BABIES Act

The BABIES Act (HR 5202) provides federal grants and Medicaid demonstration programs to expand access to freestanding birth centers, primarily benefiting low-risk pregnant women in underserved areas who rely on Medicaid. It allocates $5 million (2026-2030) for grants up to $500,000 per birth center to cover facility upgrades, equipment, and accreditation costs, with priority for centers in maternity care deserts or areas with poor outcomes. Additionally, it creates a 4-year Medicaid demonstration program testing new payment models for birth centers that meet strict standards (like accreditation, licensure, and emergency capabilities), requiring states to develop prospective payment systems covering services from pregnancy through postpartum care. The program aims to improve access and quality of low-risk maternity care while collecting data on clinical outcomes and costs compared to traditional hospital services.