The Virginia House and Senate split over whether to accept federal Medicaid funds to expand health insurance to as many as 400-thousand low-income residents.
The Republican controlled House voted against the expansion of eligibility when they approved their version of the state budget.
Meanwhile, the Democratically controlled Senate with a few Republicans going along voted for the expanded coverage.
The new federal law reimburses the state for the expansion but the U.S Supreme has ruled that it is up to the individual state as to whether it wants to accept the federal money.
Republicans charge that the current program needs to be reformed before it is expanded.