For Members:

Working Families Tax Cut Legislation Resource Center

America’s Essential Hospitals Responds to Proposed CMS Cuts to State-Directed Payments

May 21, 2026
Jamie Cetrone

FOR IMMEDIATE RELEASE

Statement attributable to:
Jennifer DeCubellis
President and CEO
America’s Essential Hospitals

Washington, D.C. — CMS’ proposed cuts to state-directed payments (SDPs) go far beyond what Congress intended. By cutting SDPs by hundreds of billions of dollars more than the Congressional Budget Office projected, CMS will devastate essential hospitals’ ability to provide high quality care to the patients and communities they serve.

SDPs are longstanding tools that states have used to improve access to care for the most vulnerable patients, creating a financial lifeline for essential hospitals that are already facing daunting challenges.

We look forward to working with CMS to protect and support these tools to ensure that states have the flexibility they need to target limited resources to the hospitals that need them the most. 

# # #

About America’s Essential Hospitals
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to high-quality care for all, including those who face social and financial barriers to care. Since 1981, America’s Essential Hospitals has advanced policies and programs that promote health and access to health care. We support our more than 400 members with advocacy, policy development, research, education, and leadership development. Communities depend on essential hospitals for care across the continuum, health care workforce training, research, public health, and other services. Supported by Essential Hospitals Institute, the association’s research and education arm, essential hospitals innovate and adapt to lead all of health care toward better outcomes and value.

Contact: 
James Swann
Director of Communications
jswann@essentialhospitals.org
202.585.0102