patient advocacy groups, and community organizations. The alternative payment models considered must focus on improving outcomes for at-risk groups, stratifying patients by pregnancy risk, and incorporating evidence-based quality metrics. Furthermore, the models should consider non-hospital birth settings, social determinants of maternal health, diverse care teams, and maternal mental health conditions and substance use disorders. The Secretary is also required to evaluate the project's impact on maternal health outcomes, spending, and patient experience, and to report findings and recommendations to Congress.