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Saturday, November 14, 2026Nov 14

Tennessee Republican lawmakers seeks to overhaul Medicaid with block grants

The Tennessee State Capitol downtown Nashville is shown in 2000.
The Tennessee State Capitol downtown Nashville is shown in 2000.

NASHVILLE, Tenn. (AP) – Tennessee Republican lawmakers who have long balked at taking millions in federal dollars to expand Medicaid advanced a plan Wednesday that would overhaul how the state provides health care to its lower-income and disabled residents.

GOP state lawmakers are moving forward on a proposal calling on the federal government to send Tennessee a fixed amount of money each year in the form of block grants. The bill still faces several key hurdles, but early GOP endorsements from top legislative leaders have signaled the legislation could reach the governor’s desk.

“This piece of legislation is long overdue,” said Rep. Matthew Hill, a Republican from Jonesborough. “Hopefully this will get Tennessee state tax dollars out of the federal government … What holds us back is quite frankly is funding, to be able to have control at the state level. This is the right thing to do.”

The proposal comes at a time when Tennessee has refused to expand the number of people eligible for Medicaid, as allowed under former President Barack Obama’s signature health care law. Thirty-one states have opted for the expansion, but Tennessee has resisted under a GOP-dominated Legislature.

And resistance has only strengthened with newly elected Republican Gov. Bill Lee. On the campaign trail, he frequently voiced opposition to Medicaid expansion, saying instead he wanted to find an alternative solution for the estimated 167,000 Tennesseans who don’t have health coverage.