[FOXNEWS] The Biden administration was slapped with a lawsuit on Friday after Texas Attorney General Ken Paxton launched a suit countering changes to the state’s federally funded portion of Medicaid last month.In April, the administration rescinded a Trump-era eight-year extension to provide billions of dollars in federal funds annually for Texas’ uninsured residents, which was set to expire next year.
While the move does not revoke healthcare funding through 2022, Paxton called it an "unlawful abuse of power aimed at sovereign states."
"The Biden Administration cannot simply breach a contract and topple Texas’s Medicaid system without warning," he said in a Friday statement.
Texas has held a waiver agreement with the U.S. Centers for Medicare and Medicaid Services since 2011, which reimburses hospitals for the "uncompensated care" provided to uninsured individuals along with innovative health care projects.
The Trump-granted extension would have continued funding for hospital reimbursements through 2030 but would have dropped the innovation funds allotted through the waiver.