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Texas AG files lawsuit against Biden admin over billions in funding, calls it a 'power grab'

The issue is technically over a Medicaid waiver extension.

Updated: May 14, 2021 - 9:59pm

The Facts Inside Our Reporter’s Notebook

Texas Attorney General Ken Paxton announced on Friday that he has filed a lawsuit against the Biden administration over a decision that could cost Texas billions of dollars that would have been going to state hospitals.  

The Biden administration rescinded a Medicaid waiver extension because, they said, the Trump administration "did not go through the full federal rulemaking process." Federal officials said that Texas could reapply in 2022, once the waiver extension expires, according to the Epoch Times

Paxton called the decision by the Biden administration a "power grab" that would prevent "stable funding for providers of healthcare for children, people with disabilities, and the elderly."

"Not only does this violate agency regulations and threaten to rip a $30 billion hole in Texas's budget, it was clearly intended to force our state into inefficiently expanding Medicaid under the Patient Protection and Affordable Care Act," Paxton stated. "This would be a disaster for our state, and yet President Biden seems intent on thrusting his bloated model of government on everyone—including Texas."