Federal Block Grant Award Summary

The Centers for Medicare and Medicaid Services (CMS) awarded Arizona Health Care Cost Containment System (AHCCCS) $67.1 billion under the Grants to States for Medicaid program (CFDA 93.778) for fiscal year 2026, effective October 1, 2025 through September 30, 2026. This block grant funds Arizona's state Medicaid program, providing comprehensive medical assistance payments for eligible low-income populations including cash assistance recipients, children, pregnant women, elderly individuals, and medically-needy persons. Services covered include standard medical assistance, Medicare premium and cost-sharing support for qualified beneficiaries, and administrative costs associated with Medicaid program operations.

As Arizona's designated state Medicaid agency, AHCCCS administers these funds to deliver healthcare services through partnerships with local organizations and healthcare providers. The agency leverages this core Medicaid funding alongside specialized federal grants addressing behavioral health, substance use disorders, crisis services, and rural healthcare innovation to support vulnerable populations across Arizona. AHCCCS maintains compliance with HHS-approved State Plan requirements and federal regulations governing medical assistance delivery, with quarterly funding distributions aligned to state estimates of medical assistance needs.