Medicaid entitlement for 52 - FY 2026 - T21

The Centers for Medicare and Chip Services (CMCS) awarded the Tennessee Department of Finance and Administration, operating through the Tenncare Bureau Office, a $462.1 million block grant under the Children's Health Insurance Program (CHIP, CFDA 93.767) for fiscal year 2026. The award, dated October 1, 2025, extends through September 30, 2027, and funds Tennessee's provision of health insurance coverage to low-income, uninsured children and eligible pregnant women. As a federal-state matching program, CHIP enables states to operate separate programs, expand Medicaid eligibility, or implement a combination approach to maintain and expand child health assistance.

The Tenncare Bureau Office administers CHIP entitlements by determining eligibility, processing claims, making medical assistance payments, and overseeing healthcare service delivery for vulnerable pediatric and maternal populations across Tennessee. The bureau collaborates with sub-grantees including the Tennessee Department of Health and Vanderbilt University Medical Center to implement specialized healthcare initiatives. This block grant award reflects the state's ongoing responsibility to provide accessible, quality health care to enrolled children and represents one component of approximately $2.75 billion in federal healthcare funding the Tenncare Bureau Office received in October 2025 for fiscal year 2026 operations.