Washington, DC--Congressman Eliot Engel (D-NY-17) released the following statement today after meeting with House Speaker Nancy Pelosi to urge the support of an extension of the enhanced Federal Medical Assistance Percentage (FMAP) rate to save New York State from scheduled deep and damaging budget cuts.   Rep. Engel is a senior member of the House Energy and Commerce Committee’s Subcommittee on Health.

FMAP is used in determining the amount of Federal matching funds for State expenditures for assistance payments for certain social services, and State medical and medical insurance expenditures. A higher FMAP will ensure that the share of Medicaid costs that is paid for by the federal government will increase, and each state’s share will decrease, freeing up scare dollars for other necessary programs.

"New York State needs an extension of FMAP to prevent the state from having to make difficult choices – such as how many teachers to let go, or who will not receive adequate health care.  Based on the enhanced FMAP provisions in the Recovery Act and the American Jobs and Closing Tax Loopholes Act, and its inclusion in President Obama’s budget, New York has assumed in its budget negotiations that the FMAP extension would be in place.  Unfortunately, it has faced opposition in both Houses and its fate remains uncertain. 

“If an extension of the enhanced FMAP is not passed, New York and other states will be forced to make deep spending cuts which will greatly hurt millions of Americans who can least afford them.  I have urged Speaker Pelosi to find a way to include this extension –as part of the pending jobs and unemployment legislation currently awaiting agreement between the House and Senate.  Over 200 members of the House signed a letter in May urging the extension.

“This is not solely a New York issue, but I can only speak on behalf of my fellow New Yorkers and our local leaders when I say that we need to help our states deal with their budgets or else we would just be passing along the bad news for others to deliver.  We must work hand-in-hand with the states to prevent devastating cuts which will only lead to more hardship for working families.”

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