BABIES Act
Sponsored By: Senator Sen. Luján, Ben Ray [D-NM]
Introduced
Summary
Expand access to freestanding birth centers by funding start-up and expansion grants and by piloting Medicaid payment models to broaden birth center care for low-risk pregnancies.
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- Pregnant people on Medicaid: Could see more access to birth center care and coordinated coverage that spans prenatal care, delivery, at least two postpartum visits, and the newborn period through 28 days.
- Freestanding birth centers: Accredited or soon-to-be accredited centers could get start-up or expansion grants of $300,000 to $500,000. Up to 15 centers could be funded for fiscal years 2026 through 2030, with priority for maternity care shortage areas.
- States and Medicaid programs: States could run a four-year Medicaid demonstration testing prospective payment systems with federal matching for the first 16 fiscal quarters of participation. Planning grants would support up to six States and the demonstration is funded at $6 million per year for four years.
*This bill would increase federal spending by $32 million in authorized appropriations.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Start-up grants for birth centers
If enacted, the bill would create Strong Start Birth Center Grants to help freestanding birth centers start or expand. For fiscal years 2026 through 2030, up to 15 centers each year could get a grant of at least $300,000 and up to $500,000. Eligible centers must be accredited or seeking accreditation. Grant money could pay for renovation, construction, equipment, accreditation, and State licensure. The section authorizes $5 million for FY2026–FY2030 to carry out the program.
Medicaid demo for birth centers
If enacted, the bill would let HHS run a Medicaid demonstration to test new payment models for freestanding birth centers. It would cover women on Medicaid with a low-risk pregnancy in states picked for the test. The Secretary must publish rules and payment guidance within 1 year and states must start selected demonstrations within 2 years. Each state demo would run 4 years, and federal matching for approved birth center services would apply only for the first 16 fiscal quarters of a state’s participation. The bill would also provide $3 million for planning grants and $24 million ($6 million per year for 4 years) for the demonstrations, funds to remain available until spent.
Sponsors & CoSponsors
Sponsor
Sen. Luján, Ben Ray [D-NM]
NM • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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