SECTION 1. TEMPORARY INCREASE OF MEDICAID FMAP.

    (a) Permitting Maintenance of Fiscal Year 2001 FMAP For Last 2 
Calendar Quarters of Fiscal Year 2002.--Notwithstanding any other 
provision of law, but subject to subsection (e), if the FMAP determined 
without regard to this section for a State for fiscal year 2002 is less 
than the FMAP as so determined for fiscal year 2001, the FMAP for the 
State for fiscal year 2001 shall be substituted for the State's FMAP 
for the third and fourth calendar quarters of fiscal year 2002, before 
the application of this section.
    (b) Permitting Maintenance of Fiscal Year 2002 FMAP For Fiscal Year 
2003.--Notwithstanding any other provision of law, but subject to 
subsection (e), if the FMAP determined without regard to this section 
for a State for fiscal year 2003 is less than the FMAP as so determined 
for fiscal year 2002, the FMAP for the State for fiscal year 2002 shall 
be substituted for the State's FMAP for each calendar quarter of fiscal 
year 2003, before the application of this section.
    (c) General 1 Percentage Point Increase for Last 2 Calendar 
Quarters of Fiscal Year 2002 and Fiscal Year 2003.--Notwithstanding any 
other provision of law, but subject to subsections (e) and (f), for 
each State for the third and fourth calendar quarters of fiscal year 
2002 and each calendar quarter of fiscal year 2003, the FMAP (taking 
into account the application of subsections (a) and (b)) shall be 
increased by 1 percentage point.
    (d) Increase in Cap on Medicaid Payments To Territories.--
Notwithstanding any other provision of law, but subject to subsection 
(f), with respect to the third and fourth calendar quarters of fiscal 
year 2002 and each calendar quarter of fiscal year 2003, the amounts 
otherwise determined for Puerto Rico, the Virgin Islands, Guam, the 
Northern Mariana Islands, and American Samoa under subsections (f) and 
(g) of section 1108 of the Social Security Act (42 U.S.C. 1308) shall 
each be increased by an amount equal to 2 percent of such amounts.
    (e) Scope of Application.--The increases in the FMAP for a State 
under this section shall apply only for purposes of title XIX of the 
Social Security Act and shall not apply with respect to--
            (1) disproportionate share hospital payments described in 
        section 1923 of such Act (42 U.S.C. 1396r-4); or
            (2) payments under titles IV and XXI of such Act (42 U.S.C. 
        601 et seq. and 1397aa et seq.).
    (f) State Eligibility.--
            (1) In general.--A State is eligible for an increase in its 
        FMAP under subsection (c) or an increase in a cap amount under 
        subsection (d) only if the eligibility under its State plan 
        under title XIX of the Social Security Act (including any 
        waiver under such title or under section 1115 of such Act (42 
        U.S.C. 1315)) is no more restrictive than the eligibility under 
        such plan (or waiver) as in effect on January 1, 2002.
            (2) Rule of construction.--Nothing in paragraph (1) shall 
        be construed as affecting a State's flexibility with respect to 
        benefits offered under the State medicaid program under title 
        XIX of the Social Security Act (42 U.S.C. 1396 et seq.) 
        (including any waiver under such title or under section 1115 of 
        such Act (42 U.S.C. 1315)).
    (g) Definitions.--In this section:
            (1) FMAP.--The term ``FMAP'' means the Federal medical 
        assistance percentage, as defined in section 1905(b) of the 
        Social Security Act (42 U.S.C. 1396d(b)).
            (2) State.--The term ``State'' has the meaning given such 
        term for purposes of title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.).
    (h) Repeal.--Effective as of October 1, 2003, this section is 
repealed.

SEC. 2. ADDITIONAL TEMPORARY STATE FISCAL RELIEF.

    (a) In General.--Title XX of the Social Security Act (42 U.S.C. 
1397-1397f) is amended by adding at the end the following:

``SEC. 2008. ADDITIONAL TEMPORARY GRANTS FOR STATE FISCAL RELIEF.

