Stakeholders may recall that some states had indicated that they would be treating Employee Retention Credit (ERC) funds like tax credits for the purposes of Medicaid cost reports and this had the potential to reduce future Medicaid nursing home rates. LeadingAge, along with AHCA, met with CMS in February to share our concerns with these practices and to request CMS to take a position that ERC funds should be treated like other relief funds (one-time revenues). At that time, CMS asked for time to consider the issue. We have now heard that CMS will be notifying states the week of March 13 that the ERC funds should be treated like other COVID relief funds (e.g., PPP, PRF) and not like a tax credit on Medicaid cost reports.