BABIES Act

The BABIES Act (S 1598) creates two main programs to expand access to independent birth centers. First, it provides grants of $300,000-$500,000 per year to up to 15 accredited birth centers in underserved areas (e.g., maternity care shortage zones) for facility upgrades, equipment, or accreditation costs ($5 million total over 2026-2030). Second, it launches a Medicaid demonstration program testing new payment models for birth centers serving low-risk pregnant women enrolled in Medicaid, requiring centers to meet strict accreditation, licensure, and care coordination standards. This directly affects birth centers seeking expansion, Medicaid recipients in underserved communities, and states developing payment systems for birth center services.