This bill phases out the enhanced federal funding that currently supports Medicaid coverage for low-income adults under the Affordable Care Act's Medicaid expansion. Starting in 2027, the federal government's share of costs for these beneficiaries would gradually decrease each year through 2034, ultimately reaching the standard federal match rate by 2035. The bill treats states differently based on their prior expansion decisions: states that have not yet expanded Medicaid would receive the regular federal match if they choose to cover low-income adults, while states that already expanded could limit coverage to only those earning up to 100 percent of the federal poverty line and keep the enhanced federal funding for that narrower group. The legislation would reduce federal Medicaid spending over time by shifting more costs to states and potentially limiting coverage for millions of low-income Americans currently insured through Medicaid expansion.
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