A bill to amend title XXI of the Social Security Act to extend funding for 18 months for the State Children's Health Insurance Program (SCHIP) and for other purposes.

Summary: SCHIP Extension Act of 2007 - Amends title XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act (SSA) to: (1) extend SCHIP through FY2008 and the first six months of FY2009; (2) provide additional allotments to states to address SCHIP funding shortfalls for the same period of time; and (3) authorize qualifying states to elect to receive the enhanced portion of the SCHIP matching rate for coverage of certain children under SSA title XIX (Medicaid).

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``SCHIP Extension Act of 2007''.

SEC. 2. EXTENSION OF SCHIP.

    Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (9);
                    (B) by striking the period at the end of paragraph 
                (10) and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(11) for fiscal year 2008, $5,000,000,000; and
            ``(12) for the first 6 months of fiscal year 2009, 
        $2,500,000,000.''; and
            (2) in subsection (c)(4)(B), by striking ``and $40,000,000 
        for fiscal year 2007'' and inserting ``$40,000,000 for each of 
        fiscal years 2007 and 2008, and $20,000,000 for the first 6 
        months of fiscal year 2009''.

SEC. 3. ADDITIONAL ALLOTMENTS TO ADDRESS SCHIP FUNDING SHORTFALLS FOR 
              FISCAL YEAR 2008 AND FIRST 6 MONTHS OF FISCAL YEAR 2009.

    Section 2104 of the Social Security Act (42 U.S.C. 1397dd) is 
amended by adding at the end the following new subsection:
    ``(i) Amounts To Eliminate Funding Shortfalls for Fiscal Year 2008 
and First 6 Months of Fiscal Year 2009.--
            ``(1) In general.--From the amounts appropriated under 
        paragraph (4) for a shortfall period (as defined in paragraph 
        (5)), the Secretary shall allot to each shortfall State 
        described in paragraph (2) for such period such amount as the 
        Secretary determines will eliminate the estimated shortfall 
        described in paragraph (2) for the State for the shortfall 
        period.
            ``(2) Shortfall state described.--For purposes of paragraph 
        (1), a shortfall State described in this paragraph for a 
        shortfall period 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 a date (specified by the Secretary) during the shortfall 
        period, that the projected Federal expenditures under such plan 
        for the State for the shortfall period will exceed the sum of--
                    ``(A) the amount of the State's allotments for the 
                two fiscal years ending before the shortfall period 
                that will not be expended by the end of the more recent 
                such fiscal year;
                    ``(B) the amount of the State's allotment for the 
                shortfall period; and
                    ``(C) the amounts, if any, that are to be 
                redistributed to the State during the shortfall period 
                in accordance with subsection (f).
            ``(3) Proration rule.--If the amount available under 
        paragraph (4) for a shortfall period is less than the total 
        amount of the estimated shortfalls determined by the Secretary 
        under paragraph (1) for such period, the amount of the 
        estimated shortfall for each shortfall State determined under 
        such paragraph for such period shall be reduced proportionally.
            ``(4) Appropriation; allotment authority.--For the purpose 
        of providing additional allotments to shortfall States under 
        this subsection--
                    ``(A) Fiscal year 2008.--For the shortfall period 
                specified in paragraph (5)(A), there is appropriated, 
                out of any funds in the Treasury not otherwise 
                appropriated, such sums as are necessary for such 
                fiscal year, but not to exceed $1,500,000,000.
                    ``(B) First 6 months of fiscal year 2009.--For the 
                shortfall period specified in paragraph (5)(B), there 
                is appropriated, out of any funds in the Treasury not 
                otherwise appropriated, such sums as are necessary for 
                such period, but not to exceed $1,100,000,000.
            ``(5) Shortfall periods specified.--For purposes of this 
        subsection, each of the following is a `shortfall period':
                    ``(A) Fiscal year 2008.
                    ``(B) The first 6 months of fiscal year 2009.''.

SEC. 4. OPTION FOR QUALIFYING STATES TO RECEIVE THE ENHANCED PORTION OF 
              THE SCHIP MATCHING RATE FOR MEDICAID COVERAGE OF CERTAIN 
              CHILDREN.

    Section 2105(g) of the Social Security Act (42 U.S.C. 1397ee(g)) is 
amended--
            (1) in paragraph (1)(A), by inserting ``subject to 
        paragraph (4),'' after ``Notwithstanding any other provision of 
        law,''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Option for allotments.--
                    ``(A) Payment of enhanced portion of matching rate 
                for certain expenditures.--In the case of expenditures 
                described in subparagraph (B), a qualifying State (as 
                defined in paragraph (2)) may elect to be paid from the 
                State's allotment made under section 2104 for any 
                fiscal year (beginning with fiscal year 2008) (insofar 
                as the allotment is available to the State under 
                subsections (e) and (i) of such section) an amount each 
                quarter equal to the additional amount that would have 
                been paid to the State under title XIX with respect to 
                such expenditures if the enhanced FMAP (as determined 
                under subsection (b)) had been substituted for the 
                Federal medical assistance percentage (as defined in 
                section 1905(b)).
                    ``(B) Expenditures described.--For purposes of 
                subparagraph (A), the expenditures described in this 
                subparagraph are expenditures made after the date of 
                the enactment of this paragraph and during the period 
                in which funds are available to the qualifying State 
                for use under subparagraph (A), for the provision of 
                medical assistance to individuals residing in the State 
                who are eligible for medical assistance under the State 
                plan under title XIX or under a waiver of such plan and 
                who have not attained age 19, and whose family income 
                equals or exceeds 133 percent of the poverty line but 
                does not exceed the Medicaid applicable income 
                level.''.