Federal Block Grant Award Summary

The Centers for Medicare and Medicaid Services (CMS) awarded Arizona Health Care Cost Containment System (AHCCCS) $318.9 million in Medicaid entitlement funding for fiscal year 2026 under the Grants to States for Medicaid program (CFDA 93.778). This block grant, effective October 1, 2025 through September 30, 2026, supports AHCCCS's core mission as Arizona's state Medicaid agency to provide medical assistance and comprehensive healthcare services to eligible low-income populations, including cash assistance recipients, children, pregnant women, elderly individuals, and other categorically-eligible groups.

Under this award, AHCCCS administers quarterly distributions of federal funds to reimburse medical assistance payments on behalf of eligible beneficiaries throughout Arizona. The funding enables the state to cover essential healthcare services for vulnerable populations while maintaining compliance with federal Medicaid requirements and HHS-approved State Plan guidelines. As the designated state Medicaid administrator, AHCCCS leverages this entitlement funding to ensure continuous medical coverage and access to participating healthcare providers for qualifying individuals.