under such plan for such State for fiscal year 
2007 will exceed the sum of— 
‘‘(i) the amount of the State’s allot-
ments for each of fiscal years 2005 and 
2006 that will not be expended by the end 
of fiscal year 2006; and 
‘‘(ii) the amount of the State’s allot-
ment for fiscal year 2007. 
‘‘(C) AMOUNTS USED IN COMPUTING RE-
DISTRIBUTIONS FOR FISCAL YEAR 2004 ALLOT-
MENTS.—For 
purposes 
of 
subparagraph 
(A)(i)— 
‘‘(i) the amount specified in this 
clause is the total amount of unspent fiscal 
year 2004 allotments available for redis-
tribution under subsection (f); 
‘‘(ii) the amount specified in this 
clause for an initial shortfall State is the 
amount the Secretary determines will 
eliminate the estimated shortfall described 
in subparagraph (B) for the State; and 
‘‘(iii) the amount specified in this 
clause is the total sum of the amounts 
specified in clause (ii) for all initial short-
fall States. 
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‘‘(2) ADDITIONAL ALLOTMENTS TO ELIMINATE 
FISCAL YEAR 2007 FUNDING SHORTFALLS REMAIN-
ING AFTER REDISTRIBUTION OF UNSPENT FISCAL 
YEAR 2004 ALLOTMENTS.— 
‘‘(A) IN GENERAL.—In addition to the al-
lotments provided under subsection (b) and (c) 
for fiscal year 2007, the Secretary shall allot to 
each remaining shortfall State described in sub-
paragraph (B) such amount as the Secretary 
determines will eliminate the estimated shortfall 
described in such subparagraph for the State. 
‘‘(B) REMAINING SHORTFALL STATE DE-
SCRIBED.—For purposes of subparagraph (A), 
a remaining shortfall State is a State (including 
a commonwealth or territory described in sub-
section (c)(3)) with a State child health plan 
approved under this title for which the Sec-
retary estimates, on the basis of the most re-
cent data available to the Secretary as of the 
date of the enactment of this subsection, that 
the projected federal expenditures under such 
plan for such State for fiscal year 2007 will ex-
ceed the sum of— 
‘‘(i) the amount of the State’s allot-
ments for each of fiscal years 2005 and 
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2006 that will not be expended by the end 
of fiscal year 2006; 
‘‘(ii) the amount of the State’s allot-
ment for fiscal year 2007; and 
‘‘(iii) the amount, if any, of unspent 
allotments for fiscal year 2004 that are to 
be redistributed to the State during fiscal 
year 2007 in accordance with subsection 
(f) and paragraph (1). 
‘‘(C) 1-YEAR
AVAILABILITY; NO
REDIS-
TRIBUTION OF UNEXPENDED ADDITIONAL AL-
LOTMENTS.—Notwithstanding subsections (e) 
and (f), amounts allotted to a remaining short-
fall State pursuant to this paragraph shall only 
remain available for expenditure by the State 
through September 30, 2007. Any amounts of 
such allotments that remain unexpended as of 
such date shall not be subject to redistribution 
under subsection (f) and shall revert to the 
Treasury on October 1, 2007. 
‘‘(D) APPROPRIATION; ALLOTMENT
AU-
THORITY.—For the purpose of providing addi-
tional allotments to remaining shortfall States 
under this paragraph there is appropriated, out 
of any funds in the Treasury not otherwise ap-
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propriated, such sums as are necessary for fis-
cal year 2007.’’. 
(b) EXTENDING
AUTHORITY
FOR
QUALIFYING 
STATES TO USE CERTAIN FUNDS FOR MEDICAID EX-
PENDITURES.—Section 2105(g)(1)(A) of the Social Secu-
rity Act (42 U.S.C. 1397ee(g)(1)(A)) is amended by strik-
ing ‘‘or 2005’’ and inserting ‘‘2005, or 2006’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section apply to items and services furnished on or 
after October 1, 2006, without regard to whether or not 
regulations implementing such amendments have been 
issued. 
(d) 
PERIOD
OF
EFFECTIVENESS.—Section 
2104(h)(2) of the Social Security Act (as added by sub-
section (a)) shall terminate on September 30, 2007, and 
shall be considered to have expired notwithstanding sec-
tion 257 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 907). 
Æ 
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