In This Edition: Explore the latest policy developments ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­    ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­  
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September 22, 2026

Bringing you the latest news impacting our network from Congress and the Administration.

In this Edition

  • CMS Seeks to Expand the Medicare Diabetes Prevention Program (MDPP)

  • New Report Highlights Evolving Medicaid Program Integrity Strategies

  • Appeals Court Allows HUD Homelessness Funding Changes to Move Forward

  • ARPA-H Launches New Autism Research Initiative Amidst Skepticism

  • Congressional Republicans Propose New Anti-Fraud Initiatives

  • Bipartisan Nonprofit Protection Measures Proposed

  • Congress Debates AI Regulation

  • What We Are Reading
 
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CMS Seeks to Expand the Medicare Diabetes Prevention Program (MDPP)

Lutheran Services in America Meets with CMS Staff on MDPP

Lutheran Services in America recently met with CMS staff to discuss this evidence-based prevention program aimed at preventing type 2 diabetes. Part of broader administration efforts to Make America Healthy Again, chronic disease prevention is a key priority to improve health and lower high-cost care. During the discussion, CMS highlighted recent MDPP updates and expressed strong interest in partnering with community-based organizations to reach more eligible beneficiaries.

 

How Members Can Help Increase Beneficiary Awareness

Interested LSA members can help connect beneficiaries to MDPP by sharing information and resources (see below) through outreach channels including through service delivery, community-based programs, and faith-based networks.

 

CMS Seeking Additional MDPP Suppliers

CMS also provided more information for organizations interested in becoming MDPP suppliers. Organizations that serve older adults and have experience delivering health promotion, wellness, or lifestyle change programs may be well positioned to participate directly in the program.

 

Learn and Share More about MDPP:

  • Beneficiary Flyer: https://www.medicare.gov/publications/12019-prevent-type-2-diabetes-medicare-can-help.pdf
  • MDPP Poster: https://www.medicare.gov/publications/12069-medicare-diabetes-prevention-program-poster.pdf
  • MDPP Tear Sheet: https://www.medicare.gov/publications/12068-medicare-diabetes-prevention-program-tearsheet.pdf
  • Additional Promotional Materials: https://nationaldppcsc.cdc.gov/s/article/MDPP-Promotional-Materials-for-Part-B-Beneficiaries

          New Report Highlights Evolving Medicaid Program Integrity Strategies

          A new report from the National Association of Medicaid Directors (NAMD) highlights how state Medicaid programs are building on longstanding “program integrity” efforts to prevent, identify, and address fraud, waste, and abuse while ensuring beneficiaries receive appropriate care. The report outlines four core strategies, including:

           

          Strategy 1: Strengthening Eligibility and Provider Screening

          Key state efforts include:

          • Enhancing eligibility verification processes;
          • Increasing the use of automated data matching;
          • Conducting audits to ensure individuals receiving Medicaid coverage meet program requirements.
          • Intensifying provider screening and revalidation efforts, particularly for providers identified as higher risk, through ownership disclosures, site visits, background checks, and other verification activities.

                  Strategy 2: Improving Utilization Management and Managed Care Oversight

                  State Medicaid programs continue to:

                  • Rely on utilization management tools, including prior authorization requirements, service limits, and clinical review processes to ensure services are medically necessary and billed appropriately.
                  • Work closely with Medicaid managed care organizations (MCOs), which use claims analysis, provider reviews, site visits, and special investigation units to identify potentially fraudulent activity and refer concerns for further investigation.

                      Strategy 3: Leveraging Data Analytics and Technology

                      Many states are:

                      • Investing in advanced data analytics, artificial intelligence, predictive modeling, and dashboard tools to identify unusual billing patterns before improper payments occur.
                      • The report also highlights a growing shift from a traditional “pay-and-chase” approach toward strategies that proactively flag suspicious activity and prevent inappropriate claims from being paid in the first place.

                          Strategy 4: Expanding Audits, Investigations, and Cross-Agency Partnerships

                          States are using:

                          • Post-payment audits, recovery audit contractors, Medicaid Fraud Control Units (MFCUs), and partnerships with law enforcement and other agencies to investigate fraud and recover funds when improper payments are identified.  

