INDIANA, PA — Medicaid recipients with chronic health conditions who are at risk of homelessness could receive new housing and support services under a proposed $1 million state investment included in Governor Josh Shapiro’s 2026–27 budget.
What This Means for You
- Vulnerable residents may gain access to stable housing and support services
- State funding could unlock additional federal dollars for expanded programs
- Housing support is being tied directly to health care outcomes
The funding would support the Investments in Health pilot program, which connects Medicaid recipients — a government health coverage program for low-income individuals — with housing assistance and community-based services.
State officials said the $1 million investment would leverage federal matching funds, bringing total first-year funding for housing-related services to $2.5 million.
How the Program Works
The initiative is designed to address the connection between housing stability and health outcomes, particularly for individuals managing chronic conditions such as diabetes or behavioral health disorders.
Secretary of Human Services Dr. Val Arkoosh said stable housing can reduce reliance on emergency care and improve long-term health.
“Having a safe, stable place to live isn’t just about shelter,” Arkoosh said. “People who are housed are more likely to find and keep a job, are better able to manage chronic health conditions, and are less likely to rely on already overtaxed emergency departments.”
The housing component is one part of a broader Investments in Health initiative that also includes programs focused on nutrition and reentry services.
Broader Program Investments
In addition to housing support, the proposal outlines:
- $900,000 for a “Food is Medicine” program providing medically tailored meals for individuals with diet-related conditions
- $900,000 for reentry services to help individuals leaving incarceration access Medicaid coverage and community support
Each category is expected to draw additional federal funding, expanding the overall impact of the program.
Local Impact in Indiana County
State officials highlighted the initiative during a visit to the Indiana County Community Action Program, which provides services ranging from eviction prevention to permanent housing placement.
Local leaders said housing shortages are being driven by rising rents, increased demand, and limited availability of affordable units.
“Affordable housing is becoming the most urgent issue,” said ICCAP Executive Director Brandi Fleming, citing pressures from student housing demand and new workforce growth in the area.
Building on Existing Housing Efforts
The proposal builds on several recent housing initiatives, including a statewide Housing Action Plan released in February 2026 outlining strategies to expand access to affordable housing.
Other efforts include increased funding for housing programs, legal assistance for renters facing eviction, and statewide repair programs for homeowners.
Next Steps
The proposed funding must be approved as part of the state’s 2026–27 budget before the pilot program can move forward.
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