BABIES Act

S 5262, the BABIES Act, provides federal funding to expand access to birth centers in underserved areas and tests new Medicaid payment models for low-risk maternity care. It authorizes $5 million (2025-2029) for grants up to $500,000 per birth center to cover facility renovations, equipment, or accreditation, prioritizing centers in maternity care shortage areas. The bill also creates a 4-year Medicaid demonstration program ($24 million total) to develop payment systems for birth centers meeting strict safety and care coordination standards, focusing on low-risk pregnancies. This directly affects birth centers seeking accreditation, Medicaid recipients in underserved communities, and states testing new payment approaches for maternity services.