                            New Federal Tools Aim to Support State Efforts

                            The report also notes several new federal initiatives designed to strengthen program integrity, including modernization of the National Provider Identifier system, enhancements to the Public Assistance Reporting Information System (PARIS), deployment of the Medicaid Emerging Vulnerability Intelligence and Actions (MEVIA) analytics platform, and development of service-specific program integrity toolkits.

                             

                            Why This Matters for Providers

                            Providers can continue to expect closer attention to eligibility verification, provider enrollment and guidance, documentation, and claims review. Organizations serving Medicaid beneficiaries should work closely with their state Medicaid agencies and where applicable, managed care partners. The report notes that understanding these trends now can help providers anticipate operational changes, strengthen documentation and billing practices, and position themselves for success as state implementation efforts move forward

                             

                            Appeals Court Allows HUD Homelessness Funding Changes to Move Forward

                            Court Pauses Earlier Decision Blocking FY 2026 CoC Funding Changes

                            Last month, we reported that a federal district court had vacated HUD's FY 2026 Continuum of Care (CoC) Notice of Funding Opportunity (NOFO), temporarily blocking significant changes to federal homelessness funding priorities. HUD appealed that decision and sought an emergency stay.  The U.S. Court of Appeals for the First Circuit has now granted the stay. As a result, HUD may proceed with the FY 2026 CoC NOFO for now, even though the underlying legal challenge remains unresolved.

                             

                            What This Means for Providers

                            For housing, shelter, and supportive service providers, this means the FY 2026 CoC competition could move forward in the near term, and application deadlines may be announced quickly. The appeal itself could take months to resolve.  Because the challenged NOFO includes major changes to homelessness funding priorities, uncertainty remains for communities and providers that rely on CoC funding. Organizations should closely monitor guidance from HUD and their local Continuum of Care as the funding process and litigation continue to unfold.

                             

                            Looking Ahead

                            Advocacy organizations challenging the NOFO are evaluating next steps while the appeal proceeds. We will continue tracking developments and any implications for providers serving people experiencing homelessness.

                             

                            ARPA-H Launches New Autism Research Initiative Amidst Skepticism

                            The Advanced Research Projects Agency for Health (ARPA-H), an agency within the U.S. Department of Health and Human Services (HHS), has launched SPECTRA (Systems for Phenotypic Evaluation, Clinical Trajectories, Response, and Agency), a new autism research initiative aimed at improving how autism is identified, understood, and supported across the lifespan. The program reportedly will use biological, clinical, behavioral, and real-world data to develop earlier and more accurate diagnostic tools, better understand individual developmental trajectories, and support more personalized interventions and services.

                             

                            Skepticism and Questions Loom: Promise or Peril?

                            The disability community is still assessing the initiative, and reactions have been mixed  Some stakeholders see promise in efforts to improve early identification, connect individuals and families to supports sooner, and move away from one-size-fits-all approaches to care. They also cite personalized supports and technologies that could improve quality of life.

                             

                            At the same time, questions remain about how SPECTRA aligns with the Administration's broader autism agenda and whether the initiative will be guided by sound science and meaningful engagement with the autism community. Some advocates have also expressed concern about previous comments from HHS leadership regarding autism and are watching closely to see how the program develops.

                             

                            Implications for Providers

                            For providers serving people with autism and their families, SPECTRA could eventually influence screening, assessment, intervention, and care models for better or worse. While the initiative is still in its early stages, this new federal investment in autism research is likely to shape future policies, clinical practices, and support services nationwide.

                             

                            Congressional Republicans Propose New Anti-Fraud Initiatives

                            Congressional Republicans have recently introduced several new proposals focused on fraud prevention and program integrity, alongside the Trump Administration's ongoing efforts to expand federal fraud enforcement activities. The measures span health care programs, public benefit programs, and broader federal anti-fraud enforcement authorities. While the prospects for these proposals remain uncertain, they signal a continued focus on fraud prevention and oversight heading into the midterm elections.

