Dissecting the Deepest Cuts: CMS Final Rule: Narrowing “Uniformity Waivers” for Medicaid Provider Taxes

The 2025 budget reconciliation law (H.R. 1) imposes major new restrictions on states’ ability to generate Medicaid provider tax revenue, including by narrowing states’ ability to obtain so-called “uniformity waivers.” On February 2, 2026, the Centers for Medicare and Medicaid Services (CMS) issued a final rule dictating how the agency will implement these new restrictions. Click the link below for a detailed explanation of Medicaid provider taxes, uniformity waivers and the implications of CMS’ new rule on states.