CMS announces grant awards to improve the continuity of care for justice-involved individuals

Key Takeaways

AUGUST 19, 2025 UPDATE: The Centers for Medicare & Medicaid Services (CMS) awarded four-year planning grants to 29 state Medicaid and CHIP agencies to enhance continuity of care for individuals in public institutions who qualify for these services. Awardees include Medicaid and CHIP agencies in Alabama, Alaska, Arkansas, Colorado, Delaware, the District of Columbia, Georgia, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Dakota, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Utah, Virginia and West Virginia.

MARCH 18, 2025 UPDATE: The Centers for Medicare & Medicaid Services (CMS) has extended the second application period for its $106.5 million Medicaid and Children’s Health Insurance Program (CHIP) planning grants to April 18, 2025, at 11:59 p.m. ET. The previous deadline was March 17. These grants support states and counties in addressing operational barriers and ensuring continuity of care for incarcerated individuals. To learn more, please see full details and eligibility below. CMS will also host an informational webinar on March 27 from 12-1 p.m. ET. States and territories that did not receive funding in the first round are encouraged to apply via Grants.gov. 

See the NOFO Register for the Webinar

On September 27, the Centers for Medicare & Medicaid Services (CMS) announced $106.5 million in state planning grants aimed at improving healthcare continuity for individuals transitioning from incarceration. These grants, made possible by the Consolidated Appropriations Act (CAA), 2024 (P.L. 118-42), offer critical funding to state Medicaid and Children’s Health Insurance Program (CHIP) agencies to address operational barriers and develop systems to ensure continuous care for justice-impacted individuals. The funds directly support the implementation of Section 5121 of the CAA, 2023 (P.L. 117-328), which requires states to provide Medicaid and CHIP services to eligible juveniles as they transition out of incarceration beginning January 1, 2025.

NACo’s update on Section 5121 Guidance

Notice of funding opportunity

Grants are available for state Medicaid and CHIP agencies to enhance continuity of care for individuals in public institutions who qualify for these services. Key details include:

• Eligibility Requirements:
  • Beginning January 1, 2025, states must provide Medicaid and CHIP services to eligible juveniles during the transition surrounding their release from incarceration.
  • Starting January 1, 2026, states are prohibited from terminating Medicaid eligibility for incarcerated individuals.
• Funding Usage: Funds can be utilized to address operational barriers, implement automated systems, and improve oversight in state prisons, local jails, tribal and county detention facilities and youth correctional institutions.
• Funding Availability: A total of $106.5 million will be awarded to up to 56 recipients over a four-year period, with individual awards ranging from $1 million to $5 million.

State Medicaid and CHIP Agencies may submit one application per state. This grant has two separate application deadlines, November 12, 2024 (Cohort 1) and March 17, 2025 (Cohort 2), with half of the funding available for each application cohort. Funding for Cohorts 1 and 2 is anticipated by February and July of 2025, respectively.

View the NOFO

Impact on counties

This funding opportunity represents a critical resource for counties, enhancing healthcare access for individuals re-entering the community after incarceration. By streamlining Medicaid and CHIP enrollment, counties can reduce gaps in care, especially for those with mental health or substance use issues. This will lower emergency room visits and reduce recidivism, easing the strain on county services. Additionally, the funding will help automate processes, reducing administrative burdens for county health departments and jails.