When the state's new fiscal year begins on Tuesday, Texas hospitals expect to lose $27 million a day in additional Medicaid funding.

The shortfall is the result of a decision by the Trump administration to withhold approval from Texas for about $9. 8 billion in the next year from three programs, the bulk of which affects the Comprehensive Hospital Increase Reimbursement Program (CHIRP).

This program gives hospitals additional funding to cover the difference between Medicaid rate payments and the actual costs that hospitals incur to provide services to Medicaid patients.