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The Agency did not explain why its inconsistent treatment of the costshere - - sometimes splitting the federal share between Medicare andMedicaid and sometimes allocating it entirely to Medicare - - is eitheraccurate or appropriate . The State contended that theAgency should use the entire revised PRD because it is more accurate andis consistent in its allocation of the federal share between Medicareand Medicaid for all categories of facilities . That decision was based on the decision in the Universal Service Order to fund only the federal share , or 25 percent , of high cost support from the federal mechanism , discussed below . Federal withhold : In general , OES withholds 25 % of the federal share until final inspection for state agencies and private non-profits ; 10 % of the federal share for cities and counties . Thus , the funds had been previously disbursed to the provider , recovered back from the provider , and held in an interest-bearing account pending repayment of the federal share , not pending disbursement to the provider . The federal share for projects funded through these programs is 80 percent . The reviewers found that , while the State had collected most of these erroneous payments from the providers , and adjusted the federal share , the State had been unable to recover some of the payments because the providers had filed petitions in bankruptcy . " A letter describing the method CMS will use to determine the exact increase in each state 's federal share , beginning with the current quarter , was released to states today and is available on the Web at http://cms.hhs.gov/states/letters . In the Order to Show Cause , the Board explained in detail how it arrived at the rate of 91 percent federal share for the Year 01 grant and 88 percent for the Year 04 grant . The one-time grant to UTMB of approximately $ 110 million will provide the federal share for funding construction of the NBL . It will be a big plus in bringing more dollars to the west and putting more equality across Canada and more equality on the federal share across Canada . Senator Harkin ( IA ) will offer an amendment that phases in mandatory increases to fully fund the federal share over some six years ( based on S. 939 ) .