H.R. 9940: Disability Community Act of 2026

This bill would make two main changes to Medicaid rules for people with intellectual and developmental disabilities.

Temporary higher federal Medicaid funding

For certain Medicaid spending in 2027, 2028, and 2029, the federal government would pay a higher share of the cost than it normally does. Specifically, it would cover 90% of certain expenses that states incur to comply with specified federal regulations.

This higher federal match would apply to Medicaid costs tied to:

• Intermediate care facilities serving people with intellectual and developmental disabilities, and
• Home- and community-based services for individuals with intellectual and developmental disabilities.

The bill says the added federal funding would only cover costs that the Secretary of Health and Human Services determines are attributable to compliance with certain listed regulations.

Updated terminology in federal law

The bill would also replace older legal terms throughout Medicaid-related sections of the Social Security Act. For example, it would change phrases like:

• “mentally retarded” to “individuals with intellectual or developmental disabilities”
• “mental retardation” to “intellectual or developmental disability”
• “State mental retardation or developmental disability authority” to “State intellectual or developmental disability authority”

It would also update related references in Medicaid provisions covering nursing facilities, service definitions, and state oversight language so the terminology is consistent with current usage.

Practical effect

In plain terms, the bill would try to make it less costly for states to meet certain federal requirements when providing Medicaid-funded services to people with intellectual and developmental disabilities. It would do this by temporarily increasing the federal government’s share of those compliance-related expenses and by modernizing outdated terms in the law.

Relevant Companies

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