Property Tax Reduction Act of 2022
This bill reduces federal Medicaid funding beginning in FY2025 for certain states that require political subdivisions to contribute funds towards medical assistance. Specifically, the bill applies to states that received, for FY2022, disproportionate share hospital (DSH) allotments greater than six times the national average. (DSHs are hospitals that receive additional payment under Medicaid for treating a large share of low-income patients.)
Excepted from the bill are contributions that: (1) are required from a political subdivision that has a population greater than 5 million and imposes a local income tax upon its residents, or (2) were required for administrative expenses as of January 1, 2022.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8530 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8530
To amend title XIX of the Social Security Act to reduce Federal
financial participation for certain States that require political
subdivisions to contribute towards the non-Federal share of Medicaid.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 27, 2022
Mr. Jacobs of New York (for himself, Mr. Zeldin, and Ms. Stefanik)
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 reduce Federal
financial participation for certain States that require political
subdivisions to contribute towards the non-Federal share of Medicaid.
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 ``Property Tax Reduction Act of
2022''.
SEC. 2. REDUCTION OF FEDERAL FINANCIAL PARTICIPATION (FFP) FOR CERTAIN
STATES THAT REQUIRE POLITICAL SUBDIVISIONS TO CONTRIBUTE
TOWARD NON-FEDERAL SHARE OF MEDICAID.
Section 1903 of the Social Security Act (42 U.S.C. 1396b) is
amended by adding at the end the following new subsection:
``(cc) Reduction in FFP for Contributions Required by Political
Subdivisions.--
``(1) In general.--Notwithstanding the previous provisions
of this section, in the case of a State that had a DSH
allotment under section 1923(f) for fiscal year 2022 that was
more than 6 times the national average of such allotments for
all the States for such fiscal year and that requires political
subdivisions within the State to contribute funds towards
medical assistance or other expenditures under the State plan
under this title (or under a waiver of such plan) for a quarter
in a fiscal year (beginning with fiscal year 2025), in
determining the amount that is payable to the State for
expenditures in such quarter under subsection (a)(1), other
than contributions described in paragraph (2), the amount of
such expenditures shall be reduced by the applicable percentage
described in paragraph (3), with respect to such fiscal year,
of the amount that political subdivisions in the State are
required to contribute under the plan.
``(2) Excepted contributions.--The contributions described
in this paragraph for a fiscal year are the following:
``(A) Contributions required by a State from a
political subdivision that, as of the first day of the
calendar year in which the fiscal year involved
begins--
``(i) has a population of more than
5,000,000, as estimated by the Bureau of the
Census; and
``(ii) imposes a local income tax upon its
residents.
``(B) Contributions required by a State from a
political subdivision for administrative expenses if
the State required such contributions from such
subdivision without reimbursement from the State as of
January 1, 2022.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage described in this paragraph is--
``(A) with respect to fiscal year 2025, 25 percent;
``(B) with respect to fiscal year 2026, 50 percent;
``(C) with respect to fiscal year 2027, 75 percent;
and
``(D) with respect to fiscal year 2028 and each
subsequent fiscal year, 100 percent.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
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