IL HB5238

Establishes the Illinois Newborn Equity Support Transfer (NEST) Program to provide direct cash assistance to individuals who give birth in Illinois while enrolled in or eligible for Medicaid through Moms and Babies, with implementation required by July 1, 2026.

Participants receive a $1,500 lump sum payment during the third trimester of pregnancy and $500 monthly payments for the first 6 months after delivery, totaling $4,500 in benefits.

Cash disbursements are classified as "guaranteed income" and will not affect eligibility for other public assistance programs under the Illinois Public Aid Code.

Requires the Department of Human Services to submit biennial reports to the General Assembly on participant numbers, maternal and child health outcomes, housing stability, economic security, and recommendations for program expansion.

Program is subject to appropriation and aims to address health and economic disparities, reduce child welfare and criminal justice system involvement, and support family stability during early childhood.