Disability Community Act of 2026

This Act may be cited as the “Disability Community Act of 2026”.

(a) In general.— Section 1903(a)(5) of the Social Security Act (42 U.S.C. 1396b(a)(5)) is amended—

(1) by striking “an amount equal to” and inserting “(A) an amount equal to”;

(2) by striking “supplies;” and inserting “supplies; and”; and

(3) by adding at the end the following:

“(B) an amount equal to 90 percent of the sum of the amounts expended during a quarter in 2027, 2028, or 2029, for items and services furnished in an intermediate care facility for the mentally retarded or for home and community-based services furnished to individuals with intellectual and developmental disabilities, as the Secretary determines are attributable to compliance with any of the regulations specified in—

(i) part 541.600 of title 29, Code of Federal Regulations; or

(ii) part 430, 431, 435, 436, 440, 441, or 447 of title 42, Code of Federal Regulations;”.

(b) Conforming terminology for intermediate care facilities.— Title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) is amended—

(1) by striking “intermediate care facility for the mentally retarded” each time such term appears (including in headings) and inserting “intermediate care facility for individuals with intellectual and developmental disabilities”;

(2) by striking “intermediate care facilities for the mentally retarded” each time such term appears (including in headings) and inserting “intermediate care facilities for individuals with intellectual and developmental disabilities”;

(3) by striking “State mental retardation or developmental disability authority” each time such term appears and inserting “State intellectual or developmental disability authority”;

(4) in section 1905(d)—

(A) in the matter before paragraph (1), by striking “thereof) for the mentally retarded or persons” and inserting “thereof) for individuals with intellectual or developmental disabilities or”;

(B) in paragraph (1), by striking “mentally retarded individuals” and inserting “individuals with intellectual or developmental disabilities”; and

(C) in paragraph (2), by striking “the mentally retarded individual” and inserting “the individual with an intellectual or developmental disability”;

(5) in section 1915(c)(7)(C), by striking “mental retardation” and inserting “intellectual or developmental disabilities”;

(6) in section 1919(b)—

(A) in paragraph (3)—

(i) in subparagraph (E), by striking “mentally retarded” and inserting “has intellectual or developmental disabilities”; and

(ii) in subparagraph (F)—

(I) in the heading, by striking “and mentally retarded individuals” and inserting “individuals and individuals with intellectual or developmental disabilities”; and

(II) in clause (ii)—

(aa) by striking “is mentally retarded” and inserting “has an intellectual or developmental disability”; and

(bb) by striking “for mental retardation” and inserting “for intellectual or developmental disabilities”; and

(B) in paragraph (4)—

(i) in subparagraph (A)(vii), by striking “mentally ill and mentally retarded residents” and inserting “residents who are mentally ill or who have intellectual or developmental disabilities”; and

(ii) in subparagraph (C)(ii)(IV), by striking “the mentally retarded” and inserting “individuals with intellectual or developmental disabilities”; and

(7) in section 1919(e)—

(A) in paragraph (7)—

(i) in subparagraph (A)(i), by striking “mentally ill and mentally retarded individuals” and inserting “individuals who are mentally ill or who have intellectual or developmental disabilities”;

(ii) in subparagraph (B)—

(I) by striking “mental retardation” each place such term appears and inserting “intellectual or developmental disability”;

(II) in clause (ii)—

(aa) in the heading, by striking “mentally retarded residents” and inserting “residents with intellectual or developmental disabilities”; and

(bb) in the matter preceding subclause (I), by striking “is mentally retarded” and inserting “has an intellectual or developmental disability”; and

(III) in clause (iii), by striking “mentally ill or mentally retarded resident” and inserting “resident who is mentally ill or who has an intellectual or developmental disability”;

(iii) in subparagraph (C), by striking “mental retardation” each place such term appears and inserting “intellectual or developmental disability”;

(iv) in subparagraph (E)—

(I) by striking “are mentally retarded or” and inserting “have intellectual or developmental disabilities or are”; and

(II) by striking “mental retardation” and inserting “intellectual or developmental disability”; and

(v) in subparagraph (G)(ii)—

(I) by striking “be “mentally retarded”” and inserting “have “an intellectual or developmental disability””; and

(II) by striking “is mentally retarded or a person with” and inserting “has an intellectual or developmental disability or”.