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HB 2560

In Committee

House

Pediatric transitional care

Concerning facilities licensed to provide pediatric transitional care services.

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: January 18, 2026
Last Action: January 19, 2026
Status: H HC/Wellness
Companion Bill:

AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesPeople-leaningCorporate & Wealthy Interests

This bill establishes a new funding and regulatory framework to support residential care for infants exposed to harmful substances before birth and their families. It aims to keep infants with their parents in a therapeutic setting instead of prolonged hospital stays, promote bonding, and reduce reliance on foster care—using a combination of Medicaid funding, state grants, and updated licensing rules.

  • Creates a new bundled funding model for pediatric transitional care services, combining federal and state resources to support residential care for substance-exposed infants and their families.
  • Requires the Health Care Authority to submit a state plan amendment to the federal Centers for Medicare & Medicaid Services by July 1, 2027, to allow Medicaid payments to residential pediatric recovery centers.
  • Mandates the Department of Children, Youth, and Families to develop and implement a bundled funding model for nonmedical services (e.g., parenting coaching, dyadic therapy, respite, case management) by July 1, 2027.
  • Expands the definition of "pediatric transitional care services" to include both medical and nonmedical, wraparound support for substance-exposed infants and their parents, and updates eligibility criteria to focus on infant developmental response rather than just age or exposure.
  • Requires weekly infant assessments to determine continued need for care and establishes new rules for parent-infant bonding (e.g., visitation timelines, on-site accommodations, caregiver training).

Who is affected

  • Substance-exposed infantsInfants born with prenatal substance exposure (e.g., to opioids, methamphetamines, alcohol, etc.) who require specialized medical and nonmedical care after birth, particularly those experiencing neonatal abstinence syndrome or withdrawal symptoms.
  • Parents/caregivers of substance-exposed infantsParents or caregivers of substance-exposed infants, especially those in recovery, who benefit from on-site support, parenting education, and opportunities to bond with their infants in a residential setting.
  • Pediatric transitional care facilitiesResidential pediatric recovery centers (also called pediatric transitional care facilities) that provide wraparound services to infants and families; these facilities may receive new funding and regulatory support under the bill.
  • State agencies (Health Care Authority and DCYF)State agencies—including the Health Care Authority and Department of Children, Youth, and Families—that must develop new funding models, rules, and reporting requirements under the bill.
Effective: July 1, 2026Fiscal impact: The bill authorizes use of existing resources—including potential funding from the opioid abatement settlement account—to support grants for the pilot facility until a new bundled funding model is implemented by July 2027. The fiscal impact depends on future legislative appropriations and federal Medicaid approval; no specific dollar amount is identified.Sunset: December 31, 2028
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 20, 2026 at 2:24 AM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)
  • The bill explicitly prioritizes keeping infants with parents in a therapeutic, nonhospital setting—supported by evidence from the pilot project showing 88% of parents remained in recovery, in custody, and housed. By mandating dyadic services, on-site accommodations, and caregiver training, it directly supports parent-infant bonding, reduces foster care entry, and improves long-term developmental outcomes for vulnerable infants.

    HealthcarePeopleRef: Sec. 1(2), Sec. 3(2), Sec. 6(13)
  • The creation of a bundled funding model—including federal Medicaid reimbursement via state plan amendment and state-level coordination between HCA and DCYF—has the potential to create a sustainable, scalable financing mechanism. This could significantly reduce long-term public costs by avoiding prolonged NICU stays and foster care placement, while expanding access to evidence-based care for families who currently fall through service gaps.

    HealthcarePeopleRef: Sec. 2(1), Sec. 3(1)
  • Mandating weekly parent-infant visitation timelines, dyadic bonding training, and education on secondary opioid exposure directly supports trauma-informed care and reduces child maltreatment risk. These provisions help stabilize families during a high-vulnerability period, decreasing the likelihood of child welfare reentry and promoting long-term family preservation.

    Public SafetyPeopleRef: Sec. 6(9), Sec. 6(13)(c), Sec. 6(13)(l)
  • By requiring facilities to provide room and board for parents and to support housing stabilization, the bill addresses a critical barrier for families in crisis. This reduces homelessness risk during a time of heightened vulnerability and enables continuity of care—especially vital for parents experiencing housing instability or fleeing domestic violence.

