Funding delays have pushed several community health centers nationwide to close or cut back on staff, citing issues accessing federal funding. The financial problems, the centers say, appear to stem from last week’s temporary domestic funding grant freeze and the implementation of new executive orders. Many grant programs, including Head Start and Title X, continue to experience financial shortfalls despite an injunction issued against the freeze. The community health center funding issues come as Elon Musk’s Department of Government Efficiency (DOGE) has targeted programs, grants and even entire agencies across the administration that it believes are not an efficient use of government funding. A White House spokesperson said the Department of Health and Human Services (HHS) and the administration are aware of the problem, and that it isn’t related to DOGE. The system is up and running now, but some users are experiencing lags because of high volume of requests, which HHS is working to resolve, the spokesperson said. Click here to learn more.
Healthcare Workforce, Rural Healthcare Access Featured in Pennsylvania Governor’s Budget Proposal
On Tuesday, February 4, Gov. Josh Shapiro delivered his annual budget address to the Pennsylvania General Assembly. Gov. Shapiro’s budget proposal serves as the initial step in a months-long budgeting process, but its most important purpose is a statement of the Shapiro administration’s priorities this year. Following are highlights of the governor’s address that may have notable impacts on Community Health Centers:
Addressing Rural Health Care Worker Shortages – Specific proposals include:
• $5 million to support workforce initiatives to educate, train, and recruit nursing professionals.
• Increase base funding by $20 million to counties to provide critical behavioral health services and address deepening workforce shortages. This is the third year of the administration’s three-year commitment to invest $60 million into the county behavioral health system.
• $15 million in new funding for the Primary Health Care Practitioner program. Of this $10 million to expand the Primary Care Loan Repayment Program, broadening the program’s geographic eligibility requirements and supporting behavioral health care workers in all regions of Pennsylvania. An additional $5 million would be used to expand programs to address workforce shortages specific in rural areas.
• Supporting full practice authority to nurse practitioners who work under a licensed physician for at least three years. This legislation has passed the State Senate in previous years but has not cleared the House of Representatives.
Investing in Apprenticeships and Other Paths to Success
Many CHCs in Pennsylvania are now offering apprenticeships and other forms of on-the-job training. The governor’s proposal includes:
• A dedicated $12.5 million Workforce and Economic Development Network appropriation, leveraging $10 million in existing funds and $2.5 million in new state funds to train additional workers.
• $2 million for the creation of the Career Connect program, a statewide program to build internships at Pennsylvania employers.
Addressing Structural Challenges at Rural Hospitals
The Governor convened a rural health care working group in 2023 (including several PACHC members and staff) to find a solution to this problem. Based on those conversations, the Governor’s proposed budget:
• Leverages a $10 million investment to draw down an additional $26 million in federal matching funds to provide immediate relief to Pennsylvania hospitals.
• Invests another $10 million in state funds to help meet rural hospitals’ needs.
• Adds $20 million for a new appropriation – ‘Patient Safety and Support for Hospitals’ – to “address barriers to care” at all hospitals.
Continuing to Make Mental Health Reforms
The Governor is calling on the General Assembly to send a bill to his desk that closes a loophole that allows insurance companies to deny coverage for mental health services provided to students inside the walls of a school, even though those same services would be covered in a mental health professional’s office across the street.
Transitions from Incarceration
The budget proposal also includes $4.8 million to provide Medical Assistance coverage for individuals transitioning from incarceration to the community. This is one of the federal 1115 waiver components (“Keystones to Health”) approved by CMS.
PA Oral Health Coalition Provides Update on State Legislation
The 2025-2026 legislative session in Pennsylvania commenced on January 6, 2025. Once again, the state operates under a split legislature, with Republicans maintaining control of the Senate and Democrats hoping to retain their slim majority after the special election to fill one seat.
Legislative Activity and Key Bills
Lawmakers in Harrisburg have actively introduced and advanced numerous bills. In alignment with the 2025 Policy Agenda, PCOH has been monitoring several key pieces of legislation, including:
- SCO 108 – Restoring Dental Coverage for Medical Assistance Recipients.
- HCO 284 – Advisory Opinions from Licensing Boards.
- SB 81 & HCO 721 – Legislation authorizing Pennsylvania to join the Dentist and Dental Hygienist Compact and outlining its structure.
- HCO 1412 – American Association of Dental Boards Dental & Dental Hygiene Compact Legislation.
