March 16, 2026
Entitlement Program Update
Medicaid: Administration Increases Attack on Medicaid Fraud and People with Disabilities
This week, the Centers for Medicaid and Medicare Services (CMS) briefed the House Energy and Commerce Committee Majority on issues related to Medicaid fraud. CMS outlined that Medicaid programs experiencing high rates of fraud include: (1) Applied Behavior Analysis (ABA), (2) non-emergency medical transportation (NEMT), (3) home and community-based services (HCBS), (4) lab services, (5) substance use disorder treatment, and (6) hospice.
As a result, the House Energy and Commerce Committee has sent letters to ten blue-leaning states. The letters request responses to 10 questions related to program integrity and are aimed at using isolated incidents of fraud in specific cases to claim that HCBS and the other named services are at high risk for fraud. Each letter also says “(State) broadly defines Medicaid eligibility and administers several programs that are considered high risk for FWA.” Below we outline the states that received letters and have included the services each letter targets:
- New York: personal care services, adult day care centers, NEMT.
- Vermont: behavioral health and HCBS personal care services.
- Nebraska: ABA, HCBS including personal assistant and personal care services, and behavioral health.
- Pennsylvania: HCBS, such as personal and home care services and behavioral health
- Oregon: HCBS, such as consumer-employed provider (CEP) program, SUD, and nursing home services.
- Maine: rehab and community support services for children with autism, and HCBS such as home health and interpreting services. Notes the 2/6/26 CMS letter about trends in behavioral health billing, interpreting services, psychosocial rehab services, HCBS personal care services, and residential habilitation services.
- Colorado: NEMT, ABA, and genetic lab services.
- Washington: clinical lab services, DME, and behavioral health and SUD treatment
- Massachusetts: NEMT, Personal Care Attendant program, home health, and clinical lab services.
- California: HCBS such as IHSS, in addition to home health and hospice. Notes the January 27, 2026 letter from CMS including on concerning trends in IHSS, home health, and hospice.
- For additional information on healthcare fraud, view the administration’s press release.
TASH will continue to share updates as we receive them. Please feel free to let us know if you have any questions or concerns.
Administration Updates
U.S. Department of Education Announces Interagency Agreements
On February 23, the U.S. Department of Education (DOE) released new information related to the continued breakdown of the Department-established “partnerships” between DOE and other federal agencies. The first partnership, between DOE and the U.S. Department of State (State) focuses on higher education and Section 117, outlining foreign gifts and contract reporting.
More importantly, the agreement also outlined a new partnership between DOE and the U.S. Department of Health and Human Services (HHS). Programs administered by DOE including School Emergency Response to Violence (Project SERV), School Safety National Activities, Ready to Learn Programming, Full-Service Community Schools, Promise Neighborhoods, and Statewide Family Engagement Centers will move over to HHS, where the Department will manage competitions, provide technical assistance, and integrate DOE programs with the larger suite of disaster preparedness and response programs that HHS already administers.
TASH continues to follow programs for kids with disabilities within DOE, including IDEA and Section 504. At this time, we are hearing that the decision of where IDEA will land in the department shakeup may not occur until after the midterm elections.
The Fiscal Year (FY) 2026 omnibus appropriations joint explanatory statement clarifies how the Department of Education (DOE) can use its funding. It emphasizes that DOE funds must be used only for programs, projects, and activities specifically authorized by law, and that the department cannot transfer these funds to other federal agencies unless explicitly allowed by Congress. The statement also notes that DOE cannot delegate its core responsibilities to other agencies, including through contracting services, without legislative authorization. To ensure oversight and transparency, DOE and any signatory agencies are required to provide biweekly briefings to Congress on the implementation of interagency agreements. These provisions help ensure that federal education programs—including those supporting students with disabilities—are carried out as intended by law.
Section 504 Lawsuit Raises Disability Rights Concerns
A lawsuit filed in January and issued by nine states to HHS challenges updated federal rules under Section 504 of the Rehabilitation Act, including the integration mandate that ensures people with disabilities can access services in community settings rather than being confined to institutions.
The case, related to disability rights, is a revised version of the lawsuit, Texas v. Kennedy (formerly Texas v. Becerra). In the earlier version, Texas and 16 other states argued that Section 504 itself is unconstitutional and challenged updated Section 504 rules published by HHS in 2024. After outrage and advocacy from the disability community, the states withdrew their claim that Section 504 is unconstitutional. The remaining states continue to challenge the updated rules.
The new complaint outlines the following requests from states to the court: (1) To declare that the entire Section 504 rule is unlawful, (2) Stop HHS from enforcing the entire rule, and (3) Stop HHS from telling states they cannot take actions that place people with disabilities at “serious risk” of institutionalization.
If you reside in Texas, Alaska, Florida, Indiana, Kansas, Louisiana, Missouri, Montana or South Dakota urge your governors and attorneys general to withdraw this lawsuit and stop attacking the right of people with disabilities to live and participate in their communities. Information about how to contact the attorneys general in these states can be found at dredf.org/protect-504.
U.S. Department of Homeland Security Shutdown
As we enter the fifth week of the partial shutdown of the U.S. Department of Homeland Security (DHS), lawmakers in both the House and Senate continue to be at odds over the funding impasse. This comes as the United States continues participation in the Middle East war. At home, fewer TSA agents are reporting to work (they have missed two pay periods) and travelers at airports are beginning to experience long lines and waiting times. TASH will continue to follow developments on the partial shutdown and will update you with relevant information.
On the Horizon
Government Accountability Office Releases New Report Related to Employment for People with Disabilities
The Government Accountability Office (GAO) released a new report, “Workforce Innovation and Opportunity Act: Actions Needed to Ensure People with Disabilities Can Access DOL Programs”. The report confirms that while there has been significant progress towards accessibility, individuals with disabilities continue to face barriers to receive job training services. Over 500,000 people with disabilities were unemployed and actively looking for work from 2021-2024 and the GAO investigation reported challenges in ensuring that third-party training services provide adequate accommodations to ensure job training is accessible for individuals with disabilities.
TASH Advocacy Letters
- TASH signed on to a letter: Congress Must Prioritize Health Care and Programs for Older Adults and Stop Harmful Immigration Enforcement Policies, February 26, 2026
To learn more about TASH’s policy positions and sign on letters and for other advocacy resources, visit our Advocacy Tools & Resources page.
Washington Update logo image credit: Romain Pontida, Creative Commons, Attribution-ShareAlike 2.0 Generic, some modifications.