This report explores ways in which California’s regional center system, which supports individuals with substantial intellectual and developmental disabilities (I/DD), might increase its uptake of federal funding.  First, we attempt to clarify the convoluted regulations that determine regional center consumers’ eligibility for federally-matched Medicaid programs, and estimate the potential magnitude of lost federal revenue.  Secondly, we identify ways in which state officials could collaborate with other stakeholders to determine which eligible services and supports are not being matched by federal dollars and why.  Finally, we suggest that state officials develop targeted interventions to nudge consumers and regional centers toward increased drawdown of federal funds, and parlay any resulting cost savings into increasing the stock of affordable, community-based housing for individuals with I/DD.