                             

                            Proposed: Health Care Fraudsters Act

                            The Protecting Taxpayers from Health Care Fraudsters Act would authorize future funding for federal programs and offices involved in fraud investigations, including the Health Care Fraud and Abuse Control Program and the HHS Office of Inspector General. The bill would also expand certain oversight authorities related to Affordable Care Act programs. Supporters argue these tools could strengthen the federal government's ability to investigate and prevent health care fraud, while critics have raised concerns about the scope of the proposed authorities and funding mechanisms.

                             

                            Proposed: New Department of Justice Fraud Enforcement

                            The National Fraud Enforcement Division Act of 2026 would establish a National Fraud Enforcement Division within the Department of Justice responsible for coordinating efforts to investigate, prosecute, and address fraud affecting federal programs and the public. The proposal closely aligns with the Administration's earlier creation of a DOJ fraud enforcement division through executive action. Thus far it's unclear if the legislation is intended primarily to codify the existing structure in statute or to expand its authorities and responsibilities.

                             

                            Proposed: PROOF Act Expanding AG Authority

                            The Preventing Rip-offs and Obtaining Oversight of Funds (PROOF) Act would allow the Attorney General to request records from states related to federally funded programs, including Medicaid, SNAP, TANF, and unemployment insurance, for fraud investigation and enforcement purposes. Privacy advocates and some state officials have expressed concerns about expanded federal access to program and identity-verification data, particularly given ongoing debates regarding federal-state data sharing and information privacy.

                             

                            New DOJ Division Expands Fraud Enforcement Infrastructure

                            Separate from recent Congressional legislative proposals noted above, the Department of Justice earlier this year established a new Division for National Fraud Enforcement and recently finalized additional authorities related to its operations. The division is intended to coordinate federal efforts to combat fraud involving government programs and other forms of financial misconduct. As the division grows and assumes additional responsibilities, stakeholders are monitoring how it will pursue enforcement activities and coordinate with other federal agencies.

                             

                            Why This Matters for Providers

                            Although these proposals may face a challenging legislative path, they reflect a broader and growing emphasis on fraud prevention, program integrity, oversight, and enforcement across federal health and human services programs. For LSA members and other providers, these developments could eventually influence documentation requirements, provider screening, audits, data-sharing expectations, and program oversight activities. We will continue monitoring these proposals and related administrative actions as implementation of H.R. 1 and other federal policy changes move forward.

                            Bipartisan Nonprofit Protection Measures Proposed 

                            Several recently introduced bipartisan bills could have implications for nonprofit organizations across the sector by reinforcing due process protections and clarifying the legal status of tax-exempt entities. In July, the Senate Finance Committee advanced legislation (the Taxpayer Assistance and Service (TAS) Act) that would codify a nonprofit organization's right to appeal IRS decisions denying or revoking tax-exempt status and require the IRS to notify organizations of those rights. Similar House legislation, the Protecting the Rights of Organizations Fairly (PROOF) Act of 2026, would go further by establishing statutory procedures the IRS must follow before taking adverse action, including requirements related to notice, evidence, and access to appeals.

                             

                            Clarifying the Limits of Federal Oversight

                            Lawmakers have also introduced the Safeguarding America's Nonprofits Act, which would address an emerging legal theory that tax-exempt status itself constitutes a form of federal financial assistance. The bill would clarify that organizations that do not receive federal funding should not be treated as federal funding recipients solely because they are tax exempt. The proposal is similar to legislation introduced in a previous Congress but has been reintroduced using a different legislative strategy and with bipartisan support.

                             

                            Now What?

                            Together, these proposals seek to incorporate key nonprofit protections into federal statute rather than relying on IRS policies and guidance that can be revised administratively. While prospects remain uncertain, the bills reflect growing Congressional interest in the governance, oversight, and legal protections afforded to tax-exempt organizations. For LSA members and other nonprofit providers, these developments could affect how nonprofit status is regulated, challenged, and protected in the future. We will continue to monitor and share relevant updates.

