† HR 2 EAS 
‘‘(16) for fiscal year 2013, for purposes of mak-
ing 2 semi-annual allotments— 
‘‘(A) $2,850,000,000 for the period begin-
ning on October 1, 2012, and ending on March 
31, 2013, and 
‘‘(B) $2,850,000,000 for the period begin-
ning on April 1, 2013, and ending on September 
30, 2013.’’. 
SEC. 102. ALLOTMENTS FOR STATES AND TERRITORIES FOR 
FISCAL YEARS 2009 THROUGH 2013. 
Section 2104 (42 U.S.C. 1397dd) is amended— 
(1) in subsection (b)(1), by striking ‘‘subsection 
(d)’’ and inserting ‘‘subsections (d) and (m)’’; 
(2) in subsection (c)(1), by striking ‘‘subsection 
(d)’’ and inserting ‘‘subsections (d) and (m)(4)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(m) 
ALLOTMENTS
FOR
FISCAL
YEARS
2009 
THROUGH 2013.— 
‘‘(1) FOR FISCAL YEAR 2009.— 
‘‘(A) FOR THE 50 STATES AND THE DIS-
TRICT OF COLUMBIA.—Subject to the succeeding 
provisions of this paragraph and paragraph (4), 
the Secretary shall allot for fiscal year 2009 
from the amount made available under sub-
† HR 2 EAS 
section (a)(12), to each of the 50 States and the 
District of Columbia 110 percent of the highest 
of the following amounts for such State or Dis-
trict: 
‘‘(i) The total Federal payments to the 
State under this title for fiscal year 2008, 
multiplied by the allotment increase factor 
determined under paragraph (5) for fiscal 
year 2009. 
‘‘(ii) The amount allotted to the State 
for fiscal year 2008 under subsection (b), 
multiplied by the allotment increase factor 
determined under paragraph (5) for fiscal 
year 2009. 
‘‘(iii) The projected total Federal pay-
ments to the State under this title for fiscal 
year 2009, as determined on the basis of the 
February 2009 projections certified by the 
State to the Secretary by not later than 
March 31, 2009. 
‘‘(B) FOR THE COMMONWEALTHS AND TER-
RITORIES.—Subject to the succeeding provisions 
of this paragraph and paragraph (4), the Sec-
retary shall allot for fiscal year 2009 from the 
amount made available under subsection (a)(12)
† HR 2 EAS 
to each of the commonwealths and territories de-
scribed in subsection (c)(3) an amount equal to 
the highest amount of Federal payments to the 
commonwealth or territory under this title for 
any fiscal year occurring during the period of 
fiscal years 1999 through 2008, multiplied by the 
allotment increase factor determined under para-
graph (5) for fiscal year 2009, except that sub-
paragraph (B) thereof shall be applied by sub-
stituting ‘the United States’ for ‘the State’. 
‘‘(C) 
ADJUSTMENT
FOR
QUALIFYING 
STATES.—In the case of a qualifying State de-
scribed in paragraph (2) of section 2105(g), the 
Secretary shall permit the State to submit a re-
vised projection described in subparagraph 
(A)(iii) in order to take into account changes in 
such projections attributable to the application of 
paragraph (4) of such section. 
‘‘(2) FOR FISCAL YEARS 2010 THROUGH 2012.— 
‘‘(A) IN GENERAL.—Subject to paragraphs 
(4) and (6), from the amount made available 
under paragraphs (13) through (15) of subsection 
(a) for each of fiscal years 2010 through 2012, 
respectively, the Secretary shall compute a State 
allotment for each State (including the District
† HR 2 EAS 
of Columbia and each commonwealth and terri-
tory) for each such fiscal year as follows: 
‘‘(i) GROWTH
FACTOR
UPDATE
FOR 
FISCAL YEAR 2010.—For fiscal year 2010, 
the allotment of the State is equal to the 
sum of— 
‘‘(I) the amount of the State allot-
ment under paragraph (1) for fiscal 
year 2009; and 
‘‘(II) the amount of any payments 
made to the State under subsection (k), 
(l), or (n) for fiscal year 2009, 
multiplied by the allotment increase factor 
under paragraph (5) for fiscal year 2010. 
‘‘(ii) 
REBASING
IN
FISCAL
YEAR 
2011.—For fiscal year 2011, the allotment of 
the State is equal to the Federal payments 
to the State that are attributable to (and 
countable towards) the total amount of al-
lotments available under this section to the 
State in fiscal year 2010 (including pay-
ments made to the State under subsection 
(n) for fiscal year 2010 as well as amounts 
redistributed to the State in fiscal year 
2010), multiplied by the allotment increase
† HR 2 EAS 
factor under paragraph (5) for fiscal year 
2011. 
