In 1956, an amendment to SSA authorized federal matching for state funds devoted to providing social services, and in 1962 it was expanded to encourage the provision of social services programs for the elderly. These funds were used to provide services that would allow low-income elderly people to remain in their home. Most states used the money to provide homemaking and other domestic services to older adults still living at home.
In 1961, Congress approved a new medical facilities construction bill, the Community Health Services and Facilities Act. The bill increased federal grants to states for nursing homes, general public health services, hospital planning, and outpatient services for the aged and chronically ill by $40 million over five years.