Medicaid Financing Clarification Act of 2026

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9139 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9139

To amend title XIX of the Social Security Act to clarify the intent of
         Congress with regards to Medicaid financing policies.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              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

_______________________________________________________________________

                                 A BILL

To amend title XIX of the Social Security Act to clarify the intent of
         Congress with regards to Medicaid financing policies.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicaid Financing Clarification Act
of 2026''.

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''.
    (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 funds' means 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
subdivision' is 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 agency' is a
unit of government, including a State or any political subdivision
thereof.''.
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