February 4, 2026
WHY YOU SHOULD CARE ABOUT THE STATE BUDGET
Medicaid (Medical Assistance/MA) funds a variety of services that support family life for children with disabilities. These include in-home nursing, home health aides, medical equipment, special education related services, and behavior supports. (See our Impact Alerts below for more information on those services) About half of the funds for Medicaid-covered services come from the state and the state funds dedicated determine the amount of federal Medicaid funds the state will draw down. The amount of those funds is set in the state budget. If the state budget doesn’t provide enough money for the services children will need during the coming state budget year (July 2026-June 2027), the state Medicaid agency and its contracted Medicaid Managed Care Organizations will be under intense pressure to reduce costs. One way the Medicaid Managed Care Organizations are likely to reduce costs is to reduce the number of hours of home health or behavioral health services they approve. We are seeing that now. The other way Medicaid Managed Care Organizations can cut costs is to reduce payments to providers which can result in some providers no longer accepting Medicaid. So, the amount of money the Governor and the state legislators put into the state budget for Medicaid impacts the ability of children to get the amount of services they need to remain at home with their families. This makes it critical that families use this key time to educate their state officials about the full extent of their children’s service and support needs. To learn more, click here.