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Local Funding


The Provider Finance Department (PFD) Local Funding (LF) team, previously known as the Local Funds Monitoring (LFM) team, monitors the non-federal share funds of Medicaid payments that are provided by local governmental entities. The non-federal share funds are received by HHSC via an intergovernmental transfer (IGT) or through a certified public expenditure (CPE) process. HHSC, as the state Medicaid agency, is responsible for ensuring that all funds received from local governmental entities (LGEs) are permissible sources of non-federal share.

LF is comprised of the following teams:

  • Reporting Team – compiles and publishes both legislative and ad hoc reporting, maintains and manages LGE information, and conducts post determination reviews (PDRs).
  • Review Team – annually reviews funds that are transferred or certified by LGEs as the non-federal share of Medicaid supplemental and directed payments to ensure they comply with state and federal law and associated reporting requirements.
  • Payments Team – ensures IGT is received from LGEs, and payments are distributed to providers from directed and supplemental payment programs.


The Payments Team was transferred from Business Operations and Support Services (BOSS) to the Local Funding team in December of 2023. You can learn more about the Payments Team by going to the PFD Supplemental Payments website.

Annual Reporting/LoFTS

LoFTS is the reporting system LF uses for annual reporting. To submit supplemental supporting documentation, you will need login to LoFTS.

Reporting is now closed. The Reporting Resources for October FFY 2023 will remain on the LF website until preparations for October FFY 2024 begin.

For more information about LoFTS annual reporting, please see the “Reporting Resources” section, and also the preliminary FFY 2023 LF Annual Reporting Fast Facts.

Reporting Resources

Reporting Resources

FFY 2023 LoFTS Registration Information

FFY 2023 LoFTS User Guides

FFY 2023 LoFTS Reporting Materials

Recorded Meetings

FFY 2023 LoFTS MS Teams Meetings

External Reports 

In accordance with the requirement of the 2023-24 General Appropriations Act, House Bill 1, 88th Legislature, Regular Session, 2023 (Article II, Health and Human Services Commission, Rider 15 (b)), the Texas Health and Human Services Commission (HHSC) must report certain financial, expenditure, and survey information regarding the use of local funds in the Medicaid program.

Rider Reports
Provider Feedback Surveys


Contact Information

Statutes and Rules

General Information


To receive GovDelivery notifications and alerts related to local funds please subscribe to Local Funding of Medicaid Payments.

Court Documents