    HousingPeopleRef: Sec. 5(2)(b), Sec. 6(13)(a), Sec. 6(13)(i)
  • The establishment of staffing ratios (e.g., one trained caregiver per four infants) and mandatory background checks for all staff and volunteers enhances safety and quality of care. While not a major fiscal burden, these requirements improve oversight and reduce the risk of neglect or abuse in residential settings—benefiting both infants and families.

    Public SafetyPeopleRef: Sec. 6(3)(c), Sec. 6(12)
Potential Concerns (5)
  • The bundled funding model for nonmedical services (e.g., parenting coaching, dyadic therapy, respite, case management) is contingent on 'amounts appropriated for this specific purpose' and subject to future legislative action, creating uncertainty about whether services will be widely available beyond the pilot facility. This risks leaving many families without access despite clear need, especially in rural or under-resourced regions where facilities may not be established.

    HealthcarePeopleRef: Sec. 3(1)
  • While the bill authorizes grants to the pilot facility until the bundled model is implemented, it does not require or fund permanent housing support for families after discharge. Without guaranteed post-discharge housing assistance, families—especially those in unstable housing situations—may face increased risk of homelessness or instability once the residential stay ends, undermining long-term outcomes.

    HousingPeopleRef: Sec. 2(3)
  • The requirement that facilities provide wraparound services to parents *regardless of whether the parent resides on-site* expands operational scope and liability for facilities without specifying additional staffing, training, or funding for off-site support. This may strain small or under-resourced facilities, potentially compromising service quality or leading to facility closures—reducing access for families in need.

    Public SafetyPeopleRef: Sec. 5(2)(c)
  • Weekly infant assessments are required, but the bill does not mandate or fund corresponding parent education or interpretation of those assessments. Parents—especially those with limited health literacy, trauma, or substance use histories—may struggle to understand or act on clinical findings, limiting the effectiveness of bonding and developmental support goals.

    EducationLean peopleRef: Sec. 6(8)
  • The bill authorizes grants to the pilot facility but does not create new licensing pathways or financial incentives to expand capacity across the state. Without a clear mechanism to scale the model, only a small number of facilities (likely concentrated in urban areas) will be able to serve families, limiting geographic access and reinforcing inequities in service availability.

    Business & EmploymentLean peopleRef: Sec. 2(3)

Who Is Most Affected

Substance-exposed infantsPositive Impact

Infants benefit significantly from reduced hospitalization, improved bonding, and developmental support. However, outcomes depend on post-discharge continuity of care, which is not guaranteed by the bill. Impact is positive overall, but conditional on implementation quality.

Parents/caregivers of substance-exposed infantsPositive Impact

Parents gain access to critical wraparound services, housing support, and bonding opportunities—key for recovery and custody retention. However, those without stable housing, transportation, or substance use treatment access may still struggle to fully benefit. Impact is strongly positive for eligible families with access to services.

Pediatric transitional care facilitiesMixed Impact

Facilities gain new funding pathways and regulatory clarity, but must meet expanded staffing, assessment, and reporting requirements. Small or rural facilities may face financial or operational challenges in scaling up, while existing pilot sites stand to benefit most. Impact is mixed but leans positive for well-resourced centers.

State agencies (Health Care Authority and DCYF)Mixed Impact

DCYF and HCA gain new responsibilities but also new tools to coordinate services and reduce long-term costs (e.g., foster care, emergency health services). Implementation complexity and resource constraints may strain agency capacity, especially if federal Medicaid approval is delayed. Impact is neutral to slightly positive if funding materializes.

Child welfare system staff and agenciesPositive Impact

Child welfare systems (e.g., county DFPS workers) stand to benefit from reduced foster care placements and improved family preservation outcomes. However, without dedicated funding for post-discharge case management, caseloads may increase as families transition home without full support. Impact is positive but fragile without additional support.

Sponsors

Representative Hill(Democrat)District 3Primary
Representative Macri(Democrat)District 43Secondary
Representative Ormsby(Democrat)District 3Secondary
Representative Parshley(Democrat)District 22Secondary
Representative Gregerson(Democrat)District 33Secondary
Representative Davis(Democrat)District 32Secondary
Representative Obras(Democrat)District 33Secondary
Representative Stonier(Democrat)District 49Secondary
Representative Reed(Democrat)District 36Secondary
Representative Goodman(Democrat)District 45Secondary
Representative Thomas(Democrat)District 34Secondary
Representative Fosse(Democrat)District 38Secondary
Representative Duerr(Democrat)District 1Secondary