Shapiro Administration Calls For $1 Million Investment to Make Housing More Affordable for PA Medicaid Recipients | Department of Human Services | Commonwealth of Pennsylvania

Governor Josh Shapiro's proposed 2026-27 budget includes $1 million in state funds to invest in stable housing and case management for Medicaid recipients with certain chronic health conditions.

The proposed investment builds on solutions outlined in the Commonwealth's first Housing Action Plan, which includes pathways to housing stability and sustainability that improve both individual and community wellbeing.

Indiana, PA - Today, Pennsylvania Department of Human Services (DHS) Secretary Dr. Val Arkoosh highlight how Governor Josh Shapiro's 2026-27 Budget Proposal builds on his Administration's efforts to make housing more affordable and accessible by investing $1 million in state funding for the Investments in Health pilot program.

At the Indiana County Community Action Program (ICCAP), Secretary Arkoosh shared how the Investments in Health program will support Medicaid recipients with chronic health conditions who are currently or at risk of becoming homeless, connecting them with housing-related and community health services. This investment of state funds allows Pennsylvania to leverage additional federal matching funds, which will bring total funding to $2.5 million in the program's first year to support housing interventions that help both individuals with high-risk health needs and their broader community.

Secretary Arkoosh learned firsthand about the organization's work to address homelessness in Indiana County and its shortage of stable housing, and highlighted the Commonwealth's commitment to creating affordable housing opportunities for all Pennsylvanians. A lack of housing often impacts other necessities like food, transportation, child care, behavioral health care, and more.

"Having a safe, stable place to live isn't just about shelter. 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 rely on already overtaxed emergency departments and hospitals for everyday health care needs," said Secretary Arkoosh. "Investing in housing is one of the biggest differences we can make to improve people's health and their long-term well-being. The Governor's budget proposal makes strategic investments that allow us to pilot proven strategies that will have major impacts and result in cost savings to the Commonwealth, our hospitals and health systems, and it will improve the health and well-being of some of our most vulnerable residents."

Investments in Health will provide funding in three key areas:

• Food is Medicine: $900,000 in state funds to leverage federal investment for a total of $2.3 million to support a pilot program that will bring medically tailored meals to Medicaid recipients with diet-sensitive health conditions.
• Reentry Supports: $900,000 in state funds to leverage additional federal funding for a total of $2.7 million that will support pre-release Medicaid coverage for incarcerated individuals returning to their communities from State Correctional Institutions.
• Housing Stability: $1 million in state funding to leverage additional federal funding for a total of $2.5 million to launch a pilot that will help Pennsylvanians experiencing homelessness connect to stable housing and services.

Targeted budget investments in these proven services improve people's health and quality of life, reduce health care costs and hospital visits, improve public safety and reduce recidivism.

For more than 60 years, ICCAP has played a central role in addressing community needs and empowering individuals toward self-sufficiency. ICCAP delivers a comprehensive continuum of housing services, from eviction prevention and emergency shelter to securing safe, permanent housing.

"ICCAP's annual assessment consistently identifies transportation, nutritious food, and affordable housing as the top needs in Indiana County," said ICCAP Executive Director, Brandi Fleming. "Affordable housing is becoming the most urgent issue, driven by rising rental costs, an oversupply of student housing that prices out long term residents, and increased demand from incoming workers associated with the Data Center Project. These factors further limit the availability of safe and affordable housing for local families."

Building on Three Years of Progress

Since taking office, the Shapiro Administration has laid a strong foundation helping address the Commonwealth's housing needs while protecting renters and homeowners:

• In February 2026, Governor Shapiro unveiled the first-ever comprehensive Commonwealth Housing Action Plan, which offers nearly thirty strategic initiatives to ensure every Pennsylvanian has access to safe, stable, and affordable housing.
• In 2024, Governor Shapiro secured a $10 million annual increase until 2027 for the Pennsylvania Housing Affordability and Enhancement (PHARE) Fund - PHARE has funded over 1,000 projects to build or repair more than 8,200 housing units since 2023.
• In his FY 2024-25 budget, Governor Shapiro launched Pennsylvania's first statewide Right-to-Counsel initiative, investing $2.5 million to provide legal counsel for people facing evictions. He secured the same funding in FY 2025-26.
• Under Governor Shapiro's leadership, DCED has awarded over $120.3 million through the Whole-Home Repairs program to the 64 counties that joined the program, helping low- and moderate-income homeowners and landlords repair, adapt, and weatherize their homes.
• In his FY 2024-25 budget, Governor Shapiro secured a $5 million increase for the Homeless Assistance Program (HAP) to strengthen county-level homelessness prevention, emergency shelter, and rapid rehousing efforts across Pennsylvania.
• The Shapiro Administration also invested $2.5 million in Emergency Housing Support for local governments, providing municipalities with flexible resources to respond quickly to urgent housing needs and help stabilize families at risk of displacement.

Read more about Governor Shapiro's 2026-27 Budget Proposal.