Sponsors (4)
The bill increases federal Medicaid support to U.S. territories—improving coverage and provider stability there—but raises federal costs and creates administrative and allocation challenges for HHS, states, and taxpayers.
Medicaid beneficiaries in U.S. territories will receive expanded federal support starting FY2025, increasing covered services and eligibility assistance and stabilizing local providers and hospitals.
Territorial health systems and programs (territory governments and hospitals) will gain higher federal matching funds, improving financial stability for local health providers.
Territorial budgets may face less fiscal pressure and gain federal funding predictability for Medicaid planning beginning FY2025.
Federal taxpayers and the federal budget are likely to face increased Medicaid spending due to higher federal payments to territories beginning FY2025.
States’ relative share of federal Medicaid resources could be indirectly affected if overall federal Medicaid costs rise, potentially complicating future federal allocations or negotiations.
HHS and territorial administrations may face administrative complexity and implementation challenges adapting payment formulas and eligibility rules for FY2025.
Based on analysis of 2 sections of legislative text.
Removes statutory aggregate Medicaid funding limits for the five U.S. territories, effective FY2025, by amending Social Security Act payment provisions and conforming cross‑references.
Official title: To amend title XI of the Social Security Act to eliminate the general Medicaid funding limitations for territories of the United States, and for other purposes.
Introduced May 1, 2025 by Kimberlyn King-Hinds · Last progress May 1, 2025
Removes statutory aggregate caps and related statutory limitations on Medicaid funding for the five U.S. territories (Puerto Rico, U.S. Virgin Islands, Guam, Northern Mariana Islands, and American Samoa) beginning in federal fiscal year 2025. The change amends the Social Security Act to eliminate the specific statutory ceilings and conform cross‑references so territorial Medicaid spending is no longer constrained by those provisions starting FY2025.