‘‘(iii) GROWTH FACTOR UPDATE FOR 
FISCAL YEAR 2012.—For fiscal year 2012, 
the allotment of the State is equal to the 
sum of— 
‘‘(I) the amount of the State allot-
ment under clause (ii) for fiscal year 
2011; and 
‘‘(II) the amount of any payments 
made to the State under subsection (n) 
for fiscal year 2011, 
multiplied by the allotment increase factor 
under paragraph (5) for fiscal year 2012. 
‘‘(3) FOR FISCAL YEAR 2013.— 
‘‘(A) FIRST HALF.—Subject to paragraphs 
(4) and (6), from the amount made available 
under subparagraph (A) of paragraph (16) of 
subsection (a) for the semi-annual period de-
scribed in such paragraph, increased by the 
amount of the appropriation for such period 
under section 108 of the Children’s Health Insur-
ance Program Reauthorization Act of 2009, the 
Secretary shall compute a State allotment for 
each State (including the District of Columbia
† HR 2 EAS 
and each commonwealth and territory) for such 
semi-annual period in an amount equal to the 
first half ratio (described in subparagraph (D)) 
of the amount described in subparagraph (C). 
‘‘(B) SECOND
HALF.—Subject to para-
graphs (4) and (6), from the amount made 
available under subparagraph (B) of paragraph 
(16) of subsection (a) for the semi-annual period 
described in such paragraph, the Secretary shall 
compute a State allotment for each State (in-
cluding the District of Columbia and each com-
monwealth and territory) for such semi-annual 
period in an amount equal to the amount made 
available under such subparagraph, multiplied 
by the ratio of— 
‘‘(i) the amount of the allotment to 
such State under subparagraph (A); to 
‘‘(ii) the total of the amount of all of 
the allotments made available under such 
subparagraph. 
‘‘(C) FULL
YEAR
AMOUNT
BASED
ON 
REBASED
AMOUNT.—The amount described in 
this subparagraph for a State is equal to the 
Federal payments to the State that are attrib-
utable to (and countable towards) the total
† HR 2 EAS 
amount of allotments available under this section 
to the State in fiscal year 2012 (including pay-
ments made to the State under subsection (n) for 
fiscal year 2012 as well as amounts redistributed 
to the State in fiscal year 2012), multiplied by 
the allotment increase factor under paragraph 
(5) for fiscal year 2013. 
‘‘(D) FIRST
HALF
RATIO.—The first half 
ratio described in this subparagraph is the ratio 
of— 
‘‘(i) the sum of— 
‘‘(I) the amount made available 
under subsection (a)(16)(A); and 
‘‘(II) the amount of the appro-
priation for such period under section 
108 of the Children’s Health Insurance 
Program Reauthorization Act of 2009; 
to 
‘‘(ii) the sum of the— 
‘‘(I) amount described in clause 
(i); and 
‘‘(II) the amount made available 
under subsection (a)(16)(B). 
‘‘(4) PRORATION RULE.—If, after the application 
of this subsection without regard to this paragraph,
† HR 2 EAS 
the sum of the allotments determined under para-
graph (1), (2), or (3) for a fiscal year (or, in the case 
of fiscal year 2013, for a semi-annual period in such 
fiscal year) exceeds the amount available under sub-
section (a) for such fiscal year or period, the Sec-
retary shall reduce each allotment for any State 
under such paragraph for such fiscal year or period 
on a proportional basis. 
‘‘(5) ALLOTMENT INCREASE FACTOR.—The allot-
ment increase factor under this paragraph for a fiscal 
year is equal to the product of the following: 
‘‘(A) PER CAPITA HEALTH CARE GROWTH 
FACTOR.—1 plus the percentage increase in the 
projected per capita amount of National Health 
Expenditures from the calendar year in which 
the previous fiscal year ends to the calendar year 
in which the fiscal year involved ends, as most 
recently published by the Secretary before the be-
ginning of the fiscal year. 
‘‘(B) CHILD
POPULATION
GROWTH
FAC-
TOR.—1 plus the percentage increase (if any) in 
the population of children in the State from July 
1 in the previous fiscal year to July 1 in the fis-
cal year involved, as determined by the Secretary 
based on the most recent published estimates of
† HR 2 EAS 
the Bureau of the Census before the beginning of 
the fiscal year involved, plus 1 percentage point. 
