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Local Funds Monitoring


The Provider Finance Department (PFD) 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.

In accordance with Texas Health and Human Services (HHSC) rules Title 1 Texas Administrative Code Chapter 355, Subchapter L, Local Funds Monitoring, LFM monitors the source of LGE funds from jurisdictions that transfer public funds via IGT to support Medicaid payments programs for certain directed and supplemental payment programs.


October 2023 – FFY 2023 Annual Reporting

The FFY 2023 Annual Reporting for the Local Funds Tracking System (LoFTS) closed on October 31, 2023, at 11:59 pm.

LFM begins LoFTS reporting reconciliation and wind-down activities on Wednesday, November 1. We will resume responding to emails, calls, and voicemails regarding LoFTS reporting on Monday, November 6, in the order they are received.

Annual Reporting/LoFTS

LoFTS is the reporting system LFM uses for annual reporting. To submit supplemental supporting documentation, you can login to LoFTS here.

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

View the preliminary FFY 2023 LFM Annual Reporting Fast Facts about LoFTS reporting here.

Reporting Resources

User Guides and Training Materials

View the FFY 2023 LoFTS Presentation - Registration and Resources Information

View the FFY 2023 LoFTS User Guide - Registration, Login, & Module Determination

View the FFY 2023 LoFTS User Guide - Funding Source Statement

View the FFY 2023 LoFTS User Guide - Module 1

View the FFY 2023 LoFTS User Guide - Module 2

View the FFY 2023 LoFTS User Guide - Module 3

View the FFY 2023 LoFTS FAQs (Updated 10/12/2023)

View the FFY 2023 LoFTS Nursing Facilities with CHOWS - Active and Closed

View the FFY 2023 Comprehensive Hospitals List from Texas HHS Regulatory Data: This list combines the Texas HHS General and Specialty Hospitals with the Texas HHS Private Psychiatric Hospitals and lists each hospital by county.

Recorded Meetings

View the FFY 2023 LoFTS MS Teams Meeting - Video of SHARS Session 1: The post Q&A session that occurred following this meeting has been incorporated into written FAQs.

View the FFY 2023 LoFTS MS Teams Meeting - Video of LPPF Meeting

View the FFY 2023 LoFTS MS Teams Meeting - Video of NON-LPPF Meeting

View the FFY 2023 LoFTS MS Teams Meeting - Video of LGEs who use CPEs for UC Ambulance and PHP-CCP Meeting

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

View the FFY 2022 87R Rider 15(b) Report (.pdf)


Contact Information


Phone: 737-867-7877

Statutes and Rules

Detailed requirements for eligible non-federal funds can be found in federal statute and in federal regulation.

Rules governing the LFM review and reporting processes can be found in the Texas Administrative Code.

General Information

View the LPPF Overview here. ( Updated 07/26/2023).

View the Local Provider Participation Funds Map (.pdf)

View the LPPFs with their enabling legislation and statutory authority (.pdf)

View the Texas Medicaid CHIP SDA Map effective January 2022 (.pdf)


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

Court Documents

View the HHSC Complaint (April 2023) (PDF)

View the Motion for Preliminary Injunction (April 2023) (PDF)

View the Order Granting Preliminary Injunction (June 2023)(PDF)