I 
109TH CONGRESS 
2D SESSION 
H. R. 6098 
To amend title XXI of the Social Security Act to eliminate funding shortfalls 
for the State Children’s Health Insurance Program (SCHIP) for fiscal 
year 2007. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2006 
Mr. BARROW (for himself, Mr. BOSWELL, Mr. DINGELL, Mr. WAXMAN, Mr. 
BOUCHER, Mr. LEWIS of Georgia, Mr. PALLONE, Mr. BISHOP of Georgia, 
Mr. BROWN of Ohio, Mr. POMEROY, Mrs. CAPPS, Mr. MARSHALL, Mr. 
SCOTT of Georgia, Mr. MELANCON, and Ms. SCHWARTZ of Pennsylvania) 
introduced the following bill; which was referred to the Committee on En-
ergy and Commerce 
A BILL 
To amend title XXI of the Social Security Act to eliminate 
funding shortfalls for the State Children’s Health Insur-
ance Program (SCHIP) for fiscal year 2007. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Keep Kids Covered 
Act of 2006’’. 
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SEC. 2. ELIMINATION OF SCHIP FUNDING SHORTFALLS 
FOR FISCAL YEAR 2007. 
(a) IN GENERAL.—Section 2104 of the Social Secu-
rity Act (42 U.S.C. 1397dd) is amended— 
(1) in each of subsections (a), (b)(1), and 
(c)(1), by striking ‘‘subsection (d)’’ and inserting 
‘‘subsections (d) and (h)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) SPECIAL
RULE
FOR
REDISTRIBUTION
OF 
UNSPENT FISCAL YEAR 2004 ALLOTMENTS AND ADDI-
TIONAL ALLOTMENTS TO ELIMINATE FISCAL YEAR 2007 
FUNDING SHORTFALLS.— 
‘‘(1) SPECIAL RULE FOR REDISTRIBUTION OF 
FISCAL YEAR 2004 ALLOTMENTS.— 
‘‘(A) IN GENERAL.—In the case of a State 
that expends all of its allotment under sub-
section (b) or (c) of this section for fiscal year 
2004 by the end of fiscal year 2006 and is an 
initial shortfall State described in subparagraph 
(B), the Secretary shall redistribute to the 
State under subsection (f) of this section (from 
the fiscal year 2004 allotments of other States) 
the following amount: 
‘‘(i) STATE.—In the case of one of the 
50 States or the District of Columbia, the 
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amount specified in subparagraph (C)(i) 
(less the total of the amounts under clause 
(ii)), multiplied by the ratio of the amount 
specified in subparagraph (C)(ii) for the 
State to the amount specified in subpara-
graph (C)(iii). 
‘‘(ii) TERRITORY.—In the case of a 
commonwealth or territory described in 
subsection (c)(3), an amount that bears 
the same ratio to 1.05 percent of the 
amount specified in subparagraph (C)(i) as 
the ratio of the commonwealth’s or terri-
tory’s fiscal year 2004 allotment under 
subsection (c) bears to the total of all such 
allotments for such fiscal year under such 
subsection. 
‘‘(B) INITIAL
SHORTFALL
STATE
DE-
SCRIBED.—For purposes of subparagraph (A), 
an initial shortfall State is a State with a State 
child health plan approved under this title for 
which the Secretary estimates, on the basis of 
the most recent data available to the Secretary 
as of the date of the enactment of this sub-
section, that the projected Federal expenditures 
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