I 
117TH CONGRESS 
2D SESSION 
H. R. 8530 
To amend title XIX of the Social Security Act to reduce Federal financial 
participation for certain States that require political subdivisions to con-
tribute towards the non-Federal share of Medicaid. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2022 
Mr. JACOBS of New York (for himself, Mr. ZELDIN, and Ms. STEFANIK) in-
troduced the following bill; which was referred to the Committee on En-
ergy 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Property Tax Reduc-
tion Act of 2022’’. 
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SEC. 2. REDUCTION OF FEDERAL FINANCIAL PARTICIPA-
TION (FFP) FOR CERTAIN STATES THAT RE-
QUIRE POLITICAL SUBDIVISIONS TO CON-
TRIBUTE TOWARD NON-FEDERAL SHARE OF 
MEDICAID. 
Section 1903 of the Social Security Act (42 U.S.C. 
1396b) is amended by adding at the end the following new 
subsection: 
‘‘(cc) REDUCTION IN FFP FOR CONTRIBUTIONS RE-
QUIRED BY POLITICAL SUBDIVISIONS.— 
‘‘(1) IN GENERAL.—Notwithstanding the pre-
vious provisions of this section, in the case of a 
State that had a DSH allotment under section 
1923(f) for fiscal year 2022 that was more than 6 
times the national average of such allotments for all 
the States for such fiscal year and that requires po-
litical subdivisions within the State to contribute 
funds towards medical assistance or other expendi-
tures under the State plan under this title (or under 
a waiver of such plan) for a quarter in a fiscal year 
(beginning with fiscal year 2025), in determining the 
amount that is payable to the State for expenditures 
in such quarter under subsection (a)(1), other than 
contributions described in paragraph (2), the 
amount of such expenditures shall be reduced by the 
applicable percentage described in paragraph (3), 
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with respect to such fiscal year, of the amount that 
political subdivisions in the State are required to 
contribute under the plan. 
‘‘(2) EXCEPTED
CONTRIBUTIONS.—The con-
tributions described in this paragraph for a fiscal 
year are the following: 
‘‘(A) Contributions required by a State 
from a political subdivision that, as of the first 
day of the calendar year in which the fiscal year 
involved begins— 
‘‘(i) has a population of more than 
5,000,000, as estimated by the Bureau of 
the Census; and 
‘‘(ii) imposes a local income tax upon 
its residents. 
‘‘(B) Contributions required by a State 
from a political subdivision for administrative 
expenses if the State required such contribu-
tions from such subdivision without reimburse-
ment from the State as of January 1, 2022. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage de-
scribed in this paragraph is— 
‘‘(A) with respect to fiscal year 2025, 25 
percent; 
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‘‘(B) with respect to fiscal year 2026, 50 
percent; 
‘‘(C) with respect to fiscal year 2027, 75 
percent; and 
‘‘(D) with respect to fiscal year 2028 and 
each subsequent fiscal year, 100 percent.’’. 
Æ 
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