State Policy · MD
Maryland Cuts $126 Million in Medicaid HCBS Funding Amid Federal Rollback
Maryland cut $126 million in Medicaid home- and community-based services funding following federal reductions in Medicaid matching rates under the One Big Beautiful Bill Act signed by President Trump in summer 2026. The cuts affect services that enable people with disabilities to live in their communities rather than institutions. Advocates, including disabled individuals and families, lobbied the Maryland legislature to limit the cuts but could not prevent them entirely. The reductions reflect a broader national trend as federal protections for community-based disability services erode and states respond to budget shortfalls.
Why it mattersState Medicaid agencies and managed care plans face pressure to reduce HCBS spending as federal matching rates decline, potentially forcing more disabled enrollees into institutional care settings.