Reduction of the Refugee Cash Assistance and Refugee Medical Assistance Eligibility Period

By U.S. Department of Health & Human Services

DCL 25-13

Dear Colleague:

ORR published a Federal Register Notice  on March 21, 2025, that announces the reduction of the eligibility period for Refugee Cash Assistance (RCA) and Refugee Medical Assistance (RMA) from 12 months to four months, for ORR-eligible populations whose date of eligibility for ORR benefits is on or after May 5, 2025.

Authorization

The 1980 Refugee Act (8 U.S.C. 1522(e)(1)) authorizes ORR to provide RCA and RMA to refugees. ORR’s regulations (45 CFR 400.211(a)) allow the Director to determine the time-eligibility period for these benefits based on available appropriated funds, refugee arrival flows, and State reports on receipt of assistance and expenditures. The ORR Director has decided to shorten the RCA and RMA eligibility period from 12 to four months to avoid a significant budget shortfall.

Rationale for the Decrease in RCA and RMA Eligibility Period

Since the passage of the Refugee Act of 1980, ORR has adjusted the duration of RCA and RMA based on available appropriated funds, refugee arrival flows, and State reports on receipt of assistance and expenditures. As permitted by ORR regulations, ORR extended the eligibility period from eight to 12 months in FY 2022. Since October 1, 2024, approximately 109,800 refugees and other eligible populations have been resettled in the U.S. However, Congressional funding has decreased by over 35% in fiscal year 2024. This imbalance between arrivals and funding to serve them has created unsustainable budget constraints: expanded RCA and RMA benefit periods have required supplemental appropriations or transfers from other essential programs annually since FY 2022.

Pursuant to 45 CFR § 400.211, ORR calculated the costs of providing RCA and RMA to current beneficiaries and the estimated number of future beneficiaries at 12, nine, eight, six, and four months, and determined that it must shorten the period of eligibility for RCA and RMA to four months to accommodate the number of eligible refugees with its decreased resources.

Eligibility Timeframe

ORR-eligible populations are eligible to receive up to four months of RCA and RMA if their eligibility date is on or after May 5, 2025.

Reporting and Implementation Guidelines

States and Replacement Designees (RDs) must submit to ORR for approval an amendment to their FY25 state plan demonstrating their compliance with the new eligibility period for RCA and RMA. State- administered programs should submit an amended Section II.B.7.b — c for the RCA changes. Public- private partnership programs should submit an amended Section II.B.9.c, f — g for the RCA changes.

State and Medical Replacement Designee programs should submit an amended Section II.C.3 for the RMA changes.

States and RDs must also submit an ORR-1 revision that estimates budget need for the rest of FY 2025, including the reduction in the RCA and RMA eligibility period and for data systems updates necessary for implementation. States and RDs must adjust the estimated average monthly recipients/users for RCA and RMA based on the reduction of the eligibility period, recipients to date, and expected arrivals through the end of FY 2025. Systems updates necessary for implementing this change may be charged to the Cash and Medical Assistance grant. A justification should be included to explain any changes to the CMA estimate beyond the reduction of the eligibility period and related systems updates.

States and RDs must submit the FY25 state plan amendment and FY25 ORR-1 revision to their Regional Representative via email attachment no later than April 21, 2025.

States and RDs must continue to submit state plans and ORR-1s annually. Future submissions must comply with the eligibility period determined by the Director.

If you have questions about the eligibility period for RCA or RMA or about the submission of a revised state plan or ORR-1, please contact your ORR Regional Representative/Regional Analyst and copy the Division of Refugee Assistance at (draprograms@acf.hhs.gov).

For policy-specific questions, please contact the Division of Refugee Policy at (refugeepolicy@acf.hhs.gov).
 

Sincerely,

Angie Salazar
Acting Director
Office of Refugee Resettlement