‘‘(vii) FISCAL
YEAR
2004
ALLOT-
MENT.—Of the amounts allotted to a State 
pursuant to this section for fiscal year 
2004 that were not expended by the State 
by the end of fiscal year 2006, 50 percent 
of that amount shall remain available for 
expenditure by the State through the end 
of fiscal year 2007.’’; 
(4) in paragraph (3)— 
(A) by striking ‘‘or fiscal year 2001’’ and 
inserting ‘‘fiscal year 2001, fiscal year 2002, 
fiscal year 2003, or fiscal year 2004,’’; and 
(B) by striking ‘‘or November 30, 2003,’’ 
and inserting ‘‘November 30, 2003, November 
30, 2004, November 30, 2005, or November 30, 
2006,’’; and 
(5) by adding at the end the following: 
‘‘(4) ADDITIONAL EXTENDED AVAILABILITY OF 
FISCAL YEARS 1998 THROUGH 2002 ALLOTMENTS.— 
‘‘(A) FISCAL YEAR 1998, 1999, AND 2000 AL-
LOTMENTS.—With respect to any amounts al-
lotted to a State pursuant to this section for 
fiscal years 1998, 1999, or 2000 that were re-
distributed to a State under paragraph (1), or 
whose availability to a State was extended
through the end of fiscal year 2004 under para-
graph (2), that were not expended by the State 
by the end of fiscal year 2004, the following 
rules shall apply: 
‘‘(i) 30 percent of such amounts shall 
remain available for expenditure by the 
State through the end of fiscal year 2007. 
‘‘(ii) The remainder of such amounts 
shall be redistributed to States that have 
fully expended the amount of their fiscal 
year 2002 allotments under this section in 
the same ratio as unexpended fiscal year 
2002 allotments are redistributed under 
paragraph (1)(A)(i)(V) to such States and 
the amounts redistributed under this 
clause shall remain available for expendi-
ture through the end of fiscal year 2007. 
‘‘(B) FISCAL
YEAR
2001
ALLOTMENTS.— 
With respect to any amounts allotted to a State 
pursuant to this section for fiscal year 2001 
that were redistributed to a State under para-
graph (1), or whose availability to a State was 
extended through the end of fiscal year 2005 
under paragraph (2), that were not expended by
the State by the end of fiscal year 2005, the 
following rules shall apply: 
‘‘(i) 30 percent of such amounts shall 
remain available for expenditure by the 
State through the end of fiscal year 2007. 
‘‘(ii) The remainder of such amounts 
shall be redistributed to States that have 
fully expended the amount of their fiscal 
year 2003 allotments in the same ratio as 
unexpended fiscal year 2003 allotments are 
redistributed 
under 
paragraph 
(1)(A)(i)(VI) to such States and the 
amounts redistributed under this clause 
shall remain available for expenditure 
through the end of fiscal year 2007. 
‘‘(C) FISCAL
YEAR
2002
ALLOTMENTS.— 
With respect to any amounts allotted to a State 
pursuant to this section for fiscal year 2002 
that were redistributed to a State under para-
graph (1), or whose availability to a State was 
extended through the end of fiscal year 2006 
under paragraph (2), that were not expended by 
the State by the end of such fiscal year, the fol-
lowing rules shall apply:
‘‘(i) 30 percent of those amounts shall 
remain available for expenditure by the 
State through the end of fiscal year 2007. 
‘‘(ii) The remainder of such amounts 
shall be redistributed to States that have 
fully expended the amount of their fiscal 
year 2004 allotments in the same ratio as 
unexpended fiscal year 2004 allotments are 
redistributed 
under 
paragraph 
(1)(A)(i)(VII) to such States and the 
amounts redistributed under this clause 
shall remain available for expenditure 
through the end of fiscal year 2007.’’. 
SEC. 3. CONTINUED AUTHORITY FOR QUALIFYING STATES 
TO USE CERTAIN FUNDS FOR MEDICAID EX-
PENDITURES. 
Section 2105(g)(1)(A) of the Social Security Act (42 
U.S.C. 1397ee(g)(1)(A)), as added by Public Law 108– 
74 (117 Stat. 895) and amended by Public Law 108–127 
(117 Stat. 134), is amended by striking ‘‘or 2001’’ and 
inserting ‘‘2001, 2002, 2003 or 2004’’. 
Æ