The bill establishes the Maternity Care Pilot Program, which will be administered by the State Department of Health. Under this program, the Department will select one hospital to receive a one-time grant of $5 million to enhance its labor and delivery services. To qualify for the grant, hospitals must meet specific criteria, including being licensed, designated as a critical access hospital, organized as a charitable entity under IRS regulations, owned by a municipality or county, profitable for the previous two years, not currently offering labor and delivery services, having available space for a labor and delivery unit, and employing at least one Certified Nurse-Midwife.

The bill outlines that the grant funds can only be used for specific purposes, including staffing costs for an obstetrics team, acquiring essential medical equipment and supplies, and providing educational classes related to maternal and infant health. Notably, the funds cannot be used for construction or renovation costs. The State Commissioner of Health is authorized to create necessary rules for the implementation of this program. The act is set to take effect on July 1, 2025, and includes an emergency clause for immediate enforcement upon passage and approval.