A bill to require the Secretary of Health and Human Services to establish a respite care demonstration project.

Directs the Secretary of Health and Human Services to establish a demonstration project under title XIX (Medicaid) of the Social Security Act which shall be administered by a State health agency and which provides respite care services, including: (1) short-term sitter, homemaker, and personal-care services, adult day care, inpatient care, and emergency respite; and (2) peer support and training for family caregivers. Provides such services to elderly and disabled Medicaid-eligible individuals and to other elderly and disabled individuals, for a reasonable fee, who would otherwise require institutional care. Provides that priority, among the latter group, shall be given to those who would be eligible for Medicaid benefits upon institutionalization.

Provides that the State and Federal governments shall each cover one-half of project costs, but sets a fiscal year limit on Federal outlays.

Limits the duration of the project to four years, plus an additional period of up to six months for final evaluation and reporting. Sets forth reporting requirements.