AARP Pushes for Enhanced Support for Rural Family Caregivers

AARP is leading a national effort to secure financial and legal protections for the 63 million family caregivers in the United States, citing an economic value of more than $1 trillion in 2024. The organization is currently urging federal and state legislators to expand paid family leave, enact tax credits for low-income caregivers, and increase the accessibility of community and home care.

These advocacy efforts come as millions of caregivers face potential losses in health coverage due to federal legislation. The One Big Beautiful Bill Act (OBBA), signed into law in 2025, introduced new work requirements for Medicaid enrollees. Starting in January 2027, and potentially earlier in some states, enrollees between the ages of 19 and 64 must prove they are volunteering, enrolled in school, or employed for at least 80 hours per month to maintain their coverage.

Medicaid Risks for Family Caregivers

According to the Caregiving in the US 2025 report from AARP and the National Alliance for Caregiving, 7.3 million adults ages 18 to 64 who provide care rely on Medicaid for health insurance. Many of these individuals have left steady employment and benefits to assist loved ones with essential daily tasks such as dressing, bathing, and housework.

While the OBBA provides specific exemptions for those caring for people with disabilities and parents or guardians caring for dependent children, millions of other caregivers remain uncertain about their eligibility. AARP is advocating for simpler verification procedures and clearer exemptions to prevent caregivers from losing health insurance.

Caregiving is a huge burden on people. It keeps them from working, so their income is lower and Medicaid is critical.

Ellen Andrews, executive director of the Connecticut Health Policy Project

Federal and State Financial Initiatives

To address the financial strain on families, AARP launched a campaign on January 21, 2026, to urge Congress to pass the Credit for Caring Act. This bipartisan proposal would establish a non-refundable tax credit for working family caregivers to help offset the costs of caregiving expenses.

The campaign, which runs for 100 days, highlights that family caregivers spend an average of over $7,200 annually on out-of-pocket costs, representing approximately 26 percent of their income. This financial burden often makes it more difficult for caregivers to pay for basic necessities such as bills and groceries.

At the state level, several jurisdictions have already implemented protections and financial aid:

• Oklahoma became the first state to pass a statewide caregiver tax credit in 2023.
• Vermont, Minnesota, New Jersey, Tennessee, Virginia, and the U.S. Virgin Islands have secured job protections to ensure qualifying caregivers do not lose income while caring for loved ones.
• South Carolina, Ohio, and Iowa have provided nursing home residents with increased financial flexibility to cover everyday needs.

Rural Health and Regional Impact

The push for caregiver support extends to rural areas through the Rural Health Transformation Program (RHTP). Created by the federal government in 2025, the RHTP is a grant system designed to support rural health care initiatives. AARP has been pushing for enhancements for family caregivers as part of this program to address the specific needs of those in underserved regions.

The importance of this support is reflected in states like North Dakota, where family caregivers provide substantial unseen value to the community and the healthcare system.

AARP continues to call for federal action regarding adequate nursing home staffing and the implementation of tax credits to alleviate the burden on the nation’s aging population and those who care for them.