2020 Supplemental Budget Request | CMS 1LI 20 001

Opportunity Information: Apply for CMS 1LI 20 001

The "2020 Supplemental Budget Request" grant opportunity (CMS 1LI 20 001) is a discretionary grant administered by the Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS), under CFDA 93.791. It is designed specifically for state governments that operate Money Follows the Person (MFP) programs and need to establish or update their budgets for calendar year (CY) 2020, with an eye toward how funding decisions will carry into CY 2021 and beyond. The central issue addressed by the opportunity is how states will finance ongoing MFP transition activities, related administrative costs, and potential program close-out work, given that MFP funding for recent years has come from different sources and may require additional requests to cover costs after key dates.

The opportunity explains that 2019 MFP budgets were financed through one of three approaches: states either relied on remaining funds from their 2016 MFP award, used new funds made available through the Medicaid Extenders Act of 2019 for programs that continued MFP transitions, or used a mix of both the leftover 2016 award funds and the new Medicaid Extenders Act funding. CMS indicates that 2020 budgets will follow the same general structure, and the funding path for each state will depend on an important program decision: whether the state chooses to continue conducting MFP transitions during 2020 or instead decides to initiate or finalize close-out of its MFP program. In other words, the budget framework is built to support both continued transition operations and the administrative and service-related work needed to wind down the program if a state opts not to keep transitioning individuals.

A key practical point in the notice is that some states will need to actively request additional funding if they have any 2020 MFP transition-related responsibilities that extend beyond September 30, 2020. CMS clarifies that this includes not only states still transitioning people during 2020, but also states that are no longer conducting new transitions in 2020 yet still must monitor and track individuals who transitioned to the community in 2019. Because these post-transition monitoring and tracking activities can continue after transitions stop, CMS is emphasizing that states should not assume earlier awards will automatically cover those ongoing obligations. Any such additional funding must be sought through CMS's annual budget review process, which functions as the formal mechanism for assessing each grantee's needs and approving supplemental amounts.

CMS also signals that funding decisions for CY 2020 and CY 2021 will be shaped by each grantee's prior spending performance. Similar to the approach used for CY 2019 budget requests, CMS will make an annual determination of available funding for each state based on how that state has historically spent funds on both transition activities and administrative activities. This performance-based budgeting approach means that a state's demonstrated capacity to use funds effectively in past years will influence how much CMS determines is available going forward. For CY 2020 specifically, CMS states that the maximum budget allocation for each MFP grantee was calculated using the highest single-year budget expenditure recorded by that grantee between 2016 and 2019. In effect, CMS is using a "peak spending year" benchmark from that four-year window to set a ceiling on the 2020 budget amount.

Beyond the immediate 2020 supplemental budget, CMS notes that it will provide further information during 2020 about available funding for CY 2021 and CY 2022. That future-looking guidance is expected to address qualified Home and Community-Based Services (HCBS) service costs tied to 2020 MFP transitions, as well as administrative expenses and close-out activities. CMS cautions that maximum CY 2021 award amounts will depend on the availability of funding, indicating that even if states have identified needs, the ultimate award ceilings for 2021 will be constrained by what Congress and CMS have available for the program at that time. The notice also mentions that 2020 funding levels had already been determined and would be communicated separately by email no later than November 20, 2019, which reflects that states were expected to receive individualized allocation information outside the main posting.

From the listing details, the opportunity was created on July 28, 2020, with an original closing date of September 10, 2020. The award ceiling is listed as $70,000,000, and the expected number of awards is 1, which suggests the posting may reflect a consolidated or program-level funding action rather than a typical competitive multi-award grant cycle. Overall, the opportunity functions as guidance and a formal vehicle for states to align their MFP budgets with CMS's annual review expectations, ensure coverage for transition and post-transition responsibilities past September 30, 2020 when applicable, and prepare for later determinations affecting 2021 and 2022 funding for HCBS-related costs, administration, and close-out work.

• The Department of Health and Human Services, Centers for Medicare Medicaid Services in the health sector is offering a public funding opportunity titled "2020 Supplemental Budget Request" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 93.791.
• This funding opportunity was created on Jul 28, 2020.
• Applicants must submit their applications by Sep 10, 2020 No Explanation. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $70,000,000.00 in funding.
• The number of recipients for this funding is limited to 1 candidate(s).
• Eligible applicants include: State governments.

Apply for CMS 1LI 20 001

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