Texas hospitals stand to lose millions of dollars a day in critical funding after the federal government began withholding Medicaid reimbursements on Sept. 1.

The funding cutoff, which totals an estimated $27 million daily across the state, targets three critical Medicaid reimbursement programs that act as financial lifelines for healthcare facilities, according to the Texas Hospital Association.

The decision by the Centers for Medicare and Medicaid Services (CMS) comes as the federal agency requires states to restructure how local tax funding is collected to match federal dollars.