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Unless there is something I am missing, I am not aware of anything that would prevent money to be spent on private room costs. oljim, in texas
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A really good use of those funds would be to buy her a pre-purchased funeral. Medicaid rules differ by state so you'd need to research the Medicaid limit for this.
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JoAnn29 Apr 2021
This is private pay. Not on Medicaid.
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That money can be gifted or given to a charity too.

If you are private paying, I see no reason it can't be used to offset the cost. Medicaid is not involved at this point. So in my Opinion, Mom can spend it anyway she wants just like the rest of us.
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Here's an article I kept from the National Center on Law and Elder rights. My interruption is Mom can use it anyway she wants. So can be used towards her care. Medicaid does not come into the picture at this time for her. You don't pay taxes on it either.

Nursing Home Residents, Medicaid, and 
Stimulus Checks: What You Need to Know
Will Stimulus Checks Affect My Medicaid Eligibility?

No. Under Medicaid rules, a stimulus payment is not counted as income. Therefore, receiving a 
stimulus payment does not change a resident’s monthly payment (often called a “patient pay amount” or 
“share of cost”). The resident pays the same monthly amount to the nursing facility and keeps the stimulus 
payment for their own use. 
In addition, the stimulus payment does not count as a Medicaid resource for 12 months. In other 
words, for the first year, the payment cannot cause you to have “too much”

Are There Restrictions on How I Can Spend the Stimulus Money?

In general, a resident can spend the stimulus money as they wish, including gifts and charitable 
contributions. This is the resident’s money to spend on their wants and needs.
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