CMS Releases Guidance on Medicaid Work Requirements

This week, the Centers for Medicare and Medicaid Services (CMS) released guidance detailing how states must implement Medicaid community engagement requirements—such as work, education, or volunteer activities—as a condition of eligibility for certain individuals starting January 1, 2027. The guidance also establishes federal financial support, including a $200 million grant in FY26 to assist states with building compliance systems, alongside enhanced federal financial participation (FFP) to integrate information technology with state operations. 

Click here to view the guidance from CMS. To consult GFOA’s timeline of changes to Medicaid under OBBBA, click here.