Sponsors (2)
The bill restores prior Medicaid demonstration oversight and reduces federal spending tied to the repealed provision, but at the risk of disrupting state programs, provider funding, and Medicaid enrollees’ benefits while imposing administrative burdens on agencies.
State Medicaid agencies and the Centers for Medicare & Medicaid Services (CMS) must use existing section 1115 rules for demonstration approvals, restoring prior oversight and consistency for how Medicaid demonstrations are reviewed and approved.
Rescinding the previously appropriated amounts tied to the repealed provision reduces near-term federal spending, lowering projected taxpayer outlays associated with that provision.
Medicaid enrollees could see changes to benefits or eligibility if demonstrations authorized under the repealed provision are ended or altered, potentially disrupting access to care.
States, hospitals, and other providers may lose expected funding or program flexibility from the repealed provision, disrupting budgets and care delivery at the state and provider level.
The rescission could force federal and state agencies to claw back, reprogram, or reconcile funds, creating administrative burden and transition costs for HHS, Treasury, and state employees.
Based on analysis of 2 sections of legislative text.
Repeals a prior provision that altered application of Social Security Act section 1115 and rescinds the funds that had been appropriated under that provision.
Introduced April 9, 2026 by Brittany Pettersen · Last progress April 9, 2026
Repeals a recently enacted provision that changed how section 1115 of the Social Security Act is applied and rescinds the federal money that had been appropriated under that provision. It also leaves in place a non-substantive provision that gives the Act a short title. In practical terms, the bill restores the prior legal treatment of section 1115 as if the intervening provision had never been enacted and removes the specific appropriated funds tied to that provision.