The $25 billion was originally intended to fund healthcare reform after a bill had passed. The stall of reform efforts will allow the $25 billion to go toward extending by six months the Medicaid funding increase given to states as party of last year’s stimulus package, according to the report.
The extended Medicaid increases are intended to cushion any strain on state budgets as effects of the recession has led to increases in Medicaid recipients.
Read the Wall Street Journal’s report on Medicaid funding.