H.R. 9139House119th Congress (2025-2027)In Committee

Medicaid Financing Clarification Act of 2026

AI-Generated Summary

Updated June 10, 2026 at 5:41 AM UTC

The Medicaid Financing Clarification Act of 2026 amends Title XIX of the Social Security Act to spell out what counts as "public funds" for state Medicaid financing and to define political subdivisions and public agencies. By clarifying these terms, the bill guides how state and local money can be used as matching funds for Medicaid, affecting state governments, local jurisdictions, and the administration of Medicaid programs.

Key Provisions

Adds the phrase “including public funds transferred from or certified by political subdivisions” to the Medicaid state‑plan funding language in Section 1902(a)(2).
Creates a new definition of “Public Funds” that includes state and local tax revenues, appropriations, fees, grants, interest, fines, settlements, bond proceeds, tobacco settlement money, and patient‑care revenues, while stating that federal funds can only be used if federal law permits them as matching funds.
Defines “Political Subdivision” as any separate legal entity of a state with governmental functions, such as counties, cities, towns, villages, districts, or other local government units.
Defines “Public Agency” as a unit of government, including a state or any of its political subdivisions.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

June 4, 2026

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HouseIntro Referral

Introduced in House

June 4, 2026

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

June 4, 2026

Bill Text

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Introduced in HouseIssued June 4, 2026

119th CONGRESS

2d Session

H. R. 9139

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.

Short title

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

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.