Budget Brief 23-02
January 13, 2023

Fiscal year (FY) 2023 appropriations were signed into law on December 29, 2022. They were part of a massive omnibus bill that included disaster relief and a multitude of legislative provisions. This brief describes funding and policy provisions in the budget affecting health programs, which were part of the Labor/Health and Human Services (HHS)/Education portion of the law. It also summarizes the major components of Division FF, which includes several pieces of legislation affecting health programs; subsequent reports will provide a detailed analysis of the program reauthorizations in that division.  

In general, the budget agreement:

  • Provides increased funding for most programs covered in this brief
  • Decouples Medicaid continuous coverage and the 6.2 percentage-point increase in the Federal Medical Assistance Percentage (FMAP) from the COVID-19 public health emergency (PHE) by phasing out the FMAP increase and allowing Medicaid redeterminations to begin on April 1
  • Makes numerous other changes to Medicaid and the Children’s Health Insurance Program (CHIP)
  • Reauthorizes many discretionary grants within the Substance Abuse and Mental Health Services Administration (SAMHSA) and other HHS agencies

The information in this brief is from legislative text, the explanatory statement accompanying the Labor/HHS/Education portion of the bill, and the House Appropriations Committee report (which the explanatory statement indicates should be complied with unless specifically addressed otherwise).