AUSTIN, Texas (Sept. 17, 2026) – After months of uncertainty and escalating concern, Texas hospitals hailed a major breakthrough today, with Gov. Greg Abbott’s announcement of federal approval of $12 billion in critical Medicaid funding for Texas patients and hospitals.
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This action removes the immediate threat of billions of dollars in lost healthcare funding that would have upended the Texas healthcare safety net and shuttered critical hospital service lines. Following months of sustained pressure, urgent calls for action and vocal concern about mounting losses – $27 million in losses per day for Texas hospitals – the resolution allows hospitals to move forward with greater certainty.
“We can breathe easier today. The Medicaid crisis hanging over our heads has been averted. We are deeply grateful to Gov. Abbott and other state and federal leaders who listened, took our concerns seriously and acted with urgency to protect Texas patients,” said John Hawkins, president/CEO of the Texas Hospital Association, which championed the movement toward a solution. “Hospitals can focus on what they do best – saving lives and caring for Texans. Our gratitude cannot be overstated.”
Starting Sept. 1, Texas hospitals and other Medicaid providers began losing $27 million every day the Centers for Medicare & Medicaid Services withheld approval of Texas’ Medicaid directed payment programs – critical funding that keeps hospitals staffed, service lines in operation and emergency rooms open. Additionally, these programs help bridge the persistent gap between Medicaid’s low base payment rates and the actual cost of providing care.
Texas hospitals are profoundly grateful for the work of Gov. Abbott, the Texas Health and Human Services Commission, congressional leadership and the federal government for working to restore critical funding that helps ensure the health of Texans and the hospitals that serve them.
About THA
Founded in 1930, the Texas Hospital Association is the leadership organization and principal advocate for the state’s hospitals and healthcare systems. Based in Austin, THA enhances its members’ abilities to improve accessibility, quality and cost-effectiveness of healthcare for all Texans. One of the largest hospital associations in the country, THA represents more than 85% of the state’s acute-care hospitals and healthcare systems, which employ some 400,000 healthcare professionals statewide.