Fair Funding for Rural Hospitals Act

This legislation, titled the "Fair Funding for Rural Hospitals Act," proposes to amend Title XIX of the Social Security Act to establish a minimum Medicaid Disproportionate Share Hospital (DSH) allotment for all states. The primary purpose is to ensure that states receive a foundational level of funding for hospitals that serve a disproportionately high number of low-income and uninsured patients. Specifically, the bill dictates that for fiscal year 2025 and each subsequent fiscal year, a state's DSH allotment cannot fall below a newly established minimum amount. For fiscal years 2025 through 2029, this minimum allotment is set at $20,000,000 . Starting in fiscal year 2030, this minimum DSH allotment will be subject to an annual increase for inflation, ensuring its value is maintained over time.