Federal grants and Medicaid pilot expand birth center access for low-income mothers

What it does

This bill creates federal grants to help birth centers open or expand in underserved areas, and establishes a Medicaid demonstration program allowing states to test new payment models for birth center care. Birth centers would receive $300,000–$500,000 grants (up to 15 per year, 2026–2030) for facility improvements and accreditation; states would pilot alternative payment systems for low-risk pregnancies covered by Medicaid, with federal cost-sharing and data collection to assess clinical outcomes and cost-effectiveness.

Why we flagged it

The bill's operative mechanism is straightforward: federal grants to birth centers and a Medicaid demonstration program testing alternative payment models. The title accurately describes the function—no misdirection or hidden riders detected.

What the text implies

• The demonstration program's success depends on state participation and willingness to adopt new payment models; if states do not apply or participate, the program's impact will be limited despite authorization.
• Birth centers must meet accreditation and physician-oversight requirements, which may create barriers for smaller or rural providers lacking resources to meet these standards upfront.
• The bill's focus on 'low-risk pregnancy' may inadvertently reinforce a two-tiered maternity system if higher-risk pregnancies remain concentrated in hospital settings, potentially widening disparities.
• Federal cost-sharing is capped at the Federal Medical Assistance Percentage (FMAP), meaning states with lower FMAP rates bear higher costs, potentially discouraging participation in lower-income states where need is greatest.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill expands access to a lower-cost, evidence-supported maternity care option for low-income pregnant people on Medicaid, particularly in underserved areas. It does not restrict existing rights or protections; it adds a new care pathway with built-in safety requirements (physician oversight, hospital transfer agreements, accreditation standards) and rigorous outcome tracking.

Who stands to gain

• freestanding birth centers (eligible for grants and Medicaid reimbursement)
• midwifery practices and certified nurse-midwives (expanded employment/contracting opportunities)
• health insurance companies (potential cost savings if birth center care is less expensive than hospi

Named in the bill

Health Resources and Services Administration (HRSA), Commission for the Accreditation of Birth Centers, Medicaid, Centers for Medicare & Medicaid Services (CMS), Federally Qualified Health Centers (FQHCs), State health departments, Freestanding birth centers, Certified nurse-midwives, International Confederation of Midwives

Where it stands

1 cosponsor: 1 Republicans.

• Sep 8, 2025 — Introduced · Congress.gov: “Introduced in House”
• Sep 8, 2025 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $70,000 in lobbying spend. A filing names 33 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Kelly Morrison, the sponsor, reported $252,592 in PAC receipts in the 2026 cycle.

• Center for Reproductive Rights — $70,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.