Project 2025 Tracker / What’s done, what’s next

14. Department of Health and Human Services · Major · Needs Congress

Reform Medicaid financing with block grants or per capita caps

Not started

Printed page 466 14. Department of Health and Human Services

“Reform financing. Allow states to have a more flexible, accountable, predictable, transparent, and efficient financing mechanism to deliver medical services. This system should include a more balanced or blended match rate, block grants, aggregate caps, or per capita caps.”

What has happened

  1. Not started

    Medicaid is still financed by an open-ended federal match at the statutory FMAP. Nothing in the window replaces it with a blended rate, a block grant, an aggregate cap or a per capita cap. What did change runs the other way for States: CMS proposed closing the health-care-related-tax "loophole" (2025-05-15) and Public Law 119-21 tightened provider taxes, state-directed payments and § 1115 budget neutrality — squeezing the existing match rather than restructuring it into the flexible mechanism the Mandate asks for.

Research log

What was searched, and what didn’t count as evidence

Research notes

  • Negative searches run 2026-08-27: the titles of the bills we keep and search, for “per capita cap” — 0 hits; for “Medicaid” together with financing, flexibility, cap or grant — 4 hits, all narrow (H.R. 584, H.R. 936, H.R. 6254, H.R. 9139), none block-granting or capping the program. Among the public laws we keep and search, from congress.gov, the only Medicaid financing law of the window is Public Law 119-21, which leaves the match structure intact.
  • Recorded as not started with the contrary action dated and sourced: when the government moves away from an ask, the Status stays not started and the action that moved the other way is its Evidence.
Action
other
Object
Medicaid financing structure
ID
1272