Statement on Latest Federal Deferral of IHSS Funds
Hulyo 23, 2026
CMS is intensifying its actions against California’s in-home care system, affecting children and adults with significant disabilities and seniors who rely on these services to remain safely at home.
CMS has deferred an additional $646.4 million from in-home care, which keeps Medi-Cal members with disabilities in their homes and out of institutions. This follows a previous $1.1 billion deferral from May, bringing the total to $1.7 billion deferred.
CMS is punishing the state for growing the program to serve the Californians who need it. In-home care growth reflects intentional, federally encouraged expansion, not improper spending. Growth in eligibility, increased wages for caregivers, and support for higher-acuity members are all in line with longstanding federal policy. In essence, CMS now seeks to penalize California for what was CMS’ own policy.
California’s approach, which had been long approved by CMS, saves federal and state taxpayers money. One year of in-home care saves state and federal taxpayers approximately $100,000 per person annually versus nursing facility care. A 2020 California State Auditor report found no program integrity concerns and recommended increasing reimbursement rates to grow the in-home care provider workforce and reduce reliance on costly institutional care. California did exactly that.
California is calling on CMS to stop threatening care for California’s most vulnerable residents.
# # #
Tanggapan ng Komunikasyon
(916) 440-7660
DHCSPress@dhcs.ca.gov