- HB 157 – Establishing grant awards for entities in rural counties and designated medically underserved areas to address practitioner education debt. As of 2/5/2025, this bill was unanimously amended by the House Health committee to include dentists and dental hygienists as eligible awardees and passed out of committee with unanimous support.
Governor’s Budget Address
On February 4, 2025, Governor Josh Shapiro delivered his third budget address. The Governor shared that “Pennsylvania is on the rise” as he proposed a budget with dedicated funding to address healthcare workforce issues and healthcare cost transparency. While it does not appear that funding to restore the comprehensive dental benefit is openly included in the DHS program budget, PCOH will continue to advocate for this need as the General Assembly prepares to commence budget hearings and negotiate budget priorities.
Federal Developments and Impact on Pennsylvania
With the beginning of President Trump’s second term, significant federal activity has raised concerns regarding dental care access in Pennsylvania. A recent executive order freezing federal funding caused temporary disruptions in state Medicaid portal access. Although a U.S. District judge has blocked this freeze, uncertainty remains about the future of federal funding for state-funded programs. Any reductions at the federal level could impact critical services for under-resourced communities
across Pennsylvania.
Additionally, hearings are underway to determine the composition of President Trump’s cabinet, including the Secretary of Health and Human Services. President Trump has nominated Robert F. Kennedy, Jr. for the role, a decision met with opposition from various public health and medical organizations due to his controversial stance on vaccines and community water fluoridation. The Senate Finance Committee approved his nomination in a narrow 14-13 vote, sending it to the Senate floor for final consideration.
PCOH will continue monitoring these legislative and policy developments to ensure Pennsylvanians maintain access to essential dental care services.
PA Broadband Authority Encourages BEAD Applications
Despite the uncertainties surrounding potential changes to federal programs that support the PBDA’s mission to expand broadband access and bridge the digital divide across the Commonwealth, Pennsylvania remains steadfast in its commitment to delivering the transformative broadband investments that have already been secured under federal law. The PBDA, in coordination with its federal partners and the Governor’s Office, is actively monitoring developments as they unfold.
If you’re a current grantee, please continue to follow these essential grant management practices:
- Submit timely reimbursement requests. Only request reimbursement for costs that have already been incurred and ensure all required documentation is included.
- Stay in regular communication. Contact your grant manager or email pabroadbandauthority@pa.gov for general inquiries.
If you’re planning on applying for the Broadband Equity, Access, and Deployment (BEAD) program please note that Application Period One closes Friday, February 7th.
New Reports! Power of Partnership in Strengthening the Philadelphia Fed Regional Economy
On behalf of the Philadelphia Fed, thank you for your continued partnership and the important work that you do to support a strong economy. We strive to be a resource to you through our data-driven research, ongoing community engagement, and ability to convene stakeholders around shared solutions to economic challenges. Our work in 2024 included:
- a comprehensive update to the Occupational Mobility Explorer, which now includes nearly 600 job titles across more than 500 U.S. locations. This resource allows users to explore career paths and visualize how job skills needed for specific occupations can transfer to higher-paying occupations in the same geographical area.
- launching the Banking Deserts Dashboard to provide insight into regions and communities that do not have local bank branches. This tool is part of ongoing research by the Federal Reserve Banks of Cleveland and Philadelphia to better understand how the decline of bank branches across the nation may be impacting low-income communities.
- advancing a national conversation about the importance of hospitals and higher education institutions to local economies. The 2024 Anchor Economy Conference highlighted research on the economic impacts of anchor institutions in regions and engaged community leaders, researchers, and experts in a meaningful discussion about anchor economies. Our ongoing Anchors for Equity Research in Action Labs are also exploring how to leverage partnerships with anchor institutions in local workforce development efforts.
As we look ahead, we’re excited to host the Economic Mobility Summit in Philadelphia on April 22 and 23, 2025. We aim to bring together community leaders, policymakers, researchers, experts, advocates, and others from across the nation to highlight the importance of economic mobility to the U.S. economy; identify ways to advance research into actionable strategies; and elevate best practices for community-led, cross-sector collaboration that can increase economic opportunity and mobility in regions. We encourage you to register and reserve your seat today!
As always, we will keep you updated with the latest events, research, and ways to engage with us and the Federal Reserve System in the months ahead.
