Rep. Cuellar Calls for the Immediate Release of Critical Medicaid Funding for Texas Hospitals

WASHINGTON – U.S. Congressman Henry Cuellar, Ph.D. (D-TX-28) today called for a quick resolution to an ongoing dispute that is holding up approximately $9.8 billion in Medicaid funding for Texas hospitals and health care providers.

Beginning September 1, Texas hospitals are expected to lose an estimated $27 million per day because the Administration has not approved Medicaid funding programs for the new state fiscal year.

The Administration has held up this funding as it questions how Texas calculates local hospital taxes used to draw federal Medicaid matching funds. The largest program affected, the Comprehensive Hospital Increase Reimbursement Program (CHIRP), helps hospitals cover the difference between what Medicaid pays and the actual cost of providing care.

“Texas hospitals depend on these dollars to take care of their patients,” said Congressman Cuellar. “The Administration needs to ensure this critical funding is provided. Hospitals should not have to cut services or absorb millions of dollars in costs while this dispute continues.”

Nearly four million Texans are enrolled in Medicaid, most of them children. Hospitals have warned that a prolonged loss of this funding could force them to cut services, with rural hospitals and other providers particularly at risk.

The funding dispute also comes as hospitals prepare for broader Medicaid reductions included in the so-called Big Beautiful Bill, which is projected to reduce federal Medicaid spending nationwide by approximately $900 billion through 2034.

“This is not simply a disagreement over how these dollars are calculated,” said Congressman Cuellar. “If hospitals lose millions of dollars every day, that affects their ability to care for patients. Children, seniors, and families depend on these services.”

“I will continue working to protect Medicaid, support our Texas hospitals, and make sure families in South Texas have access to the health care they need. This issue needs to be resolved.”

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Congressman Henry Cuellar, Ph.D. is a senior member of the U.S. House Appropriations Committee. Previously, he served as a Texas State Representative and Texas Secretary of State. Sign up to receive Dr. Cuellar’s Email Newsletters.