Medicaid entitlement for 2 - FY 2026 - T19

The Department of Health and Human Services Centers for Medicare and Medicaid Services awarded the Alabama Medicaid Agency $26.783 billion in Medicaid entitlement funding on October 1, 2025, under the Grants to States for Medicaid program (CFDA 93.778). The award funds medical assistance payments for eligible populations including cash assistance recipients, children, pregnant women, the aged, and other categorically-eligible groups, including medically-needy persons in Alabama where the state elects to provide such coverage. The award also funds Medicare premiums, copayments, and deductibles for qualified Medicare beneficiaries meeting income requirements. The period of performance runs from October 1, 2025, through September 30, 2026. Alabama Medicaid Agency, a state government entity located in Montgomery, administers Medicaid services across Alabama. States receive quarterly grant awards based on estimated funds needed; this award represents the obligated amount for the fiscal year. Recipients maintain eligibility as long as they meet state requirements, and individuals denied medical assistance retain appeal rights with a 60-day state resubmission deadline for revised applications.