The BABIES Act expands access to freestanding birth centers by creating two complementary federal programs totaling approximately $32 million. First, it establishes a $5 million grants program that awards between $300,000 and $500,000 to up to 15 birth centers annually from 2026-2030 to help with facility improvements and accreditation, prioritizing centers in areas with maternity care shortages. Second, it creates a 4-year Medicaid demonstration program funded at $27 million that allows up to 6 states to cover freestanding birth center services for low-risk pregnancies, with the federal government reimbursing states at enhanced rates. The bill requires the Secretary of Health and Human Services to develop new payment models within one year and mandates states to report annually to Congress on how birth center outcomes and costs compare to traditional hospital maternity care. Overall, the legislation is designed to increase birth center availability and affordability for women seeking alternative maternity care options, particularly in underserved communities.
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