HB1106: HB1106 Nursing Home Supplemental Fund; establish and provide a purpose

Georgia nursing homes that lose a large chunk of revenue when federal Medicaid funding is cut or reduced currently have no dedicated state backstop. This bill would add a new section to Georgia law (O.C.G.A. § 31-2-20) creating the Nursing Home Supplemental Fund, run by the Department of Community Health, to provide financial assistance such as loans, loan guarantees, and grants to financially distressed nursing homes. The department would set eligibility rules requiring nursing homes to document actual revenue losses of more than $1 million in a fiscal year directly tied to a cut or elimination of federal Medicaid funding on or after July 4, 2025. The department could seek outside grants or funds for the program, must create an application process, and would submit annual reports to the Governor and legislature starting October 1, 2027. The law would only take effect if the General Assembly passes a specific budget line item fully funding it, and it would automatically repeal on December 31, 2031 if that funding never happens.

• Creates the Nursing Home Supplemental Fund inside the Department of Community Health to give loans, loan guarantees, and grants to struggling nursing homes.
• Requires nursing homes to show revenue losses over $1 million in a fiscal year directly caused by reduced or eliminated federal Medicaid funding on or after July 4, 2025 to qualify.
• Authorizes the department to apply for and use outside grants or funds, and to set eligibility criteria and an application process for the fund.
• Requires the department to submit an annual report on the fund's administration to the Governor and legislature starting October 1, 2027, published on its website.
• Makes the entire law contingent on a specific budget appropriation fully funding it, and repeals it automatically on December 31, 2031 if that funding never occurs.

Financially distressed nursing homes and their residents, the Department of Community Health, which would run the fund, and the Governor and General Assembly, who would need to appropriate specific funding for the program to take effect.

Nursing homes hit hard by federal Medicaid funding cuts could apply for state loans, loan guarantees, or grants to stay financially stable, potentially affecting continued care for residents. But the program only becomes real if lawmakers later approve dedicated funding for it.

• Section 1 adds O.C.G.A. § 31-2-20, defining 'fund' and 'nursing home' for purposes of the new program.
• Subsection (b) establishes the Nursing Home Supplemental Fund to provide loans, loan guarantees, and grants to financially distressed nursing homes.
• Subsection (c) directs the department to seek outside funding, set eligibility criteria requiring documented losses over $1 million tied to Medicaid funding cuts since July 4, 2025, and create an application process.
• Subsection (d) requires annual reports to the Governor and General Assembly starting October 1, 2027, published on the department's website.
• Subsection (e) authorizes the board to adopt rules and regulations to implement the fund.
• Section 2 makes the Act effective only if a specific appropriations line item fully funds it, and repeals the law by December 31, 2031 if no such funding occurs.

1. 2026-02-03House Second Readers (House)
2. 2026-02-02House First Readers (House)
3. 2026-01-29House Hopper (House)

• Bryce Berry (D, HD-056)Primary sponsor
• Tanya Miller (D, HD-062)
• Samuel Park (D, HD-107)
• Imani Barnes (D, HD-086)
• Karla Drenner (D, HD-085)
• Teddy Reese (D, HD-140)

• nursing homes
• Medicaid funding
• health care financing
• state grants and loans