PHOENIX, AZ - On Monday January 27, 2025, the federal Office of Management and Budget (OMB) released a memo pausing all disbursement of federal assistance and grants.
Since the release of this memo, a number of multistate actions have been taken, including lawsuits, resulting in a temporary administrative stay on the funding freeze until 5 p.m. (ET) on February 3. The memo has since been rescinded, but AHCCCS will continue to follow this issue closely.
AHCCCS was unable to access the Federal Payment Management System (PMS) – the system that allows AHCCCS to receive federal funds that are used to cover member services – for a few hours on January 28. Fortunately, the agency’s access was restored at around 1 p.m. the same day.
On January 29, AHCCCS did receive its funding from the January 28 draw, and AHCCCS has been back to normal payment cycles since January 30th. Additionally, we are testing to ensure that we are able to draw for all AHCCCS discretionary grants. To date, AHCCCS can confirm that it is able to receive federal funding for the following: Title XIX (Medicaid), Title XXI (KidsCare/CHIP), Community Mental Health Services Block Grant (MHBG) and MHBG American Rescue Plan Act (ARPA), Substance Abuse Block Grant (SABG) and SABG ARPA, State Opioid Response IV Grant (SORIV) and the Pregnant and Postpartum Women Pilot Grant (PPWPLT).
New developments continue to emerge, and we are closely monitoring updates and the pending litigation in coordination with other agencies. AHCCCS is doing everything we can to understand the full impacts of these changes and is completing an analysis to ensure compliance with the federal memoranda and orders. We will continue to share more information and provide clarity as we receive it.
AHCCCS remains committed to working with our health care partners and providers to provide Arizona’s Medicaid population with the care and services they need.
Founded in 1982, the Arizona Health Care Cost Containment System (AHCCCS) is Arizona's Medicaid agency that offers health care programs to serve Arizona residents. Built on a system of competition and choice, AHCCCS operates under an integrated managed care model, through a Research and Demonstration 1115 Waiver. Contracted health plans coordinate and pay for physical and behavioral health care services delivered by more than 100,000 health care providers to more than 2 million Arizonans.
