State during such prior quarter for the proper
and efficient administration of the program de-
scribed in this part.
‘‘(3) STATE MATCHING PERCENTAGE.—
‘‘(A) IN GENERAL.—With respect to the
calendar quarter for which the payment is to be
made under this section, the State will be re-
sponsible for contributing an amount equal to
40 percent of the percentage of the amount the
State is responsible for expending for medical
assistance under title XIX of the Social Secu-
rity Act, based on the State percentage deter-
mined under section 1905(b) of such Act (42
U.S.C. 1396d(b)), for the State for the calendar
quarter involved.
‘‘(B) LIMITATION.—In no case shall the
State responsibility under subparagraph (A) for
a calendar quarter be less than an amount
equal to 10 percent of the amount determined
under paragraph (2)(A)(i) for the State for the
calendar quarter involved.
‘‘(C) TERRITORIES.—In the case of Puerto
Rico, the Virgin Islands, Guam, American
Samoa, and the Northern Mariana Islands, the
State percentage for purposes of determining
the State matching amount under subpara-
graph (A) shall be 20 percent.
‘‘(4) AVAILABILITY OF FUNDS.—Except as pro-
vided in paragraph (5), amounts provided to a State
under this section shall remain available until ex-
pended by the State.
‘‘(5) REDISTRIBUTION.—The Secretary shall
establish a procedure for the redistribution of any
funds—
‘‘(A) not expended by a State under this
title; and
‘‘(B) as determined by the Secretary, after
consultation with the governor of the State,
that are unlikely to be used in the future by the
State.
‘‘(6) STATE
REQUEST
FOR
REDUCTION
IN
FUNDS.—Nothing in this section shall be construed
to prohibit a State from requesting only a portion of
the amount allotted to the State under this section.
‘‘(7) RESERVATION.—
‘‘(A) IN GENERAL.—Of the amount appro-
priated to carry out this Act for a fiscal year,
the Secretary shall reserve .15 percent of such
amount for allocation among the territories de-
scribed in paragraph (2)(C).
‘‘(B) ALLOCATION.—A territory described
in paragraph (2)(C) shall be eligible to receive
an amount that bears the same relationship to
the amount reserved for such year under sub-
paragraph (A), as the total number of unin-
sured eligible children in the territory in a base
year as determined appropriate by the Sec-
retary bears to the total number of uninsured
eligible children in all participating territories
in such base year.
‘‘(b) REDUCTION IN PAYMENTS FOR ADMINISTRA-
TIVE ERRORS.—
‘‘(1) IN GENERAL.—In the case of administra-
tive errors described in paragraph (2), matching
payments available to a State under subsection (a)
shall be reduced by an amount determined appro-
priate by the Secretary.
‘‘(2) ADMINISTRATIVE
ERRORS
DESCRIBED.—
The administrative errors described in this para-
graph include the following:
‘‘(A) An eligibility error rate for premium
assistance to the extent the applicable error
rate exceeds the maximum permissible error
rate specified by the Secretary.
‘‘(B) Misappropriations or other expendi-
tures that the Secretary finds are attributable
to malfeasance or misfeasance.
‘‘(c) AUDITS.—The Secretary shall conduct regular
audits of the activities conducted under this part.
‘‘(d) BUDGETARY TREATMENT.—Subject to section
2825, this section constitutes budget authority in advance
of appropriations Acts, and represents the obligation of
the Federal Government to provide payments to the States
in accordance with this section.
‘‘(e) NONENTITLEMENT.—Nothing in this title shall
be construed as providing an individual with an entitle-
ment to assistance under this title.
‘‘SEC. 2825. AUTHORIZATION OF APPROPRIATIONS AND
DEFICIT REDUCTION.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
is authorized to be appropriated to make Federal pay-
ments under this title—
‘‘(1) for fiscal year 1998, $3,000,000,000;
‘‘(2) for fiscal year 1999, $3,000,000,000;
‘‘(3) for fiscal year 2000, $4,000,000,000;
‘‘(4) for fiscal year 2001, $5,000,000,000; and
‘‘(5) for fiscal year 2002, $5,000,000,000.
‘‘(b) DEFICIT REDUCTION TARGETS.—For purposes
of this section, the deficit reduction target shall be—
‘‘(1) for fiscal year 1998, $3,000,000,000;
‘‘(2) for fiscal year 1999, $3,000,000,000;
‘‘(3) for fiscal year 2000, $2,000,000,000;
‘‘(4) for fiscal year 2001, $1,000,000,000; and
‘‘(5) for fiscal year 2002, $1,000,000,000.
Any amount of revenue available under this subsection
shall be deposited into the Treasury and used for deficit
reduction.
‘‘(c) REDUCTION IN AUTHORIZED AMOUNT.—
‘‘(1) IN GENERAL.—If, with respect to a fiscal
year, the total estimated amount of revenue derived
for the financing of the program under this title is
less than the total target amount determined under
paragraph (2), then the amount referred to for the
following fiscal year under subsection (a) shall be re-
duced by the amount by which the amount of such
estimated revenue is less than the total target
amount determined under paragraph (2) for such
fiscal year multiplied by 2⁄3.
‘‘(2) TOTAL TARGET AMOUNT.—For purposes
of paragraph (1), the total target amount for a fiscal
year shall be equal to the sum of—
‘‘(A) the amount authorized to be appro-
priated for such year under subsection (a); and
‘‘(B) the deficit reduction target for such
fiscal year under subsection (b).
‘‘(3) REVENUE IN EXCESS OF ESTIMATES.—If
the estimated amount of revenue described in para-
graph (1) for a fiscal year is greater than the total
target amount under paragraph (2) for such fiscal
year, then the amount authorized for the following
fiscal year under subsection (a) shall be increased in
the same manner as the reduction described in para-
graph (1).
‘‘Subpart 2—Services for Pregnant Women, New
Mothers, and Infants
‘‘SEC. 2831. PROGRAM FOR PREGNANT WOMEN AND IN-
FANTS.
‘‘(a) ESTABLISHMENT OF PROGRAM.—A participat-
ing State may use up to 5 percent of the amount of the
allotment to the State for a fiscal year under section 2825
to establish a program to meet the needs identified by the
State in the statewide needs assessments prepared by the
States under section 505(a)(1)(A) of the Social Security
Act (42 U.S.C. 705(a)(1)(A)).
‘‘(b) COORDINATION.—A State shall take actions to
ensure that the program established under this section is
coordinated with the programs operated by the State
under title V of the Social Security Act (42 U.S.C. 705).