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Florida Gov. Rick Scott will not drop his lawsuit against the federal government until the Obama administration makes a decision on the Legislature’s proposal for $2 billion in shared spending next year for hospital payments and a raise in Medicaid rates, according to a notice filed in the case this week. Scott filed the notice Tuesday to withdraw a prior request that the U.S. District Court in Pensacola compel the Department of Health and Human Services to continue a hospital funding program that’s set to expire on June 30, leaving the state with a budget hole. (Chang, 6/17)

Pointing to a budget agreement reached by lawmakers, Gov. Rick Scott's attorneys late Tuesday withdrew a request for a preliminary injunction in a legal battle with the Obama administration about health care funding, according to a notice filed in federal court in Pensacola. The notice, however, said Scott is not withdrawing the overall lawsuit, which contends that the federal government has tried to unconstitutionally link expanding Florida's Medicaid program with the continuation of the Low Income Pool, or LIP, program. (6/17)

New Mexico survived a collapse of oil and natural gas revenues, but more budget problems are on the horizon because of the state's expansion of Medicaid coverage for low-income residents as part of the federal health care overhaul, a top legislative official warned Wednesday. More than 216,000 people have been added to the Medicaid rolls in New Mexico, bringing the total to nearly 800,000. David Abbey, director of the Legislative Finance Committee, told lawmakers during a meeting in Santa Fe that once the rate of federal cost-sharing for the expansion drops to 90 percent, New Mexico's share will balloon to about $120 million. (Bryan, 6/17)