States Use Billions in Federal Funds to Improve Family Caregiving, Home Care

En español | States plan to invest $37 billion in federal money to assist family caregivers, build up the direct care workforce and help older adults and people with disabilities remain in their homes as they age, the White House announced Dec. 11.

New data released by the Centers for Medicare and Medicaid Services (CMS) outlines how states are planning to use funding for home- and community-based services available to them under the AARP-supported American Rescue Plan Act (ARPA), which was signed into law in 2021.

We’re especially pleased that 29 states plan to channel a combined $1.3 billion worth of ARPA funding into activities and programs that support family caregivers – a top priority for AARP.

The funding will support “important state investments that directly assist family caregivers such as respite, training and support,” said Rhonda Richards, an AARP government affairs director.

For example, Colorado expects to use its funding to create a grant program that will let Medicaid providers increase access to respite services through a “matching” database with vetted caregivers, according to CMS.

States also plan to spend ARPA funds on efforts to attract, retain and train home care workers and to reduce or eliminate waiting lists for home- and community-based services under Medicaid.

“Most older adults want to live independently at home. These resources help them do just that and support those who make it possible — family caregivers and the paid workforce,” Richards said.

AARP has long pushed for laws and programs to better support the nation’s 48 million family caregivers. We’re also fighting for better pay, training and working conditions to help address a serious shortage of paid caregivers.

Read more about the White House announcement, and learn more about AARP’s resources for caregivers.