I 

118TH CONGRESS 

1ST SESSION H. R. 1523 

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 

MARCH 9, 2023 

Ms. TENNEY (for herself, Mr. LANGWORTHY, Mr. WILLIAMS of New York, 

and Ms. STEFANIK) 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 2023’’. 


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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 Section 1903 of the Social Security Act (42 U.S.C. 

7 1396b) is amended by adding at the end the following new 

8 subsection: 

9 ‘‘(cc) 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 2023 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 2025), in determining the 

22 amount that is payable to the State for expenditures 

23 in such quarter under subsection (a)(1), other than 

24 contributions described in paragraph (2), the 

25 amount of such expenditures shall be reduced by the 

26 applicable percentage described in paragraph (3), 


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1 with respect to such fiscal year, of the amount that 

2 political subdivisions in the State are required to 

3 contribute under the plan. 

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, 2023. 

21 ‘‘(3) APPLICABLE PERCENTAGE.—For purposes 

22 of paragraph (1), the applicable percentage de23 scribed in this paragraph is— 

24 ‘‘(A) with respect to fiscal year 2025, 25 

25 percent; 


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1 ‘‘(B) with respect to fiscal year 2026, 50 

2 percent; 

3 ‘‘(C) with respect to fiscal year 2027, 75 

4 percent; and 

5 ‘‘(D) with respect to fiscal year 2028 and 

6 each subsequent fiscal year, 100 percent.’’. 

Æ 


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