                            Congress Debates AI Regulation

                            Bipartisan Interest in AI Oversight

                            Artificial Intelligence (AI) remains one of the few areas where bipartisan cooperation is gaining traction in Congress. In recent weeks, lawmakers from both parties have renewed efforts to establish federal guardrails for AI, citing concerns about increasingly powerful AI systems and reports from current and former AI industry employees warning about potential risks.

                             

                            New proposals include legislation from Sens. Josh Hawley (R-MO) and Richard Blumenthal (D-CT) to create a federal program to assess and monitor AI systems, as well as bipartisan House initiatives focused on AI safety and oversight, and ensuring small businesses have a voice in future AI policymaking.

                             

                            Congress Divided on the Path Forward

                            Despite growing bipartisan interest, significant differences remain regarding the appropriate level of federal regulation. With the House on recess until after the mid-term elections, we will continue to monitor as debate resumes.

                             

                            Implications for Providers

                            AI's ability to support clinical decision-making, streamline administrative tasks, improve care coordination, and help address persistent workforce shortages holds promise. At the same time, important questions remain regarding accuracy, patient privacy, cybersecurity, liability, and appropriate oversight as AI tools become more integrated into care delivery and operations

                            What We Are Reading 

                             

                            COMMENTS OPEN NOW

                            •  The Census Bureau is seeking public comments on a proposed rule that would set criteria for who is counted in the decennial census and restrict the demographic questions that may appear on the short form. Under the proposal, lawful permanent residents would be counted for apportionment, while people without lawful status and those whose legal status is less durable would be excluded. Questions about race, ethnicity, and sexual orientation would be prohibited on any questionnaire used for enumeration. Comment deadline: October 13.

                            CHILDREN, YOUTH, AND FAMILIES

                            •  The Administration for Children and Families announced over $225 million in Head Start supplemental awards to strengthen nutrition services, improve facilities, and address one-time program needs. The awards include $89 million in supplemental nutrition funding for more than 400 Head Start grant recipients, building on HHS's 2025 investment of $62 million in supplemental nutrition funding for over 290 programs.

                            HEALTH SYSTEMS/INDUSTRY

                            • What high-acuity outpatient care means for system revenue | Modern Healthcare: Health care systems are focusing on moving high-cost procedures to outpatient facilities, requiring high up-front investment. Outpatient systems are offering value-based payment opportunities, motivating the shift—although it requires integration across systems, and ability depends on the size of the health system.

                            • Democrats Demand Trump Administration Halt Collection of Patients' ER Records | KFF Health News: A group of Democratic lawmakers call for end of a new surveillance program that would collect personal information in the emergency room.

                            • InnovAge CEO: Health system partners fuel PACE growth | Modern Healthcare: Partnerships with Tampa General and Orlando Health are reducing unnecessary ER visits and shortening nursing facility stays, and InnovAge is weighing more joint ventures, acquisitions, and expanded AI use as it grows into new states.

                            • So You Want To Become A Health Center | NACHC: A Guide for organizations who are interested in becoming part of the federal Health Center Program

                            RURAL HEALTH

                            • The Health Resources and Services Administration awarded $11.2 million to develop 15 new physician residency programs in rural communities across 14 states. The Rural Residency Planning and Development Program awards will create residencies in family medicine, internal medicine, preventive medicine, psychiatry, and general surgery, strengthening the health workforce in rural and tribal communities.

                            • A Closer Look at the $50 Billion Rural Health Transformation Program | KFF

                            • States Bet Big on Rural Health Startups, With a Silicon Valley Twist | KFF Health News: Louisiana and at least seven other states are using Rural Health Transformation Program dollars to seed rural health tech startups, and Louisiana’s fund drew more than 200 pitches.

                            • Strengthening Rural Behavioral Health Care Access Through a Community-Based Workforce | CHCS Webinar: On October 13, 2026, rural providers and health systems in Georgia, North Carolina, and Tennessee will share practical lessons from building community-based health workforces

                            • Keeping Patients with Confidence: Using Telehealth to Treat Patients in Rural Georgia | ASPR TRACIE: An interview on Georgia’s Digital Care Network, which connects about a third of the state’s rural hospitals to around-the-clock virtual specialists and has cut patient transfers from roughly 90% to 27%

                            • Rural Hospital Stabilization Program (RHSP)| Rural Health Information Hub: A free technical assistance program for rural hospital seeking to improve their financial stability by expanding services that meet community needs; applications are accepted on an ongoing basis.

