The federal government says it will no longer challenge Texas' Medicaid waiver. The U.S. Centers for Medicare and Medicaid Services announced Friday that it is ending the legal battle against the ten-year extension of the 1115 waiver that former President Trump granted shortly before leaving office. The waiver gives the state federal funding to reimburse hospitals for caring for the uninsured while allowing Texas to not expand its Medicaid plan under the Affordable Care Act. The CMS repealed the extension in April of last year, and Texas Attorney General Ken Paxton filed a lawsuit to reinstate it a month later.