DHS Issues Guidance on State-Funded Grants


March 24, 2020

On Mar. 23, the Illinois Dept. of Human Services (DHS) issued a Communication Alert with contracted providers on sustaining funding for organizations that are unable to provide services or only able to provide limited services due to the public health emergency. DHS is following federal guidance that permits grantees to continue to charge salaries and benefits for active grants, with the following specifications:

  • Expense-Based Grants: Payments for expense-based grants will be made as normal.

  • Fixed-Rate Grants: Continue to submit billing information. DHS will make grant payments equal to “average monthly billings x reimbursement rate.” The portion of the grant payment not supported by service billings will need to be expended for costs (e.g. salaries and benefits, facility and administrative costs).

  • DHS Funded Medicaid Fee-For Service: Continue to submit billing information. DHS will make retention payments equal to “average monthly billings x reimbursement rate.” Retention payments are to be expended for costs (e.g. salaries and benefits, facility and administrative costs).