Elimination of general Medicaid funding limitations (CAP) for territories

(a) In general Section 1108 of the Social Security Act (42 U.S.C. 1308) is amended— (1) in subsection (f), in the matter preceding paragraph (1), by striking subsections (g) and (h) and inserting subsections (g), (h), and (j); (2) in subsection (g)(2), in the matter preceding subparagraph (A), by inserting subsection (j) and after subject to; (3) in subsection (i), by striking paragraph (4); and (4) by adding at the end the following new subsection: (j) Sunset of medicaid funding limitations for puerto rico, the virgin islands, guam, the northern mariana islands, and american samoa Subsections (f) and (g) shall not apply to Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa beginning with fiscal year 2026.. (b) Conforming amendments (1) Section 1902(j) of the Social Security Act (42 U.S.C. 1396a(j)) is amended by striking, the limitation in section 1108(f),,. (2) Section 1903(u) of the Social Security Act (42 U.S.C. 1396b(u)) is amended by striking paragraph (4). (c) Effective date The amendments made by this section shall apply beginning with fiscal year 2026.