CMS Expands Nursing Homes’ Ability to Tap Civil Monetary Penalty Funds for Projects

The Centers for Medicare & Medicaid Services (CMS) is making several updates to the Civil Monetary Penalty Reinvestment Program (CMPRP), including changes to how nursing homes apply for funds and the types of projects that these funds are available to support.

Among the changes, CMS is accepting applications for workforce enhancement projects that will “complement” the Nursing Home Staffing Campaign (NHSC), according to a memorandum to state survey agency directors.

“Given the scope and objectives of the NHSC, CMS is accepting workforce enhancement project applications that provide improvements in areas such as staff training, culture change implementation, and professional development for frontline nursing home staff, including Registered Nurses, Certified Nursing Assistants, and Licensed Practical Nurses,” the memo stated.

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CMS also is once again accepting applications for mental and behavioral health projects, following a pause during the three-year Center of Excellence initiative undertaken with the Substance Abuse and Mental Health Services Administration. This initiative ended in Sept. 2025.

“The funding resumption provides applicants with opportunities to develop innovative behavioral health projects that build upon current efforts, ensuring the delivery of high-quality behavioral health services and supporting the unique needs of nursing home residents,” according to the memo.

CMS also has created a standardized application form for CMP projects. Nursing homes are required to use this form starting 45 days after the memo’s release date, although it is already available for use. And CMS is eliminating the extension and continuation categories of the application.

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“Therefore, all applicants will complete the same CMS-approved application and must include comprehensive project results from any previously approved projects when seeking funding to expand the project,” the memo stated.

Applicants must submit their forms to the appropriate state agency for initial review.

CMS also is increasing the per-project funding cap from $5,000 to $6,000 for projects related to resident or family council; consumer information; training to improve quality of care; and activities to improve quality of life. Nursing homes can receive funding for three separate training programs lasting three years each, bringing the maximum CMP funding per facility to $18,000.

The memo highlights changes in several other areas as well, including allowable technology parameters, project reporting parameters and updates to the CMPRP website.

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