BABIES Act
Sponsored By: Representative Morrison
Introduced
Summary
Would expand access to freestanding birth centers by funding start-up and expansion grants and by creating a Medicaid demonstration to test new payment and delivery models for low-risk pregnancies.
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- Pregnant people and newborns: People with low-risk pregnancies would have more local options for prenatal, birth, and postpartum care, and the demonstration would test payment structures that cover care through delivery and the newborn's first 28 days.
- Freestanding birth centers: Eligible centers could get grants of $300,000 to $500,000, with awards to up to 15 centers across FY2026–2030, for construction, equipment, accreditation, and licensure costs.
- States and Medicaid: Up to six States could receive planning grants to design demonstrations, selected States would run 4-year trials of prospective payment models, and the federal share of demonstration payments would be reimbursed at the Federal medical assistance percentage (FMAP).
*Would increase federal spending by providing $5 million authorized for the grant program (FY2026–2030) and by allocating $3 million for FY2027 planning grants plus $6 million for FY2028–2031 for the Medicaid demonstration.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Medicaid pilot for birth center care
The bill would start a Medicaid pilot to test new payment models for freestanding birth centers that serve women with low-risk pregnancies on Medicaid. HHS would set rules within 1 year; selected States would start within 2 years and run each test for 4 years. The federal government would pay each quarter its FMAP share of State spending under the test, with guidance for separate mother and newborn facility payments, prenatal through at least two postpartum visits, newborn care through 28 days, and partial payments when transfers occur. Centers would need accreditation, State approval, safety plans, and care coordination across hospitals and behavioral health. The bill would also fund $3 million in 2027 for planning and $6 million each year from 2028–2031 for demonstrations, available until spent.
Grants to expand birth centers
The bill would create HRSA grants for freestanding birth centers. Money could pay for renovations, expansion or construction, equipment, and accreditation or State licensure. Up to 15 centers could get awards each year from FY2026 to FY2030. Each grant would be $300,000 to $500,000. Congress would authorize $5 million total for FY2026–FY2030, with preference for centers serving underserved areas.
Sponsors & CoSponsors
Sponsor
Morrison
MN • D
Cosponsors
Hinson
IA • R
Sponsored 9/8/2025
Roll Call Votes
No roll call votes available for this bill.
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