June 4, 2026
Mrs. Cammack (for herself, Mr. Crenshaw, Mr. Buchanan, and Mr. Moran) introduced the following bill; which was referred to the Committee on Energy and Commerce
To amend title XIX of the Social Security Act to clarify the intent of Congress with regards to Medicaid financing policies.
Section 1. Short title
This Act may be cited as the Medicaid Financing Clarification Act of 2026
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Sec. 2. Clarifying the intent of Congress with regards to Medicaid financing policies
(a) State plans for medical assistance
Section 1902(a) of the Social Security Act (42 U.S.C. 1396a(a)) is amended in paragraph (2) by inserting , including public funds transferred from or certified by political subdivisions,
after from local sources
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(b) Definitions
Section 1905 of the Social Security Act (42 U.S.C. 1396d) is amended by adding at the end the following new subsections:
(ll) Public funds
For purposes of sections 1902(a)(2) and 1903(w),
public fundsmeans State and local funds in the possession of a political subdivision or public agency, including tax revenues, appropriations, fees, grants, earned interest, fines, sale or lease of public resources, legal settlements and judgments, revenue from bond issuances, tobacco settlement funds, and patient care revenues. Federal funds may not be used as public funds unless authorized by Federal law to be used as matching funds for other Federal funds.(mm) Political subdivision
For purposes of subsections (cc) and (ll) of this section and subsection 1902(a)(2), a
political subdivisionis a separate legal entity of a State which has specific governmental functions. A political subdivision may include a county, city, town, village, district, non-State governmental entity, or other unit of local government in a State.(nn) Public agency
For purposes of subsection (ll) of this section and subsections 1902(a)(2) and 1903(w), a
public agencyis a unit of government, including a State or any political subdivision thereof.