Congress Reauthorizes Children’s Health Insurance Funding that Serves Over 125,000 Minnesota Kids

Restoration of CHIP funding protects health care coverage for low-income Minnesota families for the next six years

Restored federal funding anticipated for Minnesota, helping to address the state’s projected $188 million budget deficit

ST. PAUL, MN – The United States Congress today reauthorized funding for the Children’s Health Insurance Program (CHIP), after previously failing to extend funding and allowing it to expire last fall. The new measure, which is expected to be signed into law by President Donald Trump, would restore full federal funding for the program for the next six years. In Minnesota, CHIP connects more than 125,000 Minnesota kids and low-income families with essential health care coverage.

The following is a statement from Human Services Commissioner Emily Piper:

“I'm relieved that Congress finally passed a reauthorization of CHIP, a program that serves over 125,000 children and pregnant women in Minnesota. Healthcare for Minnesotans has faced a lot of uncertainty over the past year and the stability that this brings, even if overdue, helps families with kids and new and expecting moms across Minnesota continue to receive access to the healthcare they need when they need it. Thank you to Minnesota Senators Amy Klobuchar and Tina Smith for their efforts to secure this urgently needed funding.

“It is disappointing, however, that Congress has not included a reauthorization of funding for community health centers in this legislation. Community health centers in Minnesota are important partners in providing access to high quality health care to low-income families and are on the brink of having to lay off staff and close sites in Greater Minnesota because Congress has not continued their funding beyond March. Ensuring funding stability for all these programs is critical to continuing Minnesota’s strong health care safety net.”

The following is a statement from Management and Budget Commissioner Myron Frans:

“The reauthorization of CHIP funding will have an immediate positive budget impact on Minnesota. We are grateful to Senators Amy Klobuchar and Tina Smith for their work to restore funding for this essential program, which benefits so many children and families across our state.”

Now that Congress has restored federal funding, the $178 million gap in Minnesota’s recent budget forecast will be addressed by the additional federal CHIP funding, which will help address the projected $188 million budget deficit Minnesota faces under a recent budget forecast. Additional detail on the impact of CHIP funding for Minnesota’s fiscal outlook will be included in the upcoming February budget and economic forecast.

About the Minnesota Children’s Health Insurance Program

States use CHIP funds to either expand their Medicaid program, create a separate CHIP program, or do some combination of the two. Because Minnesota already covered most of the children intended to be covered under the program, Minnesota has used CHIP funds to expand our state’s Medicaid program, also known as Medical Assistance. Today, the program helps fund health care coverage for 125,000 children on Medicaid, 1,700 pregnant women ineligible for Medicaid, and 200 infants under the age of two.

Additional information on CHIP in Minnesota can be found on the Department of Human Services website.

###