Protect Medicaid and Rural Hospitals Act

This bill would undo recent changes to how states can use certain Medicaid funding tools and payments. It would restore the old rules for state “provider taxes” and for state-directed Medicaid payments, rolling back limits put in place by a previous law. This is meant to help states keep funding steady for hospitals and clinics that serve Medicaid patients .

It would also boost money for a program focused on rural health. The plan adds $10 billion each year from 2031 through 2035 to support changes that keep care available in small towns and rural areas, such as helping hospitals stay open or shift services people need most .

• Who is affected: state Medicaid programs, hospitals and clinics (especially rural), and Medicaid patients .
• What changes: restores prior Medicaid rules on provider taxes and state-directed payments; adds $10B/year for rural health transformation .
• When: funding increases are set for fiscal years 2031–2035; the rollbacks take effect by repealing the earlier changes .