Politics

Texas AG files lawsuit against Biden administration over rescinding billions in funding to hospitals

Texas Attorney General Ken Paxton announced Friday that he filed a lawsuit against the Biden administration over its decision to rescind a Medicaid waiver extension that would provide billions to state hospitals.

While the move does not revoke healthcare funding through 2022, Paxton called it an “unlawful abuse of power aimed at sovereign states.” The Biden administration rescinded a Trump era eight-year extension to provide billions of dollars in federal funds annually to Texas’ uninsured residents. “The Biden Administration cannot simply breach a contract and topple Texas’s Medicaid system without warning,” Paxton said in his statement on Friday. The Trump-granted extension would have continued funding for hospital reimbursements through 2030 but would have dropped the innovation funds allotted through the waiver.

Paxton claimed the move by the Biden administration was a political move to force states like Texas to expand the Medicaid program under the federal healthcare plan. “Not only does this violate agency regulations and threaten to rip a $30 billion hole in Texas’s budget, it was clearly intended to force our state into inefficiently expanding Medicaid under the Patient Protection and Affordable Care Act (ACA),” Paxton said. “This would be a disaster for our state, and yet President Biden seems intent on thrusting his bloated model of government on everyone, including Texas.”

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ARTICLE: DUSTIN RODGERS

POLITICS EDITOR: CARSON CHOATE

PHOTO CREDITS: STAR LOCAL MEDIA

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