                            • Rural Transformation Plans Bolster Community Paramedicine Programs | Healthcare Innovation

                            AI/TECH/INNOVATION

                            • How AI Is Reshaping Private Equity's Healthcare Strategy | Modern Healthcare

                            • From Innovation to Implementation: Replicable Community-Based Care Models for Aging in Place | AARP Public Policy Institute

                            MEDICARE

                            • GOP aims to change Medicare adviser's math so it's more favorable to health insurers | STAT 

                              Support for Chronic Health Conditions | CMS: Starting in spring 2027, CMS will offer technology-supported care to Original Medicare beneficiaries with heart failure, COPD, substance use disorders, or nicotine dependence to help them manage their health at home.

                            • New Records Reveal Problems with Medicare's AI Prior Authorization Experiment | Electronic Frontier Foundation: FOIA records on WISeR, Medicare's AI prior authorization pilot, show care denials, widespread technical problems, and reports of patient harm.

                            MEDICAID

                            • The Medical Frailty Rule is Illegal and Irrational; the Consequences for Medicare are Profound | Milbank Memorial Fund: Research article from healthcare and aging researchers focused on the impact of loss of Medicaid due to work requirements on older adults as they enter the Medicare program.

                            • CMS to Expand ACCESS Model | Modern Healthcare

                            • United States of Care (USofCare) has launched a two-year study following Medicaid enrollees' through work reporting requirements, and is asking partners to share flyers, especially in the states listed below:

                                • Idaho
                                • Missouri
                                • North Carolina
                                • Pennsylvania
                                • West Virginia

                                      • Insurer revenue squeezed as states curb Medicaid for immigrants | Modern Healthcare

                                      • CMS Offers States a Medical Frailty Framework, But Not a Safe Harbor | The 80 Million

                                      • Dissecting the Deepest Cuts: New Restrictions on Raising Revenue for State Medicaid Budgets: H.R. 1's Provider Tax Limitations and CMS' Proposed Rule | Families USA

                                      HOUSING

                                      • The poorest in the US can't find housing even as low-income units sit empty | Yahoo News

                                      • The Promise of Place: Surplus Church Property as a Vehicle for Affordable Housing | Catholic Charities USA

                                      • What ROAD To Housing Act Means For Affordable Development | Forbes: Housing experts call the newly signed “ROAD to Housing” important groundwork but say that it’s not enough on its own, pointing to additional legislation such as the Neighborhood Homes Investment Act and the Yes in God’s Backyard Act.

                                      BEHAVIORAL HEALTH

                                      • HHS Awards More Than $380 Million to Strengthen America's Behavioral Health System on 988 Day | HHS

                                      FEDERAL BUDGET AND ECONOMIC SECURITY

                                      • Introduction to Budget "Reconciliation" | Center on Budget and Policy Priorities

                                      • New Census Data Underscore Importance of Food Assistance and Health Coverage Access: Statement of Sharon Parrott, CBPP President, on 2025 Census Data | Center on Budget and Policy Priorities

                                          For more information, please contact Sarah Dobson, Senior Director of Public Policy and Advocacy.

                                          Lutheran Services in America, one of the nation’s largest networks of health and human service providers, is rooted in more than a century of faith-based commitment to service. Its 300 nonprofit organizations operate in 1,400 communities across 45 states, Washington, D.C., and the U.S. Virgin Islands with more than 250,000 dedicated employees nationwide, reaching more than 7 million people each year. Together, they improve outcomes for children, youth and families, support the independence and dignity of older adults, champion full and meaningful lives for people with intellectual and developmental disabilities, and strengthen stability and purpose for veterans and others. Lutheran Services in America brings together a broad network of leaders, partners and stakeholders to catalyze innovation, grow and strengthen organizational capacity, and amplify our united faith-based voice to drive social sector change that advances health and opportunity for all.

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