Additional allotments to address SCHIP funding shortfalls for fiscal year 2007

(a)

In general

Section 2104(h) of the Social Security Act (42 U.S.C. 1397dd(h)), as added by section 201(a) of the National Institutes of Health Reform Act of 2006 (Public Law 109–482), is amended— (1)in the heading for paragraph (2), by striking

remainder of reduction

and inserting

part

; (2)by redesignating paragraphs (4) through (7) as paragraphs (5) through (8), respectively; and (3)by inserting after paragraph (3), the following:

(4)

Additional allotments to address fiscal year 2007 funding shortfalls

(A)

Allotment authority

From the amount made available under subparagraph (F) for additional allotments under this paragraph, subject to subparagraphs (C) and (D), the Secretary shall allot to each remaining shortfall State described in subparagraph (B) such amount as the Secretary determines will eliminate the estimated shortfall described in such subparagraph for the State for fiscal year 2007. (B)

Remaining shortfall State described

For purposes of subparagraph (A), a remaining shortfall State is a State with a State child health plan approved under this title for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of the date of the enactment of this paragraph, that the projected Federal expenditures under such plan for the State for fiscal year 2007 will exceed the sum of— (i)the amount of the State's allotments for each of fiscal years 2005 and 2006 that will not be expended by the end of fiscal year 2006; (ii)the amount of the State's allotment for fiscal year 2007; and (iii)the amounts, if any, that are to be redistributed to the State during fiscal year 2007 in accordance with paragraphs (1) and (2). (C)

Expenditure rules

(i)

Coverage only for populations eligible on October 1, 2006

Subparagraph (A) of paragraph (5) shall apply to the expenditure of amounts allotted to remaining shortfall States under this paragraph in the same manner as such subparagraph applies to the expenditure of amounts redistributed under paragraphs (1) and (2) of this subsection. (ii)

Coverage only for children or pregnant women with income that does not exceed 200 percent of poverty

A remaining shortfall State shall use amounts allotted under this paragraph only for expenditures for providing child health assistance or other health benefits coverage to an individual who is a child or pregnant woman who is eligible for such assistance or coverage under the State child health plan and whose family income does not exceed 200 percent of the poverty line for a family of the size involved. For purposes of the preceding sentence, a child’s or pregnant woman’s family income shall be determined solely on the basis of adjusted gross income and without regard to any income or resource methodologies applied under the State child health plan for purposes of determining eligibility under such plan. (D)

Proration rule

If the amount available under subparagraph (F) is less than the total amount of the estimated shortfalls determined by the Secretary under subparagraph (A), the amount of the estimated shortfall for each remaining shortfall State determined under such subparagraph shall be reduced proportionally. (E)

Rule of construction

Nothing in this subparagraph shall be construed as prohibiting a State from using non-Federal funds to provide child health assistance or other health benefits coverage for individuals who are not described in subparagraph (C)(ii) and paragraph (5)(A) and are otherwise eligible for such assistance or coverage under the State child health plan. (F)

Appropriation; allotment authority

For the purpose of providing additional allotments to remaining shortfall States under this paragraph there is appropriated, out of any funds in the Treasury not otherwise appropriated, $750,000,000 for fiscal year 2007.

(b)

Additional conforming amendments

Section 2104(h) of such Act (42 U.S.C. 1397dd(h)) (as so added), is further amended— (1)in paragraph (1)(B), by striking paragraph (4)(B) and inserting paragraph (5)(B); (2)in paragraph (2)— (A)in subparagraph (A), by striking paragraph (5)(B) and inserting subparagraph (6)(B); and (B)in subparagraph (B), by striking paragraph (4)(B) and inserting paragraph (5)(B); (3)in paragraph (6)(A) (as redesignated by subsection (a)(2)), by striking and (3) and inserting (3), and (4); and (4)in paragraph (7) (as so redesignated)— (A)in the first sentence— (i)by inserting or allotted after redistributed; and (ii)by inserting or allotments after redistributions; and (B)in the second sentence, by striking and (3) in accordance with paragraph (5) and inserting (3), and (4) in accordance with paragraph (6).