CMS withholds approval of about $9.8 billion in Texas Medicaid payments
Issue
The Texas Tribune reported on August 31, 2026 that CMS is withholding approval of about $9.8 billion in Texas Medicaid payments for the fiscal year that began September 1, most of it hospital CHIRP funding. The Texas Hospital Association says hospitals are losing $27 million a day.
The reporting names no FQHC payment.
Key points
- About $9.8 billion across three Texas directed-payment programs is awaiting CMS approval; CHIRP is more than $9.1 billion of it.
- No FQHC payment is named, but hospital cuts to services like labor and delivery could change where health centers refer patients.
- The hold comes from a dispute over how local hospital taxes are calculated, and CMS and Texas are working on a memorandum of understanding.
Sources for this story
The Texas Tribune (August 31, 2026); CMS and HHSC correspondence as reported by HFMA (September 2026)Part of
- Medicaid financing and eligibility operations
Provider taxes and state-directed payments
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More in Funding & Budget
FQHC Talent. (2026, August 31). CMS withholds approval of about $9.8 billion in Texas Medicaid payments. Source: The Texas Tribune (August 31, 2026); CMS and HHSC correspondence as reported by HFMA (September 2026). Retrieved November 11, 2026, from https://www.fqhctalent.com/intel/tx-chirp-supplemental-medicaid-withheld-september-2026