H 8404Children

Human Services - Children's Medicaid Transformation Infrastructure Fund Act

This bill creates a $5 million fund to help children's healthcare providers upgrade their technology, facilities, and workforce.

Held for study

Population
Affected

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Introduced Apr 3, 2026Committee House Finance

Plain-English Summary

This bill creates the "Children's Medicaid Transformation Infrastructure Fund" to assist community-based organizations that provide services to children and families. It sets aside $5 million for the 2027 fiscal year to be distributed as grants. Eligible nonprofits can use these funds to upgrade their technology, hire and train staff, improve their facilities, and update their administrative systems. The Department of Children, Youth and Families will manage the fund and require organizations to report how the money is spent to ensure they meet new Medicaid requirements taking effect in 2027.

For younger readers

This bill creates a special piggy bank with $5 million in it to help groups that take care of sick or hurt kids. The money will be given out to help these groups buy better computers, fix up their buildings, and hire more helpers. A state group that looks out for kids and families will be in charge of handing out the money. The groups that get the money have to show exactly how they spent it to make sure it was used for the right things.

Who & Where It Applies

Impacted groups

Nonprofit organizationsCommunity-based healthcare providersChildren on MedicaidLow-income familiesHealthcare workers

Impacted communities

All

Constitutional & Fiscal Check

None Likely

Estimated cost

$3.21 per taxpayer

Estimated revenue

None

Bill Analysis

Both viewpoints

For Progressives

Provides critical financial support to community-based and nonprofit organizations that serve vulnerable children and families, strengthening the social safety net.
Explicitly prioritizes funding for organizations that serve high-need or underserved populations, promoting healthcare equity and social justice.
Allows funds to be used for workforce recruitment, retention, and training, which supports healthcare workers and improves the quality of care provided to the community.
The $5 million appropriation may be insufficient to fully address the systemic infrastructure deficits faced by all eligible community-based providers across the state.
Relying on a competitive grant-style distribution method might leave some under-resourced organizations without the necessary funds to meet the new Medicaid requirements.
The bill focuses heavily on administrative and technological compliance rather than directly funding new or expanded medical treatments and direct services for children.

For Conservatives

Includes strict reporting and accountability measures, requiring grantees to submit detailed budgets, gap assessments, and annual reports to verify the proper use of funds.
Helps private, nonprofit community organizations modernize their infrastructure, reducing their long-term reliance on state administrative assistance by improving their operational efficiency.
Focuses on measurable outcomes and compliance with established Medicaid transformation standards, ensuring that taxpayer funds are tied to specific performance metrics.
Appropriates $5 million in taxpayer money to establish a new government fund, increasing state spending and expanding the state budget.
Creates new regulatory frameworks and grants additional rulemaking authority to the Department of Children, Youth and Families, expanding the size and scope of the administrative state.
Directs public funds to nonprofit organizations without explicit ideological safeguards regarding the types of care or non-medical services those organizations might provide.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 74 additions

SECTION 1. The general assembly finds that:

(1) The State of Rhode Island is undertaking a Medicaid transformation initiative for children’s community-based providers, scheduled to begin implementation on or about January 1, 2027;

(2) Said transformation will require providers to meet new standards related to care coordination, data reporting, accountability, and service integration;

(3) Many community-based providers currently lack the administrative, technological, and workforce infrastructure necessary to meet these new requirements;

(4) The state has previously recognized the importance of infrastructure investment in implementing Medicaid reforms, including through the Certified Community Behavioral Health Clinic (CCBHC) program;

(5) Providing targeted infrastructure funding will ensure continuity of services, protect access to care, and improve outcomes for children and families; and

(6) The purpose of this act is to establish a dedicated fund to support children’s community- based providers in building the infrastructure necessary to successfully implement Medicaid transformation.

SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby amended by adding thereto the following chapter: 40-8.16-1. Title. This chapter shall be known and may be cited as the “Children’s Medicaid Transformation Infrastructure Fund Act.” 40-8.16-2. Establishment of fund.

(a) There is hereby established within the department of children, youth and families

(DCYF) a restricted receipt account to be known as the “Children’s Medicaid Transformation Infrastructure Fund.”

(b) The fund shall consist of:

(1) Appropriations from the general assembly;

(2) Federal funds including, but not limited to, Medicaid administrative matching funds, state fiscal recovery funds, or other federal sources; and

(3) Any other public or private funds made available to implement or administer the purposes of this chapter.

(c) The sum of five million dollars ($5,000,000) is hereby appropriated for fiscal year 2027 to fund this program. 40-8.16-3. Administration.

(a) DCYF shall administer the fund in coordination with the executive office of health and human services (EOHHS).

(b) DCYF is authorized to:

(1) Establish program guidelines, eligibility criteria, and reporting requirements;

(2) Provide technical assistance to applicants and grantees;

(3) Enter into contracts or grant agreements with eligible entities; and

(4) Monitor compliance and evaluate outcomes.

(c) DCYF may phase funding over multiple stages, including planning, implementation, and readiness phases. 40-8.16-4. Eligible entities.

(a) Eligible entities shall include nonprofit and community-based organizations that:

(1) Provide services to children and families and are enrolled in or eligible to enroll in the Rhode Island Medicaid program; or

(2) Contract with or are designated by DCYF or EOHHS.

(b) Priority may be given to organizations that:

(1) Serve high-need or underserved populations;

(2) Demonstrate participation in Medicaid transformation initiatives; or

(3) Provide critical safety net services. 40-8.16-5. Allowable uses of funds. Funds awarded under this program shall be used solely for infrastructure and capacity- building activities necessary to comply with Medicaid transformation requirements including, but not limited to:

(1) Workforce recruitment, retention, and training;

(2) Development or enhancement of data systems, including electronic health records and reporting tools;

(3) Care coordination infrastructure and partnership development;

(4) Administrative and financial system upgrades necessary for new payment models;

(5) Quality improvement and compliance systems;

(6) Facility improvements necessary to expand service access; and

(7) Other costs approved by DCYF that directly support readiness for Medicaid transformation. 40-8.16-6. Funding determination and distribution.

(a) DCYF shall establish a methodology to award funds based on demonstrated need and documented costs associated with Medicaid transformation readiness.

(b) Applicants shall be required to submit:

(1) A detailed budget outlining projected infrastructure costs;

(2) A readiness or gap assessment identifying current capacity and required improvements; and

(3) A plan for achieving compliance with Medicaid transformation requirements.

(1) The size and scope of the provider organization;

(2) The population served;

(3) The extent of infrastructure gaps; and

(4) The demonstrated cost of achieving compliance. 40-8.16-7. Reporting and accountability.

(a) DCYF shall require periodic reporting from grantees, including:

(1) Use of funds;

(2) Progress toward infrastructure development; and

(3) Readiness to meet Medicaid transformation requirements.

(b) DCYF shall submit an annual report to the governor and the general assembly no later than January 31 of each year, detailing:

(1) Funds awarded and expended;

(2) Types of infrastructure investments made;

(3) Measurable outcomes achieved; and

(4) Recommendations for future funding or program modifications. 40-8.16-8. Rules and regulations. DCYF is authorized to promulgate rules and regulations necessary to implement the provisions of this chapter.

SECTION 3. This act shall take effect upon passage.