S. 2183Senate115th Congress (2017-2019)In Committee

CHIP Stability Act

Introduced December 1, 2017

AI-Generated Summary

Updated April 15, 2026 at 7:19 PM UTC

The CHIP Stability Act changes the way the federal government reallocates Children's Health Insurance Program (CHIP) funds when some states face a shortfall. It creates a special rule for the first quarter of fiscal year 2018 that gives priority to "emergency shortfall" states before any other shortfall states receive redistributed money. The rule also sets a proportional reduction (proration) if the total funds available are less than the total estimated shortfalls, and it clarifies that U.S. territories can be treated as shortfall states.

Key Provisions

  • Adds a special rule for October‑December 2017 that requires the Secretary to first give each emergency shortfall state an amount equal to its estimated shortfall before any other state receives redistributed CHIP funds.
  • If the total pool of funds for redistribution is insufficient, the amounts for each shortfall state are reduced proportionally (proration).
  • Defines "emergency shortfall state" as a state whose projected CHIP expenditures for the period exceed the sum of its regular allotments and any prior redistributions.
  • Allows a qualifying state to apply the 2018 reference in the calculation rules that normally use 2017, and expands the applicable subsections for those calculations.
  • Specifies that commonwealths or territories can be treated as shortfall or emergency shortfall states under this rule.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

December 1, 2017

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SenateIntro Referral

Introduced in Senate

December 1, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

December 1, 2017

Bill Text

Latest available legislative text

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Introduced in SenateIssued December 1, 2017

II

115th CONGRESS

1st Session

S. 2183

IN THE SENATE OF THE UNITED STATES

December 1, 2017

Mr. Heller introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XXI of the Social Security Act to provide for a special rule during the first quarter of fiscal year 2018 for the redistribution of certain Children’s Health Insurance Program allocations for certain shortfall States.

1.

Short title

This Act may be cited as the CHIP Stability Act.

2.

CHIP allocation redistribution special rule for certain shortfall States during first quarter of fiscal year 2018

Section 2104(f)(2) of the Social Security Act (42 U.S.C. 1397dd(f)(2)) is amended—

(1)

by amending subparagraph (B) to read as follows:

(B)

Determination of redistributed amounts if insufficient amounts available

(i)

Proration rule

Subject to clause (ii), if the amounts available for redistribution under paragraph (1) for a fiscal year are less than the total amounts of the estimated shortfalls determined for the year under subparagraph (A), the amount to be redistributed under such paragraph for each shortfall State shall be reduced proportionally.

(ii)

Special rule for first quarter of fiscal year 2018

(I)

In general

For the period beginning on October 1, 2017, and ending December 31, 2017, with respect to any amounts available for redistribution under paragraph (1) for fiscal year 2018, the Secretary shall redistribute under such paragraph such amounts to each emergency shortfall State (as defined in subclause (II)) in such amount as is equal to the amount of the shortfall described in subclause (II) for such State and period (as may be adjusted under subparagraph (C)) before the Secretary may redistribute such amounts to any shortfall State that is not an emergency shortfall State. In the case of any amounts redistributed under this subclause to a State that is not an emergency shortfall State, such amounts shall be determined in accordance with clause (i).

(II)

Emergency shortfall State defined

For purposes of this clause, the term emergency shortfall State means, with respect to the period beginning October 1, 2017, and ending December 31, 2017, a shortfall State for which the Secretary estimates, in accordance with subparagraph (A) (unless otherwise specified in this subclause), that the projected expenditures under the State child health plan and under section 2105(g) (calculated as if the reference under section 2105(g)(4)(A) to 2017 were a reference to 2018 and insofar as the allotments are available to the State under this subsection or subsection (e) or (m)) for such period will exceed the sum of the amounts described in clauses (i) through (iii) of subparagraph (A) for such period, including after application of any amount redistributed under paragraph (1) before such date of enactment to such State. A shortfall State may be an emergency shortfall State under the previous sentence without regard to whether any amounts were redistributed before such date of enactment to such State under paragraph (1) for fiscal year 2018.

(III)

Application of qualifying State option

During the period described in subclause (I), section 2105(g)(4) shall apply to a qualifying State (as defined in section 2105(g)(2)) as if under section 2105(g)(4)—

(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.

; and

(2)

by adding at the end the following new subparagraph:

(D)

Rule of construction

Nothing in this paragraph may be construed as preventing a commonwealth or territory described in subsection (c)(3) from being treated as a shortfall State or an emergency shortfall State.

.