Why Oral Health Needs a Home in Medical Education
The Academy at Harvard Medical School is hosting “Why Oral Health Needs a Home in Medical Education” this Thursday, January 30th at 5 pm ET as part of their Medical Education Grand Rounds series. They will cover the importance of oral health content in undergraduate and graduate medical education, review the history of medical-dental education, and preview future opportunities.
U.S. Celebrates 80 Years of Community Water Fluoridation
The United States celebrated 80 years since water fluoridation was initiated in Grand Rapids, Michigan. Join PCOH and the 100+ reputable international health and science organizations in recognizing and celebrating the amazing impact that water fluoridation continues to have. Please consider taking action to promote the benefits of fluoridation so that we can celebrate the next milestone.
Here’s three ways you can take action:
- Join the Statewide Water Action Team (SWAT) and notify PCOH when you hear rumblings about water fluoridation in your local community.
- Review the linked talking points so that you are prepared when talking with others about water fluoridation in the news.
Share printed and electronic resources with patients, colleagues, and community members so that they are aware of the benefits of and science behind fluoridation and fluoride treatments.
Fact Sheets Show Children Enrolled in Medicaid and CHIP by Legislative District
In every community across Pennsylvania, Medicaid and the Children’s Health Insurance Program (CHIP) play a big role in keeping kids covered and healthy.
Through these public health insurance options, nearly half of all Pennsylvania children have access to check-ups, doctor recommended screenings, vaccinations and much more.
Our annual fact sheets provide a breakdown of the more than 1.3 million Pennsylvania children enrolled in Medicaid and CHIP within each legislative district.
PPC uses these fact sheets to educate members of Pennsylvania’s Congressional delegation, state House, and state Senate about the critical role of Medicaid and CHIP in providing families with high-quality, affordable health care for both physical and mental health.
Access the fact sheets here.
According to a new report from Georgetown University’s Center for Children and Families, children in Pennsylvania’s small towns and rural communities depend on Medicaid just as much as children in Pennsylvania’s urban communities. And it shows that Pennsylvania adults and seniors in rural communities are insured through Medicaid at higher rates than their urban counterparts.
This is especially important given most of Pennsylvania’s counties are considered rural. In fact, Pennsylvania ranks 5th highest in the country for the number of people living in small towns and rural areas.
Any large cuts to Medicaid that are currently being considered would pose very serious threats to residents and their health care systems in rural communities that are already struggling.
Pennsylvania relies on federal Medicaid funding to thrive. Federal cuts to Medicaid would shift the burden onto Pennsylvania’s budget and lead to higher uninsured rates among our kids, seniors, pregnant women and people with disabilities.
Read the coverage: Proposed Medicaid Cuts Threaten Rural PA Residents, Hospitals
Frequently Asked Questions for Consumers Whom the Federally-facilitated Marketplace or State-based Marketplaces on the Federal Platform Refers to a State Medicaid/Children’s Health Insurance Program (CHIP) Agency (SMA) and Who are Awaiting a Final Medicaid or CHIP Eligibility Determination from their SMA
The FAQ applies to consumers who were referred by the Marketplace as potentially eligible for Modified Adjusted Gross Income (MAGI)-based Medicaid/CHIP and were referred to their SMA, and who are waiting for their SMA to conduct a final MAGI-based Medicaid/CHIP eligibility determination. This can occur in households where all applicants are found by the Marketplace as potentially eligible for Medicaid/CHIP or in households where some applicants are found eligible for Marketplace coverage and others are potentially Medicaid/CHIP-eligible. Households in the latter scenario will have qualified health plan (QHP)-eligible applicants routed to enroll in coverage with the Marketplace, and applicants assessed as Medicaid/CHIP-eligible will have their application information securely electronically transferred to their SMA for final eligibility determinations and/or enrollment, if eligible. The FAQ can be used to assist consumers navigating these various scenarios.
See FAQs Consumers the FFM Refers to Medicaid and CHIP Agencies.pdf for frequently asked questions.
CHCs Help Low Income Patients with Rising Insulin Prices
Following Wednesday’s article about Apexus (the 340B Prime Vendor), The New York Times published a second article about 340B this week, focusing on how drops in the sticker price for insulin have impacted CHCs and their low-income patients. The article explains how lower “sticker prices” caused 340B prices for insulin to skyrocket last year, and how this has affected CHCs patients and operations. While the human impacts of these changes can be devastating, the article clearly shows how CHCs are good stewards of the 340B program, using it to expand access to affordable medications and other important services to low-income patients. For this reason, we advise CHCs to keep this article handy to share with policymakers.