Bill would expand intergenerational-care grants to nursing homes and assisted-living facilities to use existing funds

Senator Dan Quick told the Health and Human Services Committee that LB721 would refine the intergenerational care facility incentive grant program created in 2024 by LB904. The bill would (1) allow nursing homes and assisted-living facilities to apply for expansion grants, and (2) clarify eligibility so for-profit facilities serving Medicaid populations can access resources.

Quick said the program has not reached its intended uptake: "Despite 5 rounds of applications last year, only $100,000 have been awarded to a single applicant in early 2025," he told the committee, and he called out administrative restrictions that limited eligible applicants. Mitchell Clark of First5 Nebraska testified that DHHS administratively restricted for-profit facilities during the second RFA even though statute's definitions (citing section 38 dash 24 14) include proprietary nursing homes.

Jalene Carpenter, president and CEO of the Nebraska Health Care Association, said members told her the main barrier was the program's original focus on startup costs and the $100,000 maximum, which made expansion and meaningful building modifications impractical. Carpenter noted DHHS's grant page still listed an open application window to Feb. 12, implying there may still be available funds from the $300,000 appropriation.

Committee members raised concerns about the long-term sustainability of the Medicaid Managed Care Excess Profit Fund from which the grant was originally appropriated and whether unspent funds remain available. Senator Hardin cautioned sponsors to consult fiscal staff; Quick and proponents argued the bill is necessary to unlock appropriated funds to serve young children and older residents through co-located services.

There was no recorded committee vote during the hearing; proponents urged the committee to advance LB721 so the funds can be used.