President Obama's proposed 2011 budget includes a six-month extension of enhanced Medicaid payments to states.

The enhanced payments, originally part of the president’s stimulus package, are intended to help states maintain Medicaid spending in the face of reduced revenues and higher unemployment rates. The additional $ 2.5 billion would be available through June 2011.

Of the $3.8 trillion budget, $900 billion is allocated for HHS, with $818 billion dedicated to Medicare. Discretionary spending is increased $1.7 billion, to $82.2 billion.

Besides the extension in Medicaid funding, the budget allocates an additional $2 million to the Office of Inspector General to fight fraud and abuse and $286 million to the Agency for Health Research and Quality.

Healthcare information technology and rural healthcare also receive additional funds in the proposed budget.