FIRST IN CAPITOL NEWS INSIDER: A pair of progressive lawmakers have introduced legislation aimed at improving maternal and infant health outcomes through direct, no-strings-attached cash payments to expectant and new mothers on Medicaid.
Identical bills have been filed in the House by state Rep. Kelly Cassidy, D-Chicago, and the Senate by state Sen. Graciela Guzmán, D-Chicago. Lawmakers and advocates with the group Economic Security Illinois Action will hold a news conference in the Capitol today.
WHAT IT DOES: Under the program, dubbed the Newborn Equity Support Transfer, or NEST, eligible mothers would receive $1,500 during the third trimester of pregnancy and $500 per month for the first six months of the baby’s life. Proponents estimate that 40% of all new mothers in Illinois would be eligible.
RESULTS: The program is modeled after Rx Kids, a 2024 pilot program in Flint, Michigan, that proved so successful that it was expanded statewide in 2025. According to research from Michigan State University, Flint saw drops in preterm births (-18%), low birthweight births (-27%) and NICU admissions (-29%) in 2024 compared the previous year.
COST: Advocates did not attach an appropriation request to the plan, but the statewide expansion in Michigan cost $270 million.
Gov. JB Pritzker last week proposed a largely status-quo budget that only increases discretionary spending by about 0.5% and, he acknowledged, “levels off and in some cases reduces programs” he cares about. Lobbyists representing health and human service providers came away from the speech concerned.
However, advocates believe a short-term upfront cost will pay long-term dividends. Citing research showing higher costs associated with preterm and low-birthweight births, they said NEST could save Illinois more than $140 million in annual Medicaid costs. A spokesperson for advocates said the program “can also be scaled based on funding available.”
WHAT’S NEXT: The Senate version has been assigned to the Senate Appropriations-Health and Human Services Committee, and the House version remains in the gatekeeping House Rules committee.
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