The Biden administration is withdrawing from a lawsuit against Texas’ waiver of medicine, which the Trump administration approved in its last week in office, saying the annual lawsuit had overwhelmed federal government resources.

Last spring, the Centers for Health Services and Medical Services revoked the 10-year waiver for the Texas Medicaid program, which the Trump administration approved on January 15, 2021, without passing the required period of public comment. The provision, which extended the state’s waiver for ten years, included significant money for health workers to cover the cost of caring for uninsured patients. Texas sued the Biden administration and, in August, a federal district court judge. resumed the refusal. With the CMS’s decision not to challenge this judge’s ruling, the provision will continue until 2030.

“The district court’s ruling on the previous ban did not address key legal issues,” said CMS administrator Chikita Brooks-LaSour. wrote in a letter to Texas. “However … CMS has concluded that continuing to consider this case is not the best use of the federal government’s limited resources.”

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