340
fiscal year’’ and inserting ‘‘the end of the 
period described in subparagraph (D)’’; and 
(2) by adding at the end the following: 
‘‘(D) PERIOD DESCRIBED.—Subject to sub-
paragraph (E), for purposes of this paragraph, 
the period described in this subparagraph is the 
period that begins with the date on which the 
Secretary makes a finding described in subpara-
graph (A)(i) with respect to State performance 
in a fiscal year and ends on September 30 of the 
fiscal year following the fiscal year in which the 
Secretary makes such a finding. 
‘‘(E) NO PENALTY IF STATE CORRECTS NON-
COMPLIANCE IN FINDING YEAR.—The Secretary 
shall not take a reduction described in subpara-
graph (A) with respect to a noncompliance de-
scribed in clause (i) of that subparagraph if the 
Secretary determines that the State has corrected 
the noncompliance in the fiscal year in which 
the Secretary makes the finding of the non-
compliance.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall be effective with respect to determinations 
of State compliance for fiscal year 2002 and succeeding fis-
cal years.
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(c) SPECIAL RULE FOR FISCAL YEAR 2001.—Notwith-
standing any other provision of law, the Secretary shall not 
take against amounts otherwise payable to a State, a reduc-
tion described in section 409(a)(8)(A) of the Social Security 
Act (42 U.S.C. 609(a)(8)(A)) with respect to a noncompli-
ance described in such section occurring in fiscal year 2001 
if the Secretary determines that the State has corrected such 
noncompliance in fiscal year 2002 or 2003. 
TITLE IV—CHILD WELFARE 
SEC. 401. EXTENSION OF AUTHORITY TO APPROVE DEM-
ONSTRATION PROJECTS. 
Section 1130(a)(2) (42 U.S.C. 1320a–9(a)(2)), as 
amended by section 5 of the Welfare Reform Extension Act 
of 2003 (Public Law 108–040, 117 Stat. 837) is amended 
by striking ‘‘2003’’ and inserting ‘‘2008’’. 
SEC. 402. REMOVAL OF COMMONWEALTH OF PUERTO RICO 
FOSTER CARE FUNDS FROM LIMITATION ON 
PAYMENTS. 
Section 1108(a)(2) (42 U.S.C. 1308(a)(2)), as amend-
ed by section 116(b)(2), is amended—
(1) by striking ‘‘Paragraph (1)’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—Paragraph (1)’’; 
(2) in subparagraph (A) (as added by paragraph 
(1)), by striking ‘‘or 418(a)(4)(B)’’ and inserting
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‘‘418(a)(4)(B), or, subject to clause (ii) of subpara-
graph (B), payments to Puerto Rico described in 
clause (i) of that subparagraph’’ before the period; 
and 
(3) by adding at the end the following: 
‘‘(B) 
CERTAIN
PAYMENTS
TO
PUERTO 
RICO.—
‘‘(i) PAYMENTS DESCRIBED.—For pur-
poses of subparagraph (A), payments de-
scribed in this subparagraph are payments 
made to Puerto Rico under part E of title 
IV with respect to the portion of foster care 
payments made to Puerto Rico for fiscal 
year 2005 or any fiscal year thereafter that 
exceed the total amount of such payments 
for fiscal year 2002. 
‘‘(ii) LIMITATION.—The total amount 
of payments to Puerto Rico described in 
clause (i) that are disregarded under sub-
paragraph (A) may not exceed $6,250,000 
for each of fiscal years 2005 through 2008.’’. 
SEC. 403. TECHNICAL CORRECTION. 
Section 1130(b)(1) (42 U.S.C. 1320a–9(b)(1)) is 
amended 
by 
striking 
‘‘422(b)(9)’’ 
and 
inserting 
‘‘422(b)(10)’’.
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TITLE V—SUPPLEMENTAL 
SECURITY INCOME 
SEC. 501. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS. 
Section 1633 (42 U.S.C. 1383b) is amended by adding 
at the end the following: 
‘‘(e)(1) The Commissioner of Social Security shall re-
view determinations, made by State agencies pursuant to 
subsection (a) in connection with applications for benefits 
under this title on the basis of blindness or disability, that 
individuals who have attained 18 years of age are blind 
or disabled as of a specified onset date. The Commissioner 
of Social Security shall review such a determination before 
any action is taken to implement the determination. 
‘‘(2)(A) In carrying out paragraph (1), the Commis-
sioner of Social Security shall review—
‘‘(i) at least 20 percent of all determinations re-
ferred to in paragraph (1) that are made in fiscal 
year 2004;
‘‘(ii) at least 40 percent of all such determina-
tions that are made in fiscal year 2005; and 
‘‘(iii) at least 50 percent of all such determina-
tions that are made in fiscal year 2006 or thereafter. 
‘‘(B) In carrying out subparagraph (A), the Commis-
sioner of Social Security shall, to the extent feasible, select
344
for review the determinations which the Commissioner of 
Social Security identifies as being the most likely to be in-
correct.’’. 
TITLE VI—TRANSITIONAL 
MEDICAL ASSISTANCE 
SEC. 601. EXTENSION AND SIMPLIFICATION OF THE TRAN-
SITIONAL MEDICAL ASSISTANCE PROGRAM 
(TMA). 
(a) OPTION
OF CONTINUOUS ELIGIBILITY
FOR 12 
MONTHS; OPTION OF CONTINUING COVERAGE FOR UP TO 
AN ADDITIONAL YEAR.—
(1) OPTION OF CONTINUOUS ELIGIBILITY FOR 12 
MONTHS BY MAKING REPORTING REQUIREMENTS OP-
TIONAL.—Section 1925(b) (42 U.S.C. 1396r–6(b)) is 
amended—
(A) in paragraph (1), by inserting ‘‘, at the 
option of a State,’’ after ‘‘and which’’; 
(B) in paragraph (2)(A), by inserting 
‘‘Subject to subparagraph (C):’’ after ‘‘(A) NO-
TICES.—’’; 
(C) in paragraph (2)(B), by inserting 
‘‘Subject to subparagraph (C):’’ after ‘‘(B) RE-
PORTING REQUIREMENTS.—’’; 
(D) by adding at the end the following:
345
‘‘(C) STATE OPTION TO WAIVE NOTICE AND 
REPORTING
REQUIREMENTS.—A 
State 
may 
waive some or all of the reporting requirements 
under clauses (i) and (ii) of subparagraph (B). 
Insofar as it waives such a reporting require-
ment, the State need not provide for a notice 
under subparagraph (A) relating to such require-
ment.’’; and 
(E) in paragraph (3)(A)(iii), by inserting 
‘‘the State has not waived under paragraph 
(2)(C) the reporting requirement with respect to 
such month under paragraph (2)(B) and if’’ 
after ‘‘6-month period if’’. 
(2) STATE OPTION TO EXTEND ELIGIBILITY FOR 
LOW-INCOME INDIVIDUALS FOR UP TO 12 ADDITIONAL 
MONTHS.—Section 1925 (42 U.S.C. 1396r–6) is fur-
ther amended—
(A) by redesignating subsections (c) through 
(f) as subsections (d) through (g), respectively; 
and 
(B) by inserting after subsection (b) the fol-
lowing: 
‘‘(c) STATE OPTION OF UP TO 12 MONTHS OF ADDI-
TIONAL ELIGIBILITY.—