July 30, 2026  – Pennsylvania is expanding its efforts to address the connection between housing and health through a new Medicaid initiative that state officials believe could improve health outcomes while reducing healthcare costs.

The Shapiro Administration recently announced a $1 million investment in the new Investments in Health housing pilot program as part of the Commonwealth’s 2026-27 budget. The initiative is designed to support Medicaid beneficiaries with chronic health conditions who are homeless or at risk of losing housing by connecting them with housing-related services and community-based supports.

The funding is part of a broader $1.9 million state investment that also includes reentry services for individuals leaving state correctional facilities. By leveraging federal Medicaid matching funds, the combined investment is expected to generate approximately $5.2 million during the program’s first year.

State officials say stable housing plays a critical role in helping people manage chronic illnesses, avoid preventable emergency department visits, and remain safely in their communities. Those goals closely align with the growing emphasis on home-based care and addressing social determinants of health within Medicaid programs.

Pennsylvania Department of Human Services Secretary Dr. Val Arkoosh highlighted the importance of the investment during a visit to the Lehigh Conference of Churches in Allentown, an organization that provides housing assistance, reentry support, and other services for individuals experiencing poverty and homelessness.

“When we invest in housing, we’re investing in the health of individuals and our community as a whole. People who are housed are more likely to find and keep a job, are better able to manage chronic health conditions like diabetes where medication needs to be properly stored, and are less likely to go right to emergency departments and hospitals for everyday health care needs,” said Secretary Arkoosh.

The housing pilot will receive $1 million in state funding, which will be matched with federal dollars to provide approximately $2.5 million for services focused on housing stability. Another $900,000 in state funding will support pre-release Medicaid coverage and reentry services for incarcerated individuals transitioning back into their communities, bringing that portion of the initiative to roughly $2.7 million with federal matching funds.

For home health providers and community-based organizations, the initiative reflects a continued shift toward recognizing housing as an important component of healthcare delivery. By helping Medicaid recipients secure stable housing and access supportive services, Pennsylvania hopes to improve health, strengthen community-based care, and reduce reliance on more costly emergency and institutional services over time.