    ``(a) In General.--For the purpose of providing State fiscal relief 
allotments to States under this section, there are hereby appropriated, 
out of any funds in the Treasury not otherwise appropriated, 
$4,430,280,000. Such funds shall be available for obligation by the 
State through June 30, 2004, and for expenditure by the State through 
September 30, 2004. This section constitutes budget authority in 
advance of appropriations Acts and represents the obligation of the 
Federal Government to provide for the payment to States of amounts 
provided under this section.
    ``(b) Allotment.--Funds appropriated under subsection (a) shall be 
allotted by the Secretary among the States in accordance with the 
following table:

      

------------------------------------------------------------------------
               ``State                       Allotment (in dollars)
------------------------------------------------------------------------
 Alabama                                $48,732,000
 Alaska                                 $12,715,000
 Amer. Samoa                            $126,000
 Arizona                                $67,139,000
 Arkansas                               $36,666,000
 California                             $459,264,000
 Colorado                               $40,650,000
 Connecticut                            $61,497,000
 Delaware                               $11,920,000
 District of Columbia                   $17,700,000
 Florida                                $185,836,000
 Georgia                                $98,525,000
 Guam                                   $193,000
 Hawaii                                 $13,378,000
 Idaho                                  $15,587,000
 Illinois                               $156,504,000
 Indiana                                $76,215,000
 Iowa                                   $38,784,000
 Kansas                                 $31,843,000
 Kentucky                               $65,707,000
 Louisiana                              $75,795,000
 Maine                                  $27,392,000
 Maryland                               $65,445,000
 Massachusetts                          $155,344,000
 Michigan                               $133,966,000
 Minnesota                              $83,144,000
 Mississippi                            $48,596,000
 Missouri                               $102,266,000
 Montana                                $11,590,000
 Nebraska                               $24,095,000
 Nevada                                 $14,595,000
 New Hampshire                          $15,423,000
 New Jersey                             $126,921,000
 New Mexico                             $32,476,000
 New York                               $693,453,000
 North Carolina                         $127,427,000
 North Dakota                           $8,382,000
 N. Mariana Islands                     $71,000
 Ohio                                   $171,776,000
 Oklahoma                               $45,262,000
 Oregon                                 $49,868,000
 Pennsylvania                           $231,978,000
 Puerto Rico                            $11,702,000
 Rhode Island                           $24,185,000
 South Carolina                         $57,178,000
 South Dakota                           $9,177,000
 Tennessee                              $119,003,000
 Texas                                  $232,167,000
 Utah                                   $18,074,000
 Vermont                                $11,545,000
 Virgin Islands                         $189,000
 Virginia                               $63,699,000
 Washington                             $96,068,000
 West Virginia                          $29,260,000
 Wisconsin                              $68,664,000
 Wyoming                                $5,123,000
------------------------------------------------------------------------
 Total                                  $4,430,280,000
------------------------------------------------------------------------

    ``(c) Use of Funds.--Funds appropriated under this section may be 
used by a State for services directed at the goals set forth in section 
2001, subject to the requirements of this title.
    ``(d) Payment to States.--Not later than 30 days after amounts are 
appropriated under subsection (a), in addition to any payment made 
under section 2002 or 2007, the Secretary shall make a lump sum payment 
to a State of the total amount of the allotment for the State as 
specified in subsection (b).
    ``(e) Definition.--For purposes of this section, the term `State' 
means the 50 States, the District of Columbia, and the territories 
contained in the list under subsection (b).''.
    (b) Repeal.--Effective as of January 1, 2005, section 2008 of the 
Social Security Act, as added by subsection (a), is repealed.
Declares that, if the Federal medical assistance percentage (FMAP) under title XIX (Medicaid) of the Social Security Act (SSA) for a State for FY 2002 is less than the FMAP for FY 2001, the FY 2001 FMAP shall be substituted for the State's FMAP for the third and fourth calendar quarters of FY 2002. Declares similarly that if a State's FY 2003 FMAP is less than the FY 2002 FMAP, the FY 2002 FMAP shall be substituted for each calendar quarter of FY 2003.Requires each eligible State for the third and fourth calendar quarters of FY 2002 and each calendar quarter of FY 2003 to have its FMAP increased by 1.0 percentage point. Mandates a specified Medicaid payment cap increase for territories. Prohibits application of the FMAP increases for a State under this Act with respect to: (1) disproportionate share hospital payments under Medicaid; and (2) payments under SSA titles IV and XXI (State Children's Health Insurance) (SCHIP).Amends SSA title XX (Block Grants to States for Social Services), for the purpose of providing State fiscal relief allotments to States and territories in accordance with a specified table, to make appropriations to be available for obligation by the State through June 30, 2004, and for expenditure by the State through September 30, 2004.
A bill to temporarily increase the Federal medical assistance percentage for the medicaid program, and for other purposes.