42 USC 1397dd - Allotments

U.S Code last checked for updates: Nov 22, 2024

§ 1397dd.

Allotments

(a)

Appropriation; total allotment

For the purpose of providing allotments to States under this section, subject to subsection (d), there is appropriated, out of any money in the Treasury not otherwise appropriated—

(1)

for fiscal year 1998, $4,295,000,000;

(2)

for fiscal year 1999, $4,275,000,000;

(3)

for fiscal year 2000, $4,275,000,000;

(4)

for fiscal year 2001, $4,275,000,000;

(5)

for fiscal year 2002, $3,150,000,000;

(6)

for fiscal year 2003, $3,150,000,000;

(7)

for fiscal year 2004, $3,150,000,000;

(8)

for fiscal year 2005, $4,050,000,000;

(9)

for fiscal year 2006, $4,050,000,000;

(10)

for fiscal year 2007, $5,000,000,000;

(11)

for fiscal year 2008, $5,000,000,000.1

 So in original. The period probably should be a semicolon.

(12)

for fiscal year 2009, $10,562,000,000;

(13)

for fiscal year 2010, $12,520,000,000;

(14)

for fiscal year 2011, $13,459,000,000;

(15)

for fiscal year 2012, $14,982,000,000;

(16)

for fiscal year 2013, $17,406,000,000;

(17)

for fiscal year 2014, $19,147,000,000;

(18)

for fiscal year 2015, for purposes of making 2 semi-annual allotments—

(A)

$2,850,000,000 for the period beginning on October 1, 2014, and ending on March 31, 2015, and

(B)

$2,850,000,000 for the period beginning on April 1, 2015, and ending on September 30, 2015;

(19)

for fiscal year 2016, $19,300,000,000;

(20)

for fiscal year 2017, for purposes of making 2 semi-annual allotments—

(A)

$2,850,000,000 for the period beginning on October 1, 2016, and ending on March 31, 2017; and

(B)

$2,850,000,000 for the period beginning on April 1, 2017, and ending on September 30, 2017;

(21)

for fiscal year 2018, $21,500,000,000;

(22)

for fiscal year 2019, $22,600,000,000;

(23)

for fiscal year 2020, $23,700,000,000;

(24)

for fiscal year 2021, $24,800,000,000;

(25)

for fiscal year 2022, $25,900,000,000;

(26)

for fiscal year 2023, for purposes of making two semi-annual allotments—

(A)

$2,850,000,000 for the period beginning on October 1, 2022, and ending on March 31, 2023; and

(B)

$2,850,000,000 for the period beginning on April 1, 2023, and ending on September 30, 2023;

(27)

for each of fiscal years 2024 through 2028, such sums as are necessary to fund allotments to States under subsections (c) and (m); and

(28)

for fiscal year 2029, for purposes of making two semi-annual allotments—

(A)

$7,650,000,000 for the period beginning on October 1, 2028, and ending on March 31, 2029; and

(B)

$7,650,000,000 for the period beginning on April 1, 2029, and ending on September 30, 2029.

(b)

Allotments to 50 States and District of Columbia

(1)

In general

Subject to paragraph (4) and subsections (d) and (m), of the amount available for allotment under subsection (a) for a fiscal year, reduced by the amount of allotments made under subsection (c) (determined without regard to paragraph (4) thereof) for the fiscal year, the Secretary shall allot to each State (other than a State described in such subsection) with a State child health plan approved under this subchapter the same proportion as the ratio of—

(A)

the product of (i) the number of children described in paragraph (2) for the State for the fiscal year and (ii) the State cost factor for that State (established under paragraph (3)); to

(B)

the sum of the products computed under subparagraph (A).

(2)

Number of children

(A)

In general

The number of children described in this paragraph for a State for—

(i)

each of fiscal years 1998 and 1999 is equal to the number of low-income children in the State with no health insurance coverage for the fiscal year;

(ii)

fiscal year 2000 is equal to—

(I)

75 percent of the number of low-income children in the State for the fiscal year with no health insurance coverage, plus

(II)

25 percent of the number of low-income children in the State for the fiscal year; and

(iii)

each succeeding fiscal year is equal to—

(I)

50 percent of the number of low-income children in the State for the fiscal year with no health insurance coverage, plus

(II)

50 percent of the number of low-income children in the State for the fiscal year.

(B)

Determination of number of children

(3)

Adjustment for geographic variations in health costs

(A)

In general

For purposes of paragraph (1)(A)(ii), the “State cost factor” for a State for a fiscal year equal to the sum of—

(i)

0.15, and

(ii)

0.85 multiplied by the ratio of—

(I)

the annual average wages per employee for the State for such year (as determined under subparagraph (B)), to

(II)

the annual average wages per employee for the 50 States and the District of Columbia.

