The Centers for Medicare and Medicaid Services (CMS) issued a State Medicaid Director Letter on June 22 on the renewal and expansion of the Money Follows the Person (MFP) Demonstration under the federal health care reform law. The Patient Protection and Affordable Care Act (PPACA) extended the earlier MFP demonstration through September 2016 and authorized an additional $2.25 billion consisting of $450 million for each fiscal year from 2012 through 2016. CMS outlined the requirements that states must meet to qualify for new MFP funding and changes in earlier MFP requirements resulting from the PPACA, which include a reduction in the duration of an individual’s institutional placement (from 6 months to 90 days) that may trigger MFP funding to support community placement for that person. CMS will post a competitive grant solicitation for states in July. Grant applications will be due 120 days after that posting.