July 23, 2026
Mr. Tonko (for himself and Mr. Fitzpatrick) introduced the following bill; which was referred to the Committee on Energy and Commerce
To amend title XIX of the Social Security Act to provide a temporary higher Federal medical assistance percentage for Federal expenditures under the Medicaid program that are associated with the cost of compliance with certain Federal regulations with respect to services furnished in certain intermediate care facilities or home and community-based services furnished to individuals with intellectual and developmental disabilities.
Section 1. Short title
This Act may be cited as the Disability Community Act of 2026
.
Sec. 2. Higher FMAP for certain Medicaid expenditures associated with certain regulation compliance
(a) In general
Section 1903(a)(5) of the Social Security Act (42 U.S.C. 1396b(a)(5)) is amended—
(1)
by striking an amount equal to
and inserting (A) an amount equal to
;
(2)
by striking supplies;
and inserting supplies; and
; and
(3)
by adding at the end the following:
(B)
an amount equal to 90 percent of the sum of the amounts expended during a quarter in 2027, 2028, or 2029, for items and services furnished in an intermediate care facility for the mentally retarded or for home and community-based services furnished to individuals with intellectual and developmental disabilities, as the Secretary determines are attributable to compliance with any of the regulations specified in—
(i)
part 541.600 of title 29, Code of Federal Regulations; or
(ii)
part 430, 431, 435, 436, 440, 441, or 447 of title 42, Code of Federal Regulations;
(b) Conforming terminology for intermediate care facilities
Title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) is amended—
(1)
by striking intermediate care facility for the mentally retarded
each time such term appears (including in headings) and inserting intermediate care facility for individuals with intellectual and developmental disabilities
;
(2)
by striking intermediate care facilities for the mentally retarded
each time such term appears (including in headings) and inserting intermediate care facilities for individuals with intellectual and developmental disabilities
;
(3)
by striking State mental retardation or developmental disability authority
each time such term appears and inserting State intellectual or developmental disability authority
;
(4)
in section 1905(d)—
(A)
in the matter before paragraph (1), by striking thereof) for the mentally retarded or persons
and inserting thereof) for individuals with intellectual or developmental disabilities or
;
(B)
in paragraph (1), by striking mentally retarded individuals
and inserting individuals with intellectual or developmental disabilities
; and
(C)
in paragraph (2), by striking the mentally retarded individual
and inserting the individual with an intellectual or developmental disability
;
(5)
in section 1915(c)(7)(C), by striking mental retardation
and inserting intellectual or developmental disabilities
;
(6)
in section 1919(b)—
(A)
in paragraph (3)—
(i)
in subparagraph (E), by striking mentally retarded
and inserting has intellectual or developmental disabilities
; and
(ii)
in subparagraph (F)—
(I)
in the heading, by striking and mentally retarded individuals
and inserting individuals and individuals with intellectual or developmental disabilities
; and
(II)
in clause (ii)—
(aa)
by striking is mentally retarded
and inserting has an intellectual or developmental disability
; and
(bb)
by striking for mental retardation
and inserting for intellectual or developmental disabilities
; and
(B)
in paragraph (4)—
(i)
in subparagraph (A)(vii), by striking mentally ill and mentally retarded residents
and inserting residents who are mentally ill or who have intellectual or developmental disabilities
; and
(ii)
in subparagraph (C)(ii)(IV), by striking the mentally retarded
and inserting individuals with intellectual or developmental disabilities
; and
(7)
in section 1919(e)—
(A)
in paragraph (7)—
(i)
in subparagraph (A)(i), by striking mentally ill and mentally retarded individuals
and inserting individuals who are mentally ill or who have intellectual or developmental disabilities
;
(ii)
in subparagraph (B)—
(I)
by striking mental retardation
each place such term appears and inserting intellectual or developmental disability
;
(II)
in clause (ii)—
(aa)
in the heading, by striking mentally retarded residents
and inserting residents with intellectual or developmental disabilities
; and
(bb)
in the matter preceding subclause (I), by striking is mentally retarded
and inserting has an intellectual or developmental disability
; and
(III)
in clause (iii), by striking mentally ill or mentally retarded resident
and inserting resident who is mentally ill or who has an intellectual or developmental disability
;
(iii)
in subparagraph (C), by striking mental retardation
each place such term appears and inserting intellectual or developmental disability
;
(iv)
in subparagraph (E)—
(I)
by striking are mentally retarded or
and inserting have intellectual or developmental disabilities or are
; and
(II)
by striking mental retardation
and inserting intellectual or developmental disability
; and
(v)
in subparagraph (G)(ii)—
(I)
by striking be
and inserting mentally retarded
have
; andan intellectual or developmental disability
(II)
by striking is mentally retarded or a person with
and inserting has an intellectual or developmental disability or
.