The benefits were authorized under a federal waiver set to expire in September 2027. Without an extension, the reductions would compound cuts to Medicaid eligibility expected to take effect in January under President Donald Trump's One Big Beautiful Bill Act, which state officials have estimated could affect hundreds of thousands of Oregonians.

"Without waiver authority from (the Centers for Medicare & Medicaid Services), the state does not have the ability to keep continuous eligibility protections in place," Oregon Health Authority spokesperson Kristen Lambert wrote in an email. "If the incoming Congress issues new federal requirements or guidance regarding state waivers, then we will work with CMS to adjust or renegotiate Oregon's waiver application."

The Oregon Health Authority is accepting public comment on its proposed, slimmed-down waiver application, which is due in March.

Taken together, the changes would further reduce the ways the Oregon Health Plan supports its 1.4 million members—about one in three Oregonians who lack private insurance and rely on publicly funded coverage. The state plan is financed largely with federal Medicaid dollars and requires federal approval to operate.

The proposed cuts would affect some of Oregon's most vulnerable residents, including low-income children, people with disabilities, and those struggling with housing instability.

In some cases, state officials said they would seek to continue a benefit on a smaller scale rather than drop it entirely. Oregon plans to apply to keep covering some housing costs for people at risk of homelessness who either have a high-risk pregnancy or recently had one and are caring for an infant. Currently, a far wider range of low-income people with unstable housing are eligible for up to six months of rent and utility support, though the program has not always served everyone approved for the benefit since it launched in 2024.

The proposed application would also request permission to cover people in custody for up to 60 days before their release, rather than 90.

In other cases, state leaders said they would not seek an extension because federal guidance indicates it would not be approved. Since mid-2023, Oregon has allowed children eligible for the state health plan to remain insured until their sixth birthday without parents having to re-enroll them, shielding families from fluctuations in a parent's earnings. From ages 6 to 19, children have been able to stay enrolled for two years at a time before eligibility was reviewed again.

More than 700,000 Oregon children maintained state coverage under Oregon's extended continuous eligibility policies, according to the Oregon Health Authority.

However, the U.S. Centers for Medicare & Medicaid Services announced last year that it would no longer fund continuous enrollment for any age group.

"CMS does not anticipate … extending existing (state) authority for expanded continuous eligibility," a July 2025 memo from the federal agency states. "This shift in approach reflects the agency's commitment to preserving these vital programs for the most vulnerable Americans and being good stewards of taxpayer dollars."

State officials do plan to seek extensions for programs aimed at tribal members living in Oregon, including nutrition and housing benefits.

A summary of the state's proposed new waiver application is available on the health authority's website. Public comment on the proposal can be submitted through Dec. 9, 2026.