This bill mandates the Department of Health and Human Services to submit a Section 1115 demonstration waiver to the Centers for Medicare and Medicaid Services (CMS) by November 1, 2026, to provide Medicaid coverage for the cost of 100 diapers per month for infants during their first year of life. The bill also requires the department to submit biennial reports to the oversight committee on health and human services regarding the status of the waiver application, with an aim to implement the benefit by May 1, 2027, contingent upon CMS approval.

Additionally, the bill appropriates $100,000 for the fiscal year ending June 30, 2027, to fund this initiative. The estimated fiscal impact includes a projected expenditure of approximately $1,068,120 in federal funds and $919,080 in general funds annually, based on an anticipated high utilization rate among eligible families. The bill does not authorize new positions and is expected to have no revenue impact.