EXPENDITURES.—Section 2105(g) of the Social Security 
Act (42 U.S.C. 1397ee(g)) is amended— 
(1) in the subsection heading, by inserting 
‘‘AND CERTAIN PREGNANCY COVERAGE EXPANSION 
STATES’’ after ‘‘QUALIFYING STATES’’; 
(2) by adding at the end the following: 
‘‘(4) SPECIAL AUTHORITY FOR CERTAIN PREG-
NANCY COVERAGE EXPANSION STATES.— 
‘‘(A) IN GENERAL.—In the case of a State 
that, as of the date of enactment of the Prevent 
Prematurity and Improve Child Health Act of 
2007, has an income eligibility standard under 
title 
XIX 
or 
this 
title 
(under 
section 
1902(a)(10)(A) or under a statewide waiver in 
effect under section 1115 with respect to title 
XIX or this title) that is at least 185 percent 
of the poverty line with respect to pregnant 
women, the State may elect to use not more 
than 20 percent of any allotment under section 
2104 for any fiscal year (insofar as it is avail-
able under any subsection of such section) for 
payments under title XIX in accordance with 
subparagraph (B), instead of for expenditures 
under this title. 
‘‘(B) PAYMENTS TO STATES.— 
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‘‘(i) IN GENERAL.—In the case of a 
State described in subparagraph (A) that 
has elected the option described in that 
subparagraph, subject to the availability of 
funds under such subparagraph and, if ap-
plicable, paragraph (1)(A), with respect to 
the State, the Secretary shall pay the State 
an amount each quarter equal to the addi-
tional amount that would have been paid 
to the State under title XIX with respect 
to expenditures described in clause (ii) if 
the enhanced FMAP (as determined under 
subsection (b)) had been substituted for 
the Federal medical assistance percentage 
(as defined in section 1905(b)). 
‘‘(ii) EXPENDITURES
DESCRIBED.— 
For purposes of this subparagraph, the ex-
penditures described in this clause are ex-
penditures, made after the date of the en-
actment of this paragraph and during the 
period in which funds are available to the 
State for use under subparagraph (A), for 
medical assistance under title XIX for 
pregnant women whose family income is at 
least 185 percent of the poverty line. 
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‘‘(iii) NO IMPACT ON DETERMINATION 
OF BUDGET NEUTRALITY FOR WAIVERS.— 
In the case of a State described in sub-
paragraph (A) that uses amounts paid 
under this paragraph for expenditures de-
scribed in clause (ii) that are incurred 
under a waiver approved for the State, any 
budget neutrality determinations with re-
spect to such waiver shall be determined 
without regard to such amounts paid.’’; 
and 
(3) in paragraph (3), by striking ‘‘and (2)’’ and 
inserting ‘‘(2), and (4)’’. 
(d) OTHER AMENDMENTS TO MEDICAID.— 
(1) ELIGIBILITY
OF
A
NEWBORN.—Section 
1902(e)(4) of the Social Security Act (42 U.S.C. 
1396a(e)(4)) is amended in the first sentence by 
striking ‘‘so long as the child is a member of the 
woman’s household and the woman remains (or 
would remain if pregnant) eligible for such assist-
ance’’. 
(2) APPLICATION OF QUALIFIED ENTITIES TO 
PRESUMPTIVE ELIGIBILITY FOR PREGNANT WOMEN 
UNDER MEDICAID.—Section 1920(b) of the Social 
Security Act (42 U.S.C. 1396r–1(b)) is amended by 
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adding after paragraph (2) the following flush sen-
tence: 
‘‘The term ‘qualified provider’ includes a qualified entity 
as defined in section 1920A(b)(3).’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section apply to items and services furnished on or 
after October 1, 2007, without regard to whether regula-
tions implementing such amendments have been promul-
gated. 
SEC. 3. OPTIONAL COVERAGE OF LEGAL IMMIGRANTS 
UNDER THE MEDICAID PROGRAM AND SCHIP. 
(a) MEDICAID PROGRAM.—Section 1903(v) of the 
Social Security Act (42 U.S.C. 1396b(v)) is amended— 
(1) in paragraph (1), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraphs (2) and (4)’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4)(A) A State may elect (in a plan amendment 
under this title) to provide medical assistance under this 
title for aliens who are lawfully residing in the United 
States (including battered aliens described in section 
431(c) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996) and who are otherwise 
eligible for such assistance, within any of the following eli-
gibility categories: 
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‘‘(i) PREGNANT WOMEN.—Women during preg-
nancy (and during the 60-day period beginning on 
the last day of the pregnancy). 
‘‘(ii) CHILDREN.—Children (as defined under 
such plan), including optional targeted low-income 
children described in section 1905(u)(2)(B). 
‘‘(B)(i) In the case of a State that has elected to pro-
vide medical assistance to a category of aliens under sub-
paragraph (A), no debt shall accrue under an affidavit of 
support against any sponsor of such an alien on the basis 
of provision of assistance to such category and the cost 
of such assistance shall not be considered as an unreim-
bursed cost. 
‘‘(ii) The provisions of sections 401(a), 402(b), 403, 
and 421 of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 shall not apply to a 
State that makes an election under subparagraph (A).’’. 
(b) TITLE XXI.—Section 2107(e)(1) of the Social 
Security Act (42 U.S.C. 1397gg(e)(1)) is amended by add-
ing at the end the following new subparagraph: 
‘‘(E) Section 1903(v)(4) (relating to op-
tional coverage of permanent resident alien 
pregnant women and children), but only with 
respect to an eligibility category under this title, 
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