Property Tax Reduction Act of 2022
Bill: H.R.8530 | Sponsor: Rep. Jacobs, Chris (R-NY)
Policy area: Health

Summary:
Property Tax Reduction Act of 2022
This bill reduces federal Medicaid funding beginning in FY2025 for certain states that require political subdivisions to contribute funds towards medical assistance. Specifically, the bill applies to states that received, for FY2022, disproportionate share hospital (DSH) allotments greater than six times the national average. (DSHs are hospitals that receive additional payment under Medicaid for treating a large share of low-income patients.)
Excepted from the bill are contributions that: (1) are required from a political subdivision that has a population greater than 5 million and imposes a local income tax upon its residents, or (2) were required for administrative expenses as of January 1, 2022.

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Property Tax Reduction Act of 
2022''.

SEC. 2. REDUCTION OF FEDERAL FINANCIAL PARTICIPATION (FFP) FOR CERTAIN 
              STATES THAT REQUIRE POLITICAL SUBDIVISIONS TO CONTRIBUTE 
              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 Required by Political 
Subdivisions.--
            ``(1) In general.--Notwithstanding the previous 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 political 
        subdivisions within the State to contribute funds towards 
        medical assistance or other expenditures 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), 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 contributions 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 contributions from such 
                subdivision without reimbursement from the State as of 
                January 1, 2022.
            ``(3) Applicable percentage.--For purposes of paragraph 
        (1), the applicable percentage described in this paragraph is--
                    ``(A) with respect to fiscal year 2025, 25 percent;
                    ``(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.''.
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