Schools brace for impact if Congress cuts Medicaid spending

The Medicaid changes being advanced as part of the health overhaul are sounding familiar alarms for school districts still getting their financial footing after the Great Recession.

Administrators say services even beyond those funded by the state-federal health care program could be at risk should Congress follow through with the cuts.

Schools received $4 billion in annual Medicaid reimbursements. Administrators say any cut would be hard to absorb after state funding reductions and a weaker tax base.

The Senate is up next in efforts to replace the Obama-era health law, and school leaders are watching to see whether the cuts in the House bill survive.

The Congressional Budget Office has estimated a previous version of the House bill would cut state Medicaid subsidies by $880 billion over 10 years. 

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