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1 Answers to Questions Related to Federal Funding for State and Local Governments 1 (May 13, 2020)

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       CONGRESSIONAL BUDGET OFFICE                       Phillip L. Swagel, Director
       U.S. Congress
       Washington, DC 20515




                                             May 13, 2020



Honorable John Yarmuth
Chairman
Committee on the Budget
U.S. House of Representatives
Washington, DC 20515

Re: Answers to Questions Related to Federal Funding for State and Local Governments

Dear Mr. Chairman:

During my presentation to the Budget Committee that you organized last month, I offered
to provide more information about topics of particular interest to its members.'
Congresswoman Schakowsky asked several sets of questions related to federal funding
for state and local governments, and this letter provides answers.

Medicaid
The first set of questions was about the effects of the 2020 coronavirus pandemic on
Medicaid. The sharp rise in unemployment caused by the pandemic will increase
enrollment in the program. Many of the new enrollees will have experienced sudden
declines in income, and some will have become sick because of the pandemic. Some
would otherwise have been covered by employment-based health insurance or nongroup
coverage subsidized through premium tax credits. Some would otherwise have been
uninsured but with too much income to be eligible for Medicaid. Others would have been
eligible for Medicaid but nevertheless unenrolled. New enrollees may sign up on their
own or be enrolled by providers at the point of service.






1 See Phillip Swagel, Director, Congressional Budget Office, CBO's Current Economic Projections and a
Preliminary Look at Federal Deficits and Debt for 2020 and 2021 (presentation to the House Budget Committee,
April 27, 2020), www.cbo.gov/publicatioii/56344.