S. 3596Senate117th Congress (2021-2023)In Committee

CHIP School Behavioral Health Incentive Act

Sponsored by John ThuneSen. John Thune (R-SD)
Introduced February 8, 2022

AI-Generated Summary

Updated February 8, 2026 at 9:17 AM UTC

The CHIP School Behavioral Health Incentive Act changes the Social Security Act so that money states spend on programs that bring behavioral health services into schools does not count toward the spending cap for the Children’s Health Insurance Program (CHIP). This lets states fund school‑based mental health initiatives without reducing the amount of CHIP funds they can receive. The change is aimed at improving access to behavioral health care for children in schools and affects state CHIP funding calculations and the children who receive CHIP benefits.

Key Provisions

  • Adds a new subparagraph (D) to Section 2105(c)(2) stating that state expenditures for health services initiatives that increase access to behavioral health services in schools are ignored for the CHIP reimbursement limitation.
  • Specifies that these excluded expenditures cannot cause CHIP payments for a fiscal year to exceed 15% of the total CHIP payment for that year.
  • The rule takes effect the first fiscal year after enactment or when the Secretary issues implementing guidance.

Legislative Activity

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2 earlier actions
SenateCommittee Latest Action

Committee on Banking, Housing, and Urban Affairs. Hearings held.

March 22, 2022

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SenateIntro Referral

Introduced in Senate

February 8, 2022

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S576)

February 8, 2022

SenateCommittee

Committee on Banking, Housing, and Urban Affairs. Hearings held.

March 22, 2022

Floor Debate

1 member

What members said about S. 3596 on the floor

1 Republican
John Thune
Sen. John ThuneR-SD · Feb 8, 2022

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

John Thune
Sen. John ThuneR-SD · Feb 8, 2022

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued February 8, 2022

II

117th CONGRESS

2d Session

S. 3596

IN THE SENATE OF THE UNITED STATES

February 8 (legislative day, February 3), 2022

Mr. Thune (for himself and Mr. Menendez) 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 disregard State expenditures on health services initiatives to increase access to behavioral health services for children in schools for purposes of the reimbursement limitation on expenditures under the Children's Health Insurance Program that are not related to Medicaid or health insurance assistance.

1.

Short title

This Act may be cited as the CHIP School Behavioral Health Incentive Act.

2.

Disregard of State expenditures on health services initiatives to increase access to behavioral health services for children in schools for purposes of the CHIP reimbursement limitation on expenditures not used for medicaid or health insurance assistance

Section 2105(c)(2) of the Social Security Act (42 U.S.C. 1397ee(c)(2)) is amended by adding at the end the following new subparagraph:

(D)

Disregard of expenditures for health services initiative for behavioral health services in schools

(i)

In general

Beginning with the first fiscal year that begins after the date of enactment of this subparagraph (or, if earlier, the fiscal year in which guidance issued by the Secretary to implement this subparagraph takes effect), the amount of any expenditures described in clause (ii) for a fiscal year shall be disregarded for purposes of applying the limitation under subparagraph (A) for such fiscal year, except that in no case shall the amount of payment that may be made under subsection (a) for a fiscal year for expenditures subject to such limitation (including expenditures described in clause (ii)) exceed 15 percent.

(ii)

Expenditures described

Expenditures described in this clause are expenditures by a State to implement or operate a health services initiative under the State child health plan under this title that would improve the health of children by increasing access to behavioral health services in schools.

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