Alexander Sponsors Legislation to Stop Washington from Forcing States to “Spend Money They Don’t Have”

Posted on May 3, 2011

WASHINGTON – U.S. Senator Lamar Alexander (R-Tenn.), chairman of the Senate Republican Conference, today cosponsored the State Flexibility Act, legislation that would amend the Medicaid Maintenance of Effort (MOE) requirements imposed on states by the stimulus and recent health care law. 

“Washington has a bad disease—it spends money that it doesn’t have—but the recent health care law goes way beyond that by requiring states to spend money they don’t have,” Alexander said.  “The purpose of this legislation is to fix that requirement, improve medical care, and help states live within their means.”

This legislation, which was introduced in response to a request by the National Governors Association, would repeal the Medicaid requirements and save $2.8 billion over five years, according to the Congressional Budget Office. 

U.S. Reps. Phil Gingrey (R-Ga.) and Cathy McMorris Rodgers (R-Wash.) have introduced companion legislation, H.R. 1683, in the U.S. House of Representatives.