Medicaid and State Budgets: From Crunch to Cliff

This fact sheet discusses the status of Medicaid and state budgets in light of the continuing recession and the federal fiscal relief provided to state Medicaid programs through the American Recovery and Reinvestment Act (ARRA). The ARRA money has helped address budget shortfalls, preserve Medicaid eligibility and soften program cuts. But ARRA funds are set to expire on Dec. 31, 2010, which may prompt some states to turn to cost-saving measures such as restrictions on Medicaid eligibility.