Medicaid Improvement for Insular Areas Act of 2025

This bill removes a long-standing federal funding cap that restricted Medicaid spending in U.S. territories. It eliminates the funding limitation (referred to as "Section 1108(f)") for Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa, effective fiscal year 2025. The key change means these territories will no longer face a cap on federal Medicaid funds, allowing them to access full federal matching dollars for their Medicaid programs. This directly affects the Medicaid programs and residents of these five insular areas by enabling more flexible and potentially expanded coverage.