The bill appropriates additional funds to the Department of Health and Welfare for the Division of Medicaid for fiscal years 2025 and 2026, while also reducing certain appropriations for the Expansion Medicaid Plan. Specifically, it includes new appropriations from the Cooperative Welfare (Federal) Fund, totaling over $107 million for fiscal year 2026, and additional amounts for various Medicaid plans, including the Enhanced and Basic Medicaid Plans. The bill also mandates the Division of Medicaid to explore outpatient addiction treatment options and to report on its findings, as well as to transition multi-year contracts to align with the state's fiscal year to enhance transparency.

Furthermore, the bill establishes federal funding restrictions, ensuring that state funds are not used to replace lost federal funds without legislative approval. It requires the Division of Medicaid to submit annual reports on the Emergency Medicaid program and outlines conditions, limitations, and restrictions on the appropriations made. The bill declares an emergency, making certain sections effective immediately upon passage, while others will take effect on July 1, 2025.