‘‘(6) INCREASE IN ALLOTMENT TO ACCOUNT FOR 
APPROVED PROGRAM EXPANSIONS.—In the case of one 
of the 50 States or the District of Columbia that— 
‘‘(A) has submitted to the Secretary, and 
has approved by the Secretary, a State plan 
amendment or waiver request relating to an ex-
pansion of eligibility for children or benefits 
under this title that becomes effective for a fiscal 
year (beginning with fiscal year 2010 and end-
ing with fiscal year 2013); and 
‘‘(B) has submitted to the Secretary, before 
the August 31 preceding the beginning of the fis-
cal year, a request for an expansion allotment 
adjustment under this paragraph for such fiscal 
year that specifies— 
‘‘(i) the additional expenditures that 
are attributable to the eligibility or benefit 
expansion provided under the amendment 
or waiver described in subparagraph (A), as 
certified by the State and submitted to the 
Secretary by not later than August 31 pre-
ceding the beginning of the fiscal year; and
† HR 2 EAS 
‘‘(ii) the extent to which such addi-
tional expenditures are projected to exceed 
the allotment of the State or District for the 
year, 
subject to paragraph (4), the amount of the allotment 
of the State or District under this subsection for such 
fiscal year shall be increased by the excess amount de-
scribed in subparagraph (B)(i). A State or District 
may only obtain an increase under this paragraph 
for an allotment for fiscal year 2010 or fiscal year 
2012. 
‘‘(7) AVAILABILITY OF AMOUNTS FOR SEMI-AN-
NUAL PERIODS IN FISCAL YEAR 2013.—Each semi-an-
nual allotment made under paragraph (3) for a pe-
riod in fiscal year 2013 shall remain available for ex-
penditure under this title for periods after the end of 
such fiscal year in the same manner as if the allot-
ment had been made available for the entire fiscal 
year.’’. 
SEC. 103. CHILD ENROLLMENT CONTINGENCY FUND. 
Section 2104 (42 U.S.C. 1397dd), as amended by sec-
tion 102, is amended by adding at the end the following 
new subsection: 
‘‘(n) CHILD ENROLLMENT CONTINGENCY FUND.—
† HR 2 EAS 
‘‘(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a fund 
which shall be known as the ‘Child Enrollment Con-
tingency Fund’ (in this subsection referred to as the 
‘Fund’). Amounts in the Fund shall be available 
without further appropriations for payments under 
this subsection. 
‘‘(2) DEPOSITS INTO FUND.— 
‘‘(A) INITIAL AND SUBSEQUENT APPROPRIA-
TIONS.—Subject to subparagraphs (B) and (D), 
out of any money in the Treasury of the United 
States not otherwise appropriated, there are ap-
propriated to the Fund— 
‘‘(i) for fiscal year 2009, an amount 
equal to 20 percent of the amount made 
available under paragraph (12) of sub-
section (a) for the fiscal year; and 
‘‘(ii) for each of fiscal years 2010 
through 2012 (and for each of the semi-an-
nual allotment periods for fiscal year 2013), 
such sums as are necessary for making pay-
ments to eligible States for such fiscal year 
or period, but not in excess of the aggregate 
cap described in subparagraph (B).
† HR 2 EAS 
‘‘(B) AGGREGATE CAP.—The total amount 
available for payment from the Fund for each of 
fiscal years 2010 through 2012 (and for each of 
the semi-annual allotment periods for fiscal year 
2013), taking into account deposits made under 
subparagraph (C), shall not exceed 20 percent of 
the amount made available under subsection (a) 
for the fiscal year or period. 
‘‘(C) INVESTMENT OF FUND.—The Secretary 
of the Treasury shall invest, in interest bearing 
securities of the United States, such currently 
available portions of the Fund as are not imme-
diately required for payments from the Fund. 
The income derived from these investments con-
stitutes a part of the Fund. 
‘‘(D) AVAILABILITY OF EXCESS FUNDS FOR 
PERFORMANCE BONUSES.—Any amounts in ex-
cess of the aggregate cap described in subpara-
graph (B) for a fiscal year or period shall be 
made available for purposes of carrying out sec-
tion 2105(a)(3) for any succeeding fiscal year 
and the Secretary of the Treasury shall reduce 
the amount in the Fund by the amount so made 
available.
