Montgomery, AL – State Medicaid officials and the federal government are reporting progress toward resolving a funding dispute. State governments are supposed to support 30 percent of all Medicaid costs. The federal government supports 70 percent. But federal officials have complained Alabama has taken more than its fair share because of how it uses the money. But state officials say their practice is legal. The dispute has lingered for years. State Medicaid spokesperson Mary Finch says the two sides have worked out the framework of a possible deal, but it hasn't yet been approved.