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February 27, 2009, 4:50 p.m. CT

Jen Rae Hein, Gov’s Office
Ashley Cradduck, Gov’s Office



Nebraska to Receive First Stimulus Funding for Medicaid, $38 Million

(Lincoln, Neb.) Gov. Dave Heineman today announced that Nebraska will receive a temporary increase in Federal Medical Assistance Percentage (FMAP) funding through the federal American Recovery and Reinvestment Act (ARRA). The Nebraska Department of Health and Human Services begun processing the first in a series of federal fund draws today, totaling nearly $38 million.

FMAP funds are reimbursements from the federal government for services paid for by the state. Services for Medicaid-eligible individuals are paid for with a combination of state and federal funds. The state pays service providers and is later reimbursed for the federal share of costs.

This temporary Medicaid match will be retroactive to Oct. 1, 2008, and extend through Dec. 31, 2010, resulting in an estimated increase of $227.7 million.

The ARRA involves more than 50 state programs, including: enhanced Medicaid funding, highway infrastructure funding, the drinking water revolving loan fund, state energy programs, home weatherization services, the state fiscal stabilization fund for elementary and secondary education, Title I school improvement grants, special education funding, violence against women grants, a weekly unemployment insurance benefit increase of $25, broadband infrastructure projects, transitional medical assistance, and temporary assistance for needy families.

The Governor will launch a website detailing how federal stimulus funds are spent in Nebraska. The federal ARRA website is available at


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