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 con-
tribute 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. 
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 2017’’. 
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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. 
(a) IN GENERAL.—Section 1903 of the Social Secu-
rity Act (42 U.S.C. 1396b) is amended by adding at the 
end the following new subsection: 
‘‘(aa) 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 2016 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 2020), in determining the 
amount that is payable to the State for expenditures 
in such quarter under subsection (a)(1), the amount 
of such expenditures shall be decreased by the 
amount that political subdivisions in the State are 
required to contribute under the plan (or waiver) 
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without reimbursement from the State for such 
quarter, other than contributions described in para-
graph (2). 
‘‘(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, 2017.’’. 
Æ 
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