by Terri Langford, The Texas Tribune September 17, 2026 Nearly $12 billion in Medicaid funding to Texas hospitals will be restored, Gov. Greg Abbott said Thursday, ending a near year-long impasse between Texas and the federal government.

"This funding is a major victory for Texas patients," Abbott said in a statement.

"It authorizes nearly $12 billion for hospitals, physicians, rural clinics, nursing facilities, and behavioral health providers that serve patients in every region of our state. Emergency rooms will stay open, rural families will retain local care, and Texans will have access to the treatment they need. I thank CMS and the Trump Administration for helping ensure Texans get the medical care they need." The halt of the funds began on Sept. 1, the beginning of the state's new fiscal year.