AN ACT RELATING TO HUMAN SERVICES -- CHILDREN'S MEDICAID TRANSFORMATION INFRASTRUCTURE FUND ACT (Establishes a fund to support children’s community-based providers’ infrastructure changes necessary and related to the state’s Medicaid transformation initiative.)

H8404

2026 -- H 8404
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO HUMAN SERVICES -- CHILDREN'S MEDICAID TRANSFORMATION
INFRASTRUCTURE FUND ACT

Introduced By:
Representatives Dawson, Read, Noret, Serpa, Fellela, Messier, Kazarian,
Bennett, Spears, and Caldwell

Date Introduced:
April 03, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. The general assembly finds that:
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(1) The State of Rhode Island is undertaking a Medicaid transformation initiative for
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children’s community-based providers, scheduled to begin implementation on or about January 1,
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2027;
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(2) Said transformation will require providers to meet new standards related to care
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coordination, data reporting, accountability, and service integration;
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(3) Many community-based providers currently lack the administrative, technological, and
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workforce infrastructure necessary to meet these new requirements;
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(4) The state has previously recognized the importance of infrastructure investment in
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implementing Medicaid reforms, including through the Certified Community Behavioral Health
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Clinic (CCBHC) program;
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(5) Providing targeted infrastructure funding will ensure continuity of services, protect
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access to care, and improve outcomes for children and families; and
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(6) The purpose of this act is to establish a dedicated fund to support children’s community-
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based providers in building the infrastructure necessary to successfully implement Medicaid
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transformation.
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SECTION 2. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby
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amended by adding thereto the following chapter:

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CHAPTER 8.16
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CHILDREN’S MEDICAID TRANSFORMATION INFRASTRUCTURE FUND ACT
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40-8.16-1. Title.

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This chapter shall be known and may be cited as the “Children’s Medicaid Transformation
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Infrastructure Fund Act.”
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40-8.16-2. Establishment of fund.

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(a) There is hereby established within the department of children, youth and families
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(DCYF) a restricted receipt account to be known as the “Children’s Medicaid Transformation
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Infrastructure Fund.”
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(b) The fund shall consist of:
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(1) Appropriations from the general assembly;
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(2) Federal funds including, but not limited to, Medicaid administrative matching funds,
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state fiscal recovery funds, or other federal sources; and
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(3) Any other public or private funds made available to implement or administer the
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purposes of this chapter.
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(c) The sum of five million dollars ($5,000,000) is hereby appropriated for fiscal year 2027
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to fund this program.
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40-8.16-3. Administration.

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(a) DCYF shall administer the fund in coordination with the executive office of health and
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human services (EOHHS).
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(b) DCYF is authorized to:
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(1) Establish program guidelines, eligibility criteria, and reporting requirements;
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(2) Provide technical assistance to applicants and grantees;
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(3) Enter into contracts or grant agreements with eligible entities; and
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(4) Monitor compliance and evaluate outcomes.
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(c) DCYF may phase funding over multiple stages, including planning, implementation,
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and readiness phases.
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40-8.16-4. Eligible entities.

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(a) Eligible entities shall include nonprofit and community-based organizations that:
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(1) Provide services to children and families and are enrolled in or eligible to enroll in the
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Rhode Island Medicaid program; or
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(2) Contract with or are designated by DCYF or EOHHS.
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(b) Priority may be given to organizations that:
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(1) Serve high-need or underserved populations;

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(2) Demonstrate participation in Medicaid transformation initiatives; or
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(3) Provide critical safety net services.
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40-8.16-5. Allowable uses of funds.

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Funds awarded under this program shall be used solely for infrastructure and capacity-
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building activities necessary to comply with Medicaid transformation requirements including, but
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not limited to:
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(1) Workforce recruitment, retention, and training;
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(2) Development or enhancement of data systems, including electronic health records and
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reporting tools;
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(3) Care coordination infrastructure and partnership development;
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(4) Administrative and financial system upgrades necessary for new payment models;
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(5) Quality improvement and compliance systems;
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(6) Facility improvements necessary to expand service access; and
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(7) Other costs approved by DCYF that directly support readiness for Medicaid
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transformation.
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40-8.16-6. Funding determination and distribution.

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(a) DCYF shall establish a methodology to award funds based on demonstrated need and
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documented costs associated with Medicaid transformation readiness.
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(b) Applicants shall be required to submit:
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(1) A detailed budget outlining projected infrastructure costs;
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(2) A readiness or gap assessment identifying current capacity and required improvements;
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and
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(3) A plan for achieving compliance with Medicaid transformation requirements.
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(c) Awards may be scaled based on:
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(1) The size and scope of the provider organization;
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(2) The population served;
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(3) The extent of infrastructure gaps; and
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(4) The demonstrated cost of achieving compliance.
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40-8.16-7. Reporting and accountability.

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(a) DCYF shall require periodic reporting from grantees, including:
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(1) Use of funds;
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(2) Progress toward infrastructure development; and
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(3) Readiness to meet Medicaid transformation requirements.
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(b) DCYF shall submit an annual report to the governor and the general assembly no later

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than January 31 of each year, detailing:
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(1) Funds awarded and expended;
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(2) Types of infrastructure investments made;
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(3) Measurable outcomes achieved; and
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(4) Recommendations for future funding or program modifications.
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40-8.16-8. Rules and regulations.

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DCYF is authorized to promulgate rules and regulations necessary to implement the
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provisions of this chapter.
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SECTION 3. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO HUMAN SERVICES -- CHILDREN'S MEDICAID TRANSFORMATION
INFRASTRUCTURE FUND ACT
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This act would establish a fund to support children’s community-based providers’
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infrastructure changes necessary and related to the state’s Medicaid transformation initiative. This
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act would appropriate five million dollars ($5,000,000) for fiscal year 2027 to fund the program.
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This act would take effect upon passage.
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