I 

115TH CONGRESS 

1ST SESSION H. R. 1871 

To amend title XIX of the Social Security Act to reduce Federal financial 

participation for certain States that require political subdivisions to contribute towards the non-Federal share of Medicaid. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 4, 2017 

Mr. FASO (for himself, Mr. COLLINS of New York, Mr. REED, Ms. TENNEY, 

Ms. STEFANIK, and Mr. ZELDIN) introduced the following bill; which was 

referred to the Committee on Energy and Commerce 

A BILL 

To amend title XIX of the Social Security Act to reduce 

Federal financial participation for certain States that 

require political subdivisions to contribute towards the 

non-Federal share of Medicaid. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Property Tax Reduc5 tion Act of 2017’’. 


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1 SEC. 2. REDUCTION OF FEDERAL FINANCIAL PARTICIPA2 TION (FFP) FOR CERTAIN STATES THAT RE3 QUIRE POLITICAL SUBDIVISIONS TO CON4 TRIBUTE TOWARD NON-FEDERAL SHARE OF 

5 MEDICAID. 

6 (a) IN GENERAL.—Section 1903 of the Social Secu7 rity Act (42 U.S.C. 1396b) is amended by adding at the 

8 end the following new subsection: 

9 ‘‘(aa) REDUCTION IN FFP FOR CONTRIBUTIONS RE10 QUIRED BY POLITICAL SUBDIVISIONS.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding the pre12 vious provisions of this section, in the case of a 

13 State that had a DSH allotment under section 

14 1923(f) for fiscal year 2016 that was more than 6 

15 times the national average of such allotments for all 

16 the States for such fiscal year and that requires po17 litical subdivisions within the State to contribute 

18 funds towards medical assistance or other expendi19 tures under the State plan under this title (or under 

20 a waiver of such plan) for a quarter in a fiscal year 

21 (beginning with fiscal year 2020), in determining the 

22 amount that is payable to the State for expenditures 

23 in such quarter under subsection (a)(1), the amount 

24 of such expenditures shall be decreased by the 

25 amount that political subdivisions in the State are 

26 required to contribute under the plan (or waiver) 


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1 without reimbursement from the State for such 

2 quarter, other than contributions described in para3 graph (2). 

4 ‘‘(2) EXCEPTED CONTRIBUTIONS.—The con5 tributions described in this paragraph for a fiscal 

6 year are the following: 

7 ‘‘(A) Contributions required by a State 

8 from a political subdivision that, as of the first 

9 day of the calendar year in which the fiscal year 

10 involved begins— 

11 ‘‘(i) has a population of more than 

12 5,000,000, as estimated by the Bureau of 

13 the Census; and 

14 ‘‘(ii) imposes a local income tax upon 

15 its residents. 

16 ‘‘(B) Contributions required by a State 

17 from a political subdivision for administrative 

18 expenses if the State required such contribu19 tions from such subdivision without reimburse20 ment from the State as of January 1, 2017.’’. 

Æ 


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