Schools Face a Cut in Medicaid Funding

The Bush administration worried that the Medicaid funding was being spent on educational activities.

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A number of services many schools provide to students, including immunizations and transportation to therapy sessions, could soon face budget problems. In late December, the Bush administration cut annual Medicaid reimbursement funding by $700 million. School districts will continue to be eligible for Medicaid funding for the actual medical costs of things such as physical therapy sessions but will be unable to seek reimbursement for the clerical costs of planning these services. The Bush administration was concerned that the Medicaid funding was being spent on educational activities.