Dissecting the Deepest Cuts: Medicaid Provider Taxes and New H.R. 1 Restrictions

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.