H.R. 3581 — Protect DSH Act

This section delays annual reductions in state Medicaid disproportionate share hospital (DSH) allotments (i.e., additional payments to hospitals serving high volumes of low-income and Medicaid patients) from fiscal years (FY) 2026 through 2028 to FY2029 through 2031. (Thus, states retain higher DSH allotments during FY2026 through 2028.) The section also extends the related transition provision through 2031 (from 2027).