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Federal $60 Billion Medicaid Boost to Last Through 2028

1/15/2026

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Summary

Story summary

The federal government approved $60 billion in Medicaid funds for medical providers in late 2025.
The funds will keep Medicaid payment rates comparable to commercial insurers through 2028, when cuts begin under Republicans’ tax law.
The Centers for Medicare and Medicaid Services (CMS) approved $9 billion and $4 billion in state-directed payment programs last year and projected costs of $124 billion in 2025 and $145 billion in 2026.

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Story summary

The federal government approved $60 billion in Medicaid funds for medical providers in late 2025.
The funds will keep Medicaid payment rates comparable to commercial insurers through 2028, when cuts begin under Republicans’ tax law.
The Centers for Medicare and Medicaid Services (CMS) approved $9 billion and $4 billion in state-directed payment programs last year and projected costs of $124 billion in 2025 and $145 billion in 2026.