The Centers for Medicare and Medicaid Services (CMS) has notified states that they have the option of using an additional year (through March 31, 2025) to spend the funding made available by the American Rescue Plan (ARP) to enhance, expand, and strengthen Home and Community Based Services (HCBS).

This option would not change the amount of funding available to support the initiatives detailed in AHCCCS’ ARP HCBS spending plan. It would simply extend the time that the agency has to expend the available funding.

AHCCCS is currently exploring the option made available by CMS to determine whether extending the spending time frame is in the best interest of members and providers.

American Rescue Plan Allocations

AHCCCS is working to implement the recently passed federal law, American Rescue Plan Act of 2021 (ARPA). ARPA is an emergency legislative package to fund vaccinations, provide immediate, direct relief to families impacted by the COVID-19 public health emergency, and support struggling communities.

Mobile Crisis Services Image Ten Percent FMAP HCBS Image SAMHSA Block Grant Image

Home and Community Based Services Enhanced Federal Match

The Home and Community Based Services Enhanced Federal Match provision allows states to supplement, not supplant, existing funding. States must submit initial HCBS spending plans to CMS by July 12, 2021 to meet federal guidance and timelines. Due to ongoing stakeholder input, AHCCCS will post the draft spending plan draft no later than July 12, 2021. The draft spending plan is subject to CMS approval. AHCCCS is permitted to update its initial draft spending plan through the quarterly spending plan submission requirement based on Arizona's needs.

Services Eligible to Claim the ARPA 10 Percent FMAP Increase

  • Rehabilitative Services (including mental health and substance use disorder services)
  • Private Duty Nursing
  • Alternative Benefit Plans
  • Home Health Care
  • Personal Care Services
  • Self-Directed Personal Care Services
  • Case Management
  • School Based Services

The funding is short-term and must be spent by March 31, 2024 (3 years). These efforts cannot negatively impact current HCBS; it can only add programs, services, and activities that are completed by March 2024 or have an additional plan for funding or sustainability beyond March 2024.

Stakeholder Meetings

Topic: ARPA HCBS Plan Submission

Topic: Introduction of HCBS Funding Opportunity

ARPA HCBS Spending Plan

SAMHSA Block Grants to Address Addiction, Mental Health Crisis

ARPA also allocated additional SAMHSA Mental Health Block Grant (MHBG) and Substance Abuse Block Grant funding of a total of $71 million to Arizona. SAMHSA encourages states to consider a focus on support of a behavioral health crisis continuum.

See “Recent Award Decisions” on the Grants web page for the status of decisions.

ARPA MHBG/SABG Spending Plan

Stakeholder Meetings

Topic: Introduction of SAMHSA Grant Funding Opportunity

Mobile-Crisis Services Grant Funding

ARPA authorizes $15 million for state planning grants to be awarded by the HHS Secretary as soon as practicable. It also creates a state option to cover community-based mobile crisis intervention services with 85 percent federal matching funds.


AHCCCS has analyzed a recent State Health Official Letter (#21-008), which provided federal guidance on the increased FMAP for mobile crisis intervention services available under ARPA. We are currently in discussions with federal partners on how best to address topics such as telehealth integration and the size of mobile crisis intervention teams.

Public Input Welcomed

AHCCCS welcomes public input on proposed ARPA spending plans. Submit comments by email to

Other ARPA Resources