(B)

Annual average wages per employee

(4)

Floors and ceilings in State allotments

(A)

In general

The proportion of the allotment under this subsection for a subsection (b) State (as defined in subparagraph (D)) for fiscal year 2000 and each fiscal year thereafter shall be subject to the following floors and ceilings:

(i)

Floor of $2,000,000

(ii)

Annual floor of 10 percent below preceding fiscal year’s proportion

(iii)

Cumulative floor of 30 percent below the FY 1999 proportion

(iv)

Cumulative ceiling of 45 percent above FY 1999 proportion

(B)

Reconciliation

(i)

Elimination of any deficit by establishing a percentage increase ceiling for States with highest annual percentage increases

(ii)

Allocation of surplus through pro rata increase

(C)

Construction

(D)

Definitions

In this paragraph:

(i)

Proportion of allotment

(ii)

Subsection (b) State

(c)

Allotments to territories

(1)

In general

(2)

Percentage

The percentage specified in this paragraph for—

(A)

Puerto Rico is 91.6 percent,

(B)

Guam is 3.5 percent,

(C)

the Virgin Islands is 2.6 percent,

(D)

American Samoa is 1.2 percent, and

(E)

the Northern Mariana Islands is 1.1 percent.

(3)

Commonwealths and territories

A commonwealth or territory described in this paragraph is any of the following if it has a State child health plan approved under this subchapter:

(A)

Puerto Rico.

(B)

Guam.

(C)

The Virgin Islands.

(D)

American Samoa.

(E)

The Northern Mariana Islands.

(4)

Additional allotment

(A)

In general

(B)

Appropriations

(d)

Additional allotments to eliminate funding shortfalls

(1)

Appropriation; allotment authority

(2)

Shortfall States described

For purposes of paragraph (1), a shortfall State described in this paragraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of December 16, 2005, that the projected expenditures under such plan for such State for fiscal year 2006 will exceed the sum of—

(A)

the amount of the State’s allotments for each of fiscal years 2004 and 2005 that will not be expended by the end of fiscal year 2005;

(B)

the amount, if any, that is to be redistributed to the State during fiscal year 2006 in accordance with subsection (f); and

(C)

the amount of the State’s allotment for fiscal year 2006.

(3)

Allotments

In addition to the allotments provided under subsections (b) and (c), subject to paragraph (4), of the amount available for the additional allotments under paragraph (1) for fiscal year 2006, the Secretary shall allot—

(A)

to each shortfall State described in paragraph (2) such amount as the Secretary determines will eliminate the estimated shortfall described in such paragraph for the State; and

(B)

to each commonwealth or territory described in subsection (c)(3), the same proportion as the proportion of the commonwealth’s or territory’s allotment under subsection (c) (determined without regard to subsection (f)) to 1.05 percent of the amount appropriated under paragraph (1).

(4)

Use of additional allotment

(5)

1-year availability; no redistribution of unexpended additional allotments

(e)

Availability of amounts allotted

(1)

In general

Except as provided in paragraph (2), amounts allotted to a State pursuant to this section—

(A)

for each of fiscal years 1998 through 2008, shall remain available for expenditure by the State through the end of the second succeeding fiscal year; and

(B)

for fiscal year 2009 and each fiscal year thereafter, shall remain available for expenditure by the State through the end of the succeeding fiscal year.

(2)

Availability of amounts redistributed

(f)

Procedure for redistribution of unused allotments

(1)

In general

(2)

Shortfall States described

(A)

In general

For purposes of paragraph (1), with respect to a fiscal year, a shortfall State described in this subparagraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates on the basis of the most recent data available to the Secretary, that the projected expenditures under such plan for the State for the fiscal year will exceed the sum of—

(i)

the amount of the State’s allotments for any preceding fiscal years that remains available for expenditure and that will not be expended by the end of the immediately preceding fiscal year;

(ii)

the amount (if any) of the child enrollment contingency fund 2

 So in original. Probably should be “Child Enrollment Contingency Fund”.

payment under subsection (n); and

(iii)

the amount of the State’s allotment for the fiscal year.

(B)

Determination of redistributed amounts if insufficient amounts available

(i)

Proration rule

(ii)

Special rule for first half of fiscal year 2018

(I)

In general

(II)

Emergency shortfall State defined

(III)

Funds redistributed in the order in which States realize funding shortfalls

(IV)

Proration rule

(V)

Unobligated redistributed funds

(VI)

Application of qualifying State option

During the period described in subclause (I), section 1397ee(g)(4) of this title, as in effect on the day before January 22, 2018, shall apply to a qualifying State (as defined in section 1397ee(g)(2) of this title) as if under section 1397ee(g)(4) of this title, as so in effect—

(aa)

the reference to “2017” were a reference to “2018”; and

(bb)

the reference to “under subsections (e) and (m) of such section” were a reference to “under subsections (e), (f), and (m) of such section”.