† HR 2 EAS 
‘‘(3) CHILD
ENROLLMENT
CONTINGENCY
FUND 
PAYMENTS.— 
‘‘(A) IN GENERAL.—If a State’s expendi-
tures under this title in fiscal year 2009, fiscal 
year 2010, fiscal year 2011, fiscal year 2012, or 
a semi-annual allotment period for fiscal year 
2013, exceed the total amount of allotments 
available under this section to the State in the 
fiscal year or period (determined without regard 
to any redistribution it receives under subsection 
(f) that is available for expenditure during such 
fiscal year or period, but including any carry-
over from a previous fiscal year) and if the aver-
age monthly unduplicated number of children 
enrolled under the State plan under this title 
(including children receiving health care cov-
erage through funds under this title pursuant to 
a waiver under section 1115) during such fiscal 
year or period exceeds its target average number 
of such enrollees (as determined under subpara-
graph (B)) for that fiscal year or period, subject 
to subparagraph (D), the Secretary shall pay to 
the State from the Fund an amount equal to the 
product of—
† HR 2 EAS 
‘‘(i) the amount by which such average 
monthly caseload exceeds such target num-
ber of enrollees; and 
‘‘(ii) the projected per capita expendi-
tures under the State child health plan (as 
determined under subparagraph (C) for the 
fiscal year), multiplied by the enhanced 
FMAP (as defined in section 2105(b)) for 
the State and fiscal year involved (or in 
which the period occurs). 
‘‘(B) TARGET AVERAGE NUMBER OF CHILD 
ENROLLEES.—In this paragraph, the target av-
erage number of child enrollees for a State— 
‘‘(i) for fiscal year 2009 is equal to the 
monthly average unduplicated number of 
children enrolled in the State child health 
plan under this title (including such chil-
dren receiving health care coverage through 
funds under this title pursuant to a waiver 
under section 1115) during fiscal year 2008 
increased by the population growth for chil-
dren in that State for the year ending on 
June 30, 2007 (as estimated by the Bureau 
of the Census) plus 1 percentage point; or
† HR 2 EAS 
‘‘(ii) for a subsequent fiscal year (or 
semi-annual period occurring in a fiscal 
year) is equal to the target average number 
of child enrollees for the State for the pre-
vious fiscal year increased by the child pop-
ulation growth factor described in sub-
section (m)(5)(B) for the State for the prior 
fiscal year. 
‘‘(C) PROJECTED
PER
CAPITA
EXPENDI-
TURES.—For purposes of subparagraph (A)(ii), 
the projected per capita expenditures under a 
State child health plan— 
‘‘(i) for fiscal year 2009 is equal to the 
average per capita expenditures (including 
both State and Federal financial participa-
tion) under such plan for the targeted low- 
income children counted in the average 
monthly caseload for purposes of this para-
graph during fiscal year 2008, increased by 
the annual percentage increase in the pro-
jected per capita amount of National 
Health Expenditures (as estimated by the 
Secretary) for 2009; or 
‘‘(ii) for a subsequent fiscal year (or 
semi-annual period occurring in a fiscal
† HR 2 EAS 
year) is equal to the projected per capita ex-
penditures under such plan for the previous 
fiscal year (as determined under clause (i) 
or this clause) increased by the annual per-
centage increase in the projected per capita 
amount of National Health Expenditures 
(as estimated by the Secretary) for the year 
in which such subsequent fiscal year ends. 
‘‘(D) PRORATION
RULE.—If the amounts 
available for payment from the Fund for a fiscal 
year or period are less than the total amount of 
payments determined under subparagraph (A) 
for the fiscal year or period, the amount to be 
paid under such subparagraph to each eligible 
State shall be reduced proportionally. 
‘‘(E) TIMELY PAYMENT; RECONCILIATION.— 
Payment under this paragraph for a fiscal year 
or period shall be made before the end of the fis-
cal year or period based upon the most recent 
data for expenditures and enrollment and the 
provisions of subsection (e) of section 2105 shall 
apply to payments under this subsection in the 
same manner as they apply to payments under 
such section.
† HR 2 EAS 
‘‘(F) CONTINUED
REPORTING.—For pur-
poses of this paragraph and subsection (f), the 
State shall submit to the Secretary the State’s 
projected Federal expenditures, even if the 
amount of such expenditures exceeds the total 
amount of allotments available to the State in 
such fiscal year or period. 
‘‘(G) APPLICATION
TO
COMMONWEALTHS 
AND TERRITORIES.—No payment shall be made 
under this paragraph to a commonwealth or ter-
ritory described in subsection (c)(3) until such 
time as the Secretary determines that there are 
in effect methods, satisfactory to the Secretary, 
for the collection and reporting of reliable data 
regarding the enrollment of children described in 
subparagraphs (A) and (B) in order to accu-
rately determine the commonwealth’s or terri-
tory’s eligibility for, and amount of payment, 
under this paragraph.’’. 
SEC. 104. CHIP PERFORMANCE BONUS PAYMENT TO OFFSET 
ADDITIONAL ENROLLMENT COSTS RESULT-
ING FROM ENROLLMENT AND RETENTION EF-
FORTS. 
Section 2105(a) (42 U.S.C. 1397ee(a)) is amended by 
adding at the end the following new paragraphs: