Since 2013, Congress has repeatedly delayed or repealed scheduled cuts to the Medicaid Disproportionate Share Hospital (DSH) program in response to coordinated advocacy by the Texas Hospital Association and others. These payments compensate hospitals that treat a disproportionate number of uninsured and Medicaid patients and are critical to sustaining the safety net.
THA is asking for Congress to once again protect patient care by delaying or permanently repealing three years of cuts that are now scheduled to go into effect starting Oct. 1, 2025. The cuts for federal fiscal year (FY) 2026 alone would cost Texas safety-net hospitals around $800 million and more than $2 billion over the next three years combined (FYs 2026-2028). These funding cuts are unsustainable, especially considering Texas leads the nation with about 16% of its population lacking health insurance.
THA has calculated the number of DSH hospitals and previously scheduled reduction amounts for each of the 38 U.S. House districts for FY 2026. See THA’s district-specific explainers listed below for details.