(C)

Retrospective adjustment

(D)

Rule of construction

(g)

Rule for redistribution and extended availability of fiscal years 1998, 1999, 2000, and 2001 allotments

(1)

Amount redistributed

(A)

In general

In the case of a State that expends all of its allotment under subsection (b) or (c) for fiscal year 1998 by the end of fiscal year 2000, or for fiscal year 1999 by the end of fiscal year 2001, or for fiscal year 2000 by the end of fiscal year 2002, or for fiscal year 2001 by the end of fiscal year 2003, the Secretary shall redistribute to the State under subsection (f) (from the fiscal year 1998, 1999, 2000, or 2001 allotments of other States, respectively, as determined by the application of paragraphs (2) and (3) with respect to the respective fiscal year) the following amount:

(i)

State

In the case of one of the 50 States or the District of Columbia, with respect to—

(I)

the fiscal year 1998 allotment, the amount by which the State’s expenditures under this subchapter in fiscal years 1998, 1999, and 2000 exceed the State’s allotment for fiscal year 1998 under subsection (b);

(II)

the fiscal year 1999 allotment, the amount by which the State’s expenditures under this subchapter in fiscal years 1999, 2000, and 2001 exceed the State’s allotment for fiscal year 1999 under subsection (b);

(III)

the fiscal year 2000 allotment, the amount specified in subparagraph (C)(i) (less the total of the amounts under clause (ii) for such fiscal year), multiplied by the ratio of the amount specified in subparagraph (C)(ii) for the State to the amount specified in subparagraph (C)(iii); or

(IV)

the fiscal year 2001 allotment, the amount specified in subparagraph (D)(i) (less the total of the amounts under clause (ii) for such fiscal year), multiplied by the ratio of the amount specified in subparagraph (D)(ii) for the State to the amount specified in subparagraph (D)(iii).

(ii)

Territory

(B)

Expenditure rules

An amount redistributed to a State under this paragraph—

(i)

shall not be included in the determination of the State’s allotment for any fiscal year under this section;

(ii)

notwithstanding subsection (e), with respect to fiscal year 1998, 1999, or 2000, shall remain available for expenditure by the State through the end of fiscal year 2004;

(iii)

notwithstanding subsection (e), with respect to fiscal year 2001, shall remain available for expenditure by the State through the end of fiscal year 2005; and

(iv)

shall be counted as being expended with respect to a fiscal year allotment in accordance with applicable regulations of the Secretary.

(C)

Amounts used in computing redistributions for fiscal year 2000

For purposes of subparagraph (A)(i)(III)—

(i)

the amount specified in this clause is the amount specified in paragraph (2)(B)(i)(I) for fiscal year 2000, less the total amount remaining available pursuant to paragraph (2)(A)(iii);

(ii)

the amount specified in this clause for a State is the amount by which the State’s expenditures under this subchapter in fiscal years 2000, 2001, and 2002 exceed the State’s allotment for fiscal year 2000 under subsection (b); and

(iii)

the amount specified in this clause is the sum, for all States entitled to a redistribution under subparagraph (A) from the allotments for fiscal year 2000, of the amounts specified in clause (ii).

(D)

Amounts used in computing redistributions for fiscal year 2001

For purposes of subparagraph (A)(i)(IV)—

(i)

the amount specified in this clause is the amount specified in paragraph (2)(B)(i)(I) for fiscal year 2001, less the total amount remaining available pursuant to paragraph (2)(A)(iv);

(ii)

the amount specified in this clause for a State is the amount by which the State’s expenditures under this subchapter in fiscal years 2001, 2002, and 2003 exceed the State’s allotment for fiscal year 2001 under subsection (b); and

(iii)

the amount specified in this clause is the sum, for all States entitled to a redistribution under subparagraph (A) from the allotments for fiscal year 2001, of the amounts specified in clause (ii).

(2)

Extension of availability of portion of unexpended fiscal years 1998 through 2001 allotments

(A)

In general

Notwithstanding subsection (e):

(i)

Fiscal year 1998 allotment

(ii)

Fiscal year 1999 allotment

(iii)

Fiscal year 2000 allotment

(iv)

Fiscal year 2001 allotment

(B)

Amount remaining available for expenditure

The amount specified in this subparagraph for a State for a fiscal year is equal to—

(i)

the amount by which (I) the total amount available for redistribution under subsection (f) from the allotments for that fiscal year, exceeds (II) the total amounts redistributed under paragraph (1) for that fiscal year; multiplied by

(ii)

the ratio of the amount of such State’s unexpended allotment for that fiscal year to the total amount described in clause (i)(I) for that fiscal year.

(C)

Use of up to 10 percent of retained 1998 allotments for outreach activities

(3)

Determination of amounts

(h)

Special rules to address fiscal year 2007 shortfalls

(1)

Redistribution of unused fiscal year 2004 allotments

(A)

In general

(B)

Shortfall State described

For purposes of this paragraph, a shortfall State described in this subparagraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on a monthly basis using the most recent data available to the Secretary as of such month, that the projected expenditures under such plan for such 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 was not expended by the end of fiscal year 2006; and

(ii)

the amount of the State’s allotment for fiscal year 2007.

(C)

Funds redistributed in the order in which States realize funding shortfalls

(D)

Proration rule

(2)

Funding part of shortfall for fiscal year 2007 through redistribution of certain unused fiscal year 2005 allotments

(A)

In general

(B)

Shortfall State described

For purposes of this paragraph, a shortfall State described in this subparagraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on a monthly basis using the most recent data available to the Secretary as of March 31, 2007, that the projected expenditures under such plan for such 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 was not expended by the end of fiscal year 2006;

(ii)

the amount, if any, that is to be redistributed to the State in accordance with paragraph (1); and

(iii)

the amount of the State’s allotment for fiscal year 2007.

(C)

Funds redistributed in the order in which States realize funding shortfalls

(D)

Proration rule

(3)

Treatment of certain States with fiscal year 2005 allotments unexpended at the end of the first half of fiscal year 2007

(A)

Identification of States

The Secretary, on the basis of the most recent data available to the Secretary as of March 31, 2007—

(i)

shall identify those States that received an allotment for fiscal year 2005 under subsection (b) which have not expended all of such allotment by March 31, 2007; and

(ii)

for each such State shall estimate—

(I)

the portion of such allotment that was not so expended by such date; and

(II)

whether the State is described in subparagraph (B).

(B)

States with funds in excess of 200 percent of need

(C)

Redistribution and limitation on availability of portion of unused allotments for certain States

(i)

In general

(ii)

Applicable amount

For purposes of clause (i), the applicable amount described in this clause is the lesser of—

(I)

50 percent of the amount described in subparagraph (A)(ii)(I); or

(II)

$20,000,000.

(4)

Additional amounts to eliminate remainder of fiscal year 2007 funding shortfalls

(A)

In general

(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 subchapter for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of May 25, 2007, 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).

(5)

Retrospective adjustment

(A)

In general

(B)

Funding of any retrospective adjustments only from unexpended 2005 allotments

(C)

Rules of construction

Nothing in this subsection shall be construed as—

(i)

authorizing the Secretary to use the allotments for fiscal year 2006 or 2007 under subsection (b) of States described in paragraph (3)(B) to provide additional amounts to States described in paragraph (2)(B) for purposes of eliminating the funding shortfall for such States for fiscal year 2007; or

(ii)

limiting the authority of the Secretary to redistribute the allotments for fiscal year 2005 under subsection (b) that remain unexpended through the end of fiscal year 2007 and are available for redistribution under subsection (f) after the application of subparagraph (B).

(6)

1-year availability; no further redistribution

(7)

Definition of State

(i)

Redistribution of unused fiscal year 2005 allotments to States with estimated funding shortfalls for fiscal year 2008

(1)

In general

(2)

Fiscal year 2008 shortfall State described

A fiscal year 2008 shortfall State described in this paragraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on a monthly basis using the most recent data available to the Secretary as of such month, that the projected expenditures under such plan for such State for fiscal year 2008 will exceed the sum of—

(A)

the amount of the State’s allotments for each of fiscal years 2006 and 2007 that was not expended by the end of fiscal year 2007; and

(B)

the amount of the State’s allotment for fiscal year 2008.

(3)

Funds redistributed in the order in which States realize funding shortfalls

(4)

Proration rule

(5)

Retrospective adjustment

(6)

1–year availability; no further redistribution

(j)

Additional allotments to eliminate funding shortfalls for fiscal year 2008

(1)

Appropriation; allotment authority

(2)

Shortfall States described

For purposes of paragraph (3), a shortfall State described in this paragraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of November 30, 2007, that the Federal share amount of the projected expenditures under such plan for such State for fiscal year 2008 will exceed the sum of—

(A)

the amount of the State’s allotments for each of fiscal years 2006 and 2007 that will not be expended by the end of fiscal year 2007;

(B)

the amount, if any, that is to be redistributed to the State during fiscal year 2008 in accordance with subsection (i); and

(C)

the amount of the State’s allotment for fiscal year 2008.

(3)

Allotments

(A)

to each shortfall State described in paragraph (2) not described in subparagraph (B), such amount as the Secretary determines will eliminate the estimated shortfall described in such paragraph for the State; and

(B)

to each commonwealth or territory described in subsection (c)(3), an amount equal to the percentage specified in subsection (c)(2) for the commonwealth or territory multiplied by 1.05 percent of the sum of the amounts determined for each shortfall State under subparagraph (A).

(4)

Proration rule

(5)

Retrospective adjustment

(6)

One-year availability; no redistribution of unexpended additional allotments

(k)

Redistribution of unused fiscal year 2006 allotments to States with estimated funding shortfalls during fiscal year 2009

(1)

In general

(2)

Fiscal year 2009 shortfall State described

A fiscal year 2009 shortfall State described in this paragraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on a monthly basis using the most recent data available to the Secretary as of such month, that the Federal share amount of the projected expenditures under such plan for such State for the first 2 quarters of fiscal year 2009 will exceed the sum of—

(A)

the amount of the State’s allotments for each of fiscal years 2007 and 2008 that was not expended by the end of fiscal year 2008; and

(B)

the amount of the State’s allotment for fiscal year 2009.

(3)

Funds redistributed in the order in which States realize funding shortfalls

(4)

Proration rule

(5)

Retrospective adjustment

(6)

Availability; no further redistribution

(l)

Additional allotments to eliminate funding shortfalls for the first 2 quarters of fiscal year 2009

(1)

Appropriation; allotment authority

(2)

Shortfall States described

For purposes of paragraph (3), a shortfall State described in this paragraph is a State with a State child health plan approved under this subchapter for which the Secretary estimates, on the basis of the most recent data available to the Secretary, that the Federal share amount of the projected expenditures under such plan for such State for the first 2 quarters of fiscal year 2009 will exceed the sum of—

(A)

the amount of the State’s allotments for each of fiscal years 2007 and 2008 that will not be expended by the end of fiscal year 2008;

(B)

the amount, if any, that is to be redistributed to the State during fiscal year 2009 in accordance with subsection (k); and

(C)

the amount of the State’s allotment for fiscal year 2009.

(3)

Allotments

In addition to the allotments provided under subsections (b) and (c), subject to paragraph (4), of the amount available for the additional allotments under paragraph (1) for the first 2 quarters of fiscal year 2009, the Secretary shall allot—

(A)

to each shortfall State described in paragraph (2) not described in subparagraph (B) such amount as the Secretary determines will eliminate the estimated shortfall described in such paragraph for the State; and

(B)

(4)

Proration rule

(5)

Retrospective adjustment

(6)

Availability; no redistribution of unexpended additional allotments

(m)

Allotments for fiscal years 2009 and thereafter

(1)

For fiscal year 2009

(A)

For the 50 States and the District of Columbia

Subject to the succeeding provisions of this paragraph and paragraph (5), the Secretary shall allot for fiscal year 2009 from the amount made available under subsection (a)(12), to each of the 50 States and the District of Columbia 110 percent of the highest of the following amounts for such State or District:

(i)

The total Federal payments to the State under this subchapter for fiscal year 2008, multiplied by the allotment increase factor determined under paragraph (6) for fiscal year 2009.

(ii)

The amount allotted to the State for fiscal year 2008 under subsection (b), multiplied by the allotment increase factor determined under paragraph (6) for fiscal year 2009.

(iii)

The projected total Federal payments to the State under this subchapter for fiscal year 2009, as determined on the basis of the February 2009 projections certified by the State to the Secretary by not later than March 31, 2009.

(B)

For the commonwealths and territories

(C)

Adjustment for qualifying States

(2)

For fiscal years beginning with fiscal year 2010

(A)

In general

Subject to paragraphs (4) and (6),5

 See References in Text note below.

from the amount made available under paragraphs (13) through (15) of subsection (a) for each of fiscal years 2010 through 2012, respectively, the Secretary shall compute a State allotment for each State (including the District of Columbia and each commonwealth and territory) for each such fiscal year as follows:

(i)

Growth factor update for fiscal year 2010

For fiscal year 2010, the allotment of the State is equal to the sum of—

(I)

the amount of the State allotment under paragraph (1) for fiscal year 2009; and

(II)

the amount of any payments made to the State under subsection (k), (l), or (n) for fiscal year 2009,

multiplied by the allotment increase factor under paragraph (6) for fiscal year 2010.

(ii)

Rebasing in fiscal year 2011

(iii)

Growth factor update for fiscal year 2012

For fiscal year 2012, the allotment of the State is equal to the sum of—

(I)

the amount of the State allotment under clause (ii) for fiscal year 2011; and

(II)

the amount of any payments made to the State under subsection (n) for fiscal year 2011,

multiplied by the allotment increase factor under paragraph (6) for fiscal year 2012.

(B)

Fiscal year 2013 and each succeeding fiscal year

Subject to paragraphs (5), (7), and (12), from the amount made available under paragraphs (16) through (27) of subsection (a) for fiscal year 2013 and each succeeding fiscal year, respectively, the Secretary shall compute a State allotment for each State (including the District of Columbia and each commonwealth and territory) for each such fiscal year as follows:

(i)

Rebasing in fiscal year 2013 and each succeeding odd-numbered fiscal year

(ii)

Growth factor update for fiscal year 2014 and each succeeding even-numbered fiscal year

Except as provided in clauses (iii) and (iv), for fiscal year 2014 and each succeeding even-numbered fiscal year, the allotment of the State is equal to the sum of—

(I)

the amount of the State allotment under clause (i) (or, in the case of fiscal year 2018 or 2024, under paragraph (4) or (10), respectively) for the preceding fiscal year; and

(II)

the amount of any payments made to the State under subsection (n) for such preceding fiscal year,

multiplied by the allotment increase factor under paragraph (6) for such even-numbered fiscal year.

(iii)

Special rule for 2016

(iv)

Reduction in 2018

(3)

For fiscal year 2015

(A)

First half

(B)

Second half

Subject to paragraphs (5) and (7), from the amount made available under subparagraph (B) of paragraph (18) of subsection (a) for the semi-annual period described in such paragraph, the Secretary shall compute a State allotment for each State (including the District of Columbia and each commonwealth and territory) for such semi-annual period in an amount equal to the amount made available under such subparagraph, multiplied by the ratio of—

(i)

the amount of the allotment to such State under subparagraph (A); to

(ii)

the total of the amount of all of the allotments made available under such subparagraph.

(C)

Full year amount based on rebased amount

(D)

First half ratio

The first half ratio described in this subparagraph is the ratio of—

(i)

the sum of—

(I)

the amount made available under subsection (a)(18)(A); and

(II)

the amount of the appropriation for such period under section 108 of the Children’s Health Insurance Program Reauthorization Act of 2009; to

(ii)

the sum of the ³ —

(I)

amount described in clause (i); and

(II)

the ³ amount made available under subsection (a)(18)(B).

(4)

For fiscal year 2017

(A)

First half

(B)

Second half

Subject to paragraphs (5) and (7), from the amount made available under subparagraph (B) of paragraph (20) of subsection (a) for the semi-annual period described in such paragraph, the Secretary shall compute a State allotment for each State (including the District of Columbia and each commonwealth and territory) for such semi-annual period in an amount equal to the amount made available under such subparagraph, multiplied by the ratio of—

(i)

the amount of the allotment to such State under subparagraph (A); to

(ii)

the total of the amount of all of the allotments made available under such subparagraph.

(C)

Full year amount based on rebased amount

(D)

First half ratio

The first half ratio described in this subparagraph is the ratio of—

(i)

the sum of—

(I)

the amount made available under subsection (a)(20)(A); and

(II)

the amount of the appropriation for such period under section 301(b)(3) of the Medicare Access and CHIP Reauthorization Act of 2015; to

(ii)

the sum of the ³ —

(I)

amount described in clause (i); and

(II)

the ³ amount made available under subsection (a)(20)(B).

(5)

Proration rule

(6)

Allotment increase factor

The allotment increase factor under this paragraph for a fiscal year is equal to the product of the following:

(A)

Per capita health care growth factor

(B)

Child population growth factor

(7)

Increase in allotment to account for approved program expansions

In the case of one of the 50 States or the District of Columbia that—

(A)

has submitted to the Secretary, and has approved by the Secretary, a State plan amendment or waiver request relating to an expansion of eligibility for children or benefits under this subchapter that becomes effective for a fiscal year (beginning with fiscal year 2010 and ending with fiscal year 2029); and

(B)

has submitted to the Secretary, before the August 31 preceding the beginning of the fiscal year (or, in the case of fiscal year 2018, by not later than the date that is 60 days after January 22, 2018), a request for an expansion allotment adjustment under this paragraph for such fiscal year that specifies—

(i)

the additional expenditures that are attributable to the eligibility or benefit expansion provided under the amendment or waiver described in subparagraph (A), as certified by the State and submitted to the Secretary by not later than August 31 preceding the beginning of the fiscal year; and

(ii)

the extent to which such additional expenditures are projected to exceed the allotment of the State or District for the year,

subject to paragraph (5), the amount of the allotment of the State or District under this subsection for such fiscal year shall be increased by the excess amount described in subparagraph (B)(i). A State or District may only obtain an increase under this paragraph for an allotment for fiscal year 2010, fiscal year 2012, fiscal year 2014, fiscal year 2016, fiscal year 2018, fiscal year 2020, fiscal year 2022, fiscal year 2024, fiscal year 2026, or fiscal year 2028.

(8)

Adjustment of fiscal year 2010 allotments to account for changes in projected spending for certain previously approved expansion programs

(9)

Availability of amounts for semi-annual periods in certain fiscal years

(10)

For fiscal year 2023

(A)

First half

(B)

Second half.—

Subject to paragraphs (5) and (7), from the amount made available under subparagraph (B) of paragraph (26) of subsection (a) for the semi-annual period described in such subparagraph, the Secretary shall compute a State allotment for each State (including the District of Columbia and each commonwealth and territory) for such semi-annual period in an amount equal to the amount made available under such subparagraph, multiplied by the ratio of—

(i)

the amount of the allotment to such State under subparagraph (A); to

(ii)

the total of the amount of all of the allotments made available under such subparagraph.

(C)

Full year amount based on rebased amount.—

(D)

First half ratio.—

The first half ratio described in this subparagraph is the ratio of—

(i)

the sum of—

(I)

the amount made available under subsection (a)(26)(A); and

(II)

the amount of the appropriation for such period under section 3002(b)(2) of the HEALTHY KIDS Act; to

(ii)

the sum of—

(I)

the amount described in clause (i); and

(II)

the amount made available under subsection (a)(26)(B).

(11)

For fiscal year 2029

(A)

First half

(B)

Second half

Subject to paragraphs (5) and (7), from the amount made available under subparagraph (B) of paragraph (28) of subsection (a) for the semi-annual period described in such subparagraph, the Secretary shall compute a State allotment for each State (including the District of Columbia and each commonwealth and territory) for such semi-annual period in an amount equal to the amount made available under such subparagraph, multiplied by the ratio of—

(i)

the amount of the allotment to such State under subparagraph (A); to

(ii)

the total of the amount of all of the allotments made available under such subparagraph.

(C)

Full year amount based on rebased amount

(D)

First half ratio

The first half ratio described in this subparagraph is the ratio of—

(i)

the sum of—

(I)

the amount made available under subsection (a)(28)(A); and

(II)

the amount of the appropriation for such period under section 50101(b)(2) of the Advancing Chronic Care, Extenders, and Social Services Act; to

(ii)

the sum of—

(I)

the amount described in clause (i); and

(II)

the amount made available under subsection (a)(28)(B).

(12)

Adjusting allotments to account for increased Federal payments for coverage and administration of COVID–19 vaccines

If a State, commonwealth, or territory receives payment for a fiscal year (beginning with fiscal year 2021) under subsection (a) of section 1397ee of this title for expenditures that are subject to the enhanced FMAP specified under subsection (c)(12) of such section, the amount of the allotment determined for the State, commonwealth, or territory under this subsection—

(A)

for such fiscal year shall be increased by the projected expenditures for such year by the State, commonwealth, or territory under the State child health plan (or a waiver of such plan) for vaccines described in section 1396d(a)(4)(E) of this title (and the administration of such vaccines); and

(B)

once actual expenditures are available in the subsequent fiscal year, the fiscal year allotment that was adjusted by the amount described in subparagraph (A) shall be adjusted on the basis of the difference between—

(i)

such projected amount of expenditures described in subparagraph (A) for such fiscal year described in such subparagraph by the State, commonwealth, or territory; and

(ii)

the actual amount of expenditures for such fiscal year described in subparagraph (A) by the State, commonwealth, or territory under the State child health plan (or waiver of such plan) for vaccines described in section 1396d(a)(4)(E) of this title (and the administration of such vaccines).

(n)

Child Enrollment Contingency Fund

(1)

Establishment

(2)

Deposits into Fund

(A)

Initial and subsequent appropriations

Subject to subparagraphs (B) and (D), out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated to the Fund—

(i)

for fiscal year 2009, an amount equal to 20 percent of the amount made available under paragraph (12) of subsection (a) for the fiscal year; and

(ii)

for each of fiscal years 2010 through 2014, 2016, 2018 through 2022, and 2024 through 2028 (and for each of the semi-annual allotment periods for fiscal years 2015, 2017, 2023, and 2029), such sums as are necessary for making payments to eligible States for such fiscal year or period, but not in excess of the aggregate cap described in subparagraph (B).

(B)

Aggregate cap

(C)

Investment of Fund

(D)

Availability of excess funds for performance bonuses

(3)

Child Enrollment Contingency Fund payments

(A)

In general

If a State’s expenditures under this subchapter in any of fiscal years 2009 through 2014, fiscal year 2016, fiscal years 2018 through 2022, or fiscal years 2024 through 2028 (or a semi-annual allotment period for fiscal year 2015, 2017, 2023, or 2027), exceed the total amount of allotments available under this section to the State in the fiscal year or period (determined without regard to any redistribution it receives under subsection (f) that is available for expenditure during such fiscal year or period, but including any carryover from a previous fiscal year) and if the average monthly unduplicated number of children enrolled under the State plan under this subchapter (including children receiving health care coverage through funds under this subchapter pursuant to a waiver under section 1315 of this title) during such fiscal year or period exceeds its target average number of such enrollees (as determined under subparagraph (B)) for that fiscal year or period, subject to subparagraph (D), the Secretary shall pay to the State from the Fund an amount equal to the product of—

(i)

the amount by which such average monthly caseload exceeds such target number of enrollees; and

(ii)

the projected per capita expenditures under the State child health plan (as determined under subparagraph (C) for the fiscal year), multiplied by the enhanced FMAP (as defined in section 1397ee(b) of this title) for the State and fiscal year involved (or in which the period occurs).

(B)

Target average number of child enrollees

In this paragraph, the target average number of child enrollees for a State—

(i)

for fiscal year 2009 is equal to the monthly average unduplicated number of children enrolled in the State child health plan under this subchapter (including such children receiving health care coverage through funds under this subchapter pursuant to a waiver under section 1315 of this title) during fiscal year 2008 increased by the population growth for children in that State for the year ending on June 30, 2007 (as estimated by the Bureau of the Census) plus 1 percentage point; or

(ii)

for a subsequent fiscal year (or semi-annual period occurring in a fiscal year) is equal to the target average number of child enrollees for the State for the previous fiscal year increased by the child population growth factor described in subsection (m)(6)(B) for the State for the prior fiscal year.

(C)

Projected per capita expenditures

For purposes of subparagraph (A)(ii), the projected per capita expenditures under a State child health plan—

(i)

for fiscal year 2009 is equal to the average per capita expenditures (including both State and Federal financial participation) under such plan for the targeted low-income children counted in the average monthly caseload for purposes of this paragraph during fiscal year 2008, increased by the annual percentage increase in the projected per capita amount of National Health Expenditures (as estimated by the Secretary) for 2009; or

(ii)

for a subsequent fiscal year (or semi-annual period occurring in a fiscal year) is equal to the projected per capita expenditures under such plan for the previous fiscal year (as determined under clause (i) or this clause) increased by the annual percentage increase in the projected per capita amount of National Health Expenditures (as estimated by the Secretary) for the year in which such subsequent fiscal year ends.

(D)

Proration rule

(E)

Timely payment; reconciliation

(F)

Continued reporting

(G)

Application to commonwealths and territories

(Aug. 14, 1935, ch. 531, title XXI, § 2104, as added Pub. L. 105–33, title IV, § 4901(a), Aug. 5, 1997, 111 Stat. 558; amended Pub. L. 105–100, title I, § 162(6), (8), Nov. 19, 1997, 111 Stat. 2189, 2190; Pub. L. 105–277, div. A, § 101(f) [title VII, § 706], Oct. 21, 1998, 112 Stat. 2681–337, 2681–389; Pub. L. 106–113, div. B, § 1000(a)(6) [title VII, §§ 701(a), 702, 705(a)], Nov. 29, 1999, 113 Stat. 1536, 1501A–399, 1501A–400, 1501A–402; Pub. L. 106–554, § 1(a)(6) [title VIII, §§ 801(a), 802(b), (d)(3)], Dec. 21, 2000, 114 Stat. 2763, 2763A–578, 2763A–581; Pub. L. 108–74, § 1(a)(1)–(3), Aug. 15, 2003, 117 Stat. 892, 893; Pub. L. 108–173, title IX, § 900(e)(1)(M), Dec. 8, 2003, 117 Stat. 2372; Pub. L. 109–171, title VI, § 6101(a), (b), Feb. 8, 2006, 120 Stat. 130, 131; Pub. L. 109–482, title II, § 201(a), Jan. 15, 2007, 120 Stat. 3698; Pub. L. 110–28, title VII, § 7001, May 25, 2007, 121 Stat. 186; Pub. L. 110–92, § 136(c), Sept. 29, 2007, 121 Stat. 994; Pub. L. 110–173, title II, § 201(a)(1), (c)(1), Dec. 29, 2007, 121 Stat. 2509, 2510; Pub. L. 111–3, title I, §§ 101–103, 105, 106(a)(1), (b), Feb. 4, 2009, 123 Stat. 11, 15, 23, 24; Pub. L. 111–148, title II, § 2102(a)(1), title X, § 10203(d)(1)–(2)(B), Mar. 23, 2010, 124 Stat. 288, 928–930; Pub. L. 114–10, title III, § 301(a)–(b)(2)(C), (d)(1), Apr. 16, 2015, 129 Stat. 154–158; Pub. L. 115–90, div. B, § 201, Dec. 8, 2017, 131 Stat. 1280; Pub. L. 115–96, div. C, title II, § 3201(a)–(b)(2), (c)(1), Dec. 22, 2017, 131 Stat. 2050, 2051; Pub. L. 115–120, div. C, § 3002(a)(1), (b)(1), (c), (d)(2), Jan. 22, 2018, 132 Stat. 31–34; Pub. L. 115–123, div. E, title I, § 50101(a), (b)(1), (c), Feb. 9, 2018, 132 Stat. 172, 174; Pub. L. 117–2, title IX, § 9821(c), Mar. 11, 2021, 135 Stat. 220; Pub. L. 117–328, div. FF, title V, § 5111(a), (b)(1), (c)(5), Dec. 29, 2022, 136 Stat. 5938, 5939.)

cite as: 42 USC 1397dd

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