In March of 2021 the American Rescue Plan Act (ARPA) was signed into law offering a 10 percentage point bump for supplemental investment in qualified home and community based services (HCBS) in eligible states. The additional funds allow states to expand capacity, enhance workforce supports, and build innovative programs to support HCBS access and viability. By accepting funds, states agreed to create spending plans and report quarterly to the Centers for Medicare and Medicaid Services (CMS) on anticipated activities and expended funds.

The summary release by CMS illustrates a number of key takeaways:

• ARPA offered an average of nearly $5,000 additional spending per beneficiary across all states.
• The most common investment remains in workforce recruitment and retention, accounting for more than twice the spending of the subsequent four most popular activities combined.
• 30 states are using funds to implement or improve HCBS quality monitoring, reporting, and oversight
• Nearly $2 billion is anticipated to be spent across 27 states to address housing related supports and services

The figures outlined in the report account both for expended and anticipated fund allocation. CMS will make further updates when data is available for the next quarter.