Fair Funding for Rural Hospitals Act

Senate Bill

S. 474

119th Congress

Fair Funding for Rural Hospitals Act

In Committee

Introduced:Feb 6, 2025

Primary Sponsor

John Barrasso

R - WY

Cosponsors

3

Quick Stats

Policy Area

Health

Summary

This bill establishes a minimum funding allotment of 20 million dollars per state for Medicaid disproportionate-share hospitals from 2025 through 2029, with inflation adjustments afterward. This ensures rural hospitals treating many low-income patients receive baseline federal support regardless of other funding calculations.

Latest Action

Read twice and referred to the Committee on Finance. (text: CR S796)

AI Summary

Plain-English explanation of this bill

This bill establishes a minimum funding allotment of 20 million dollars per state for Medicaid disproportionate-share hospitals from 2025 through 2029, with inflation adjustments afterward. This ensures rural hospitals treating many low-income patients receive baseline federal support regardless of other funding calculations.

Last updated: 1/5/2026

Official Summary

Congressional Research Service summary

Fair Funding for Rural Hospitals ActThis bill establishes a minimum funding allotment for Medicaid disproportionate-share hospitals (DSHs). (DSHs are hospitals that receive additional payments under Medicaid for treating a large share of low-income patients.)Specifically, the bill establishes a minimum allotment of $20 million per state for FY2025-FY2029, increased for inflation in subsequent years, despite any required reductions or other applicable funding calculations.

Key Points

Main provisions of the bill

Sets 20 million dollar minimum DSH allotment per state
Applies to fiscal years 2025 through 2029
Inflation adjustments for years after 2029
Overrides required reductions or other calculations
Protects hospitals serving high share of low-income patients

How This Impacts Americans

Potential effects on citizens and communities

Rural hospitals that serve many low-income patients would be guaranteed minimum federal support even when formula calculations would result in lower payments. This could help prevent rural hospital closures and maintain access to care in underserved areas.

Policy Areas

Primary Policy Area

Health

Related Subjects

Health care coverage and access

Health facilities and institutions

Medicaid

Rural conditions and development

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

474, 119th Congress (2025). "Fair Funding for Rural Hospitals Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-474