FMAP Extension and the Impact on States

 

April 29, 2010

The ongoing congressional debate on Capitol Hill over whether to provide a six-month extension to the enhanced Federal Medical Assistance Percentages (FMAP) for states could have some major consequences on state budgets for the upcoming fiscal year. The $25.5 billion extension of provisions in the American Recovery and Reinvestment Act (ARRA) would cover the period between Jan. 1, 2011 and June 30, 2011, which represents the second half of fiscal year (FY) 2011 for nearly all states. Increasing demands that any “jobs,” supplemental appropriations or emergency legislation be offset with revenue adjustments or spending reductions has emerged as the dominant factor in potential passage of H.R. 4213, the FMAP extension bill, and related legislation.
 

This brief provides information on all 50 states. It is based on data collected from legislative fiscal directors in April 2010. It includes information on: 

  •  Whether states have budgeted on the assumption that Congress will approve a six-month extension to the FMAP.
  • How much states have budgeted for the FMAP extension.
  • Whether states have developed any budget contingencies in the event the FMAP is not extended by Congress.

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