Texas hospitals face daily losses as billions in Medicaid funding remain frozen

LAREDO, Tex. (KGNS) - Texas hospitals expect to lose $27 million every day starting this week as nearly $10 billion meant for the state’s hospitals remains stuck in Washington.

Lawmakers warn rural clinics could face cuts to services as a result. U.S. Rep. Henry Cuellar said the holdup is the result of a standoff between Texas and the federal government.

“We want to ask the administration to release those dollars. The problem is, as an appropriator, is that the administration has been making decisions to cut, to hold funding. They’re not supposed to be doing that,” Cuellar said.

The bulk of the funding affects a program called CHIRP, the Comprehensive Hospital Increase Reimbursement Program. It covers the cost of caring for 4 million Texans on Medicaid, most of them children.

The federal government is questioning how Texas calculates its taxes to obtain the funding. Cuellar said rural families are most at risk.

“Hospitals have warned that losing CHIRP could mean service cuts to rural and hospital-affiliated providers,” Cuellar said.

A federal proposal called the “Big Beautiful Bill” could cut Medicaid spending by an additional $900 billion over the next decade, according to Cuellar. He said without a fix, hospitals will have to cut services.

The Centers for Medicare and Medicaid Services wanted assurances that none of the nearly $10 billion would cover health care for noncitizens.

The Texas Health and Human Services Commission responded Aug. 17, confirming the funding would not go toward anyone who has not proven their legal immigration status.

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