‘‘SEC. 1353. STATE ELIGIBILITY AND APPROVAL; DEFAULT 
SAFEGUARD. 
‘‘(a) ENCOURAGING STATE OPTIONS FOR ALLOCA-
TIONS.— 
‘‘(1) IN GENERAL.—To be eligible for an alloca-
tion of funds under this part for a year (beginning 
with 2020), a State shall submit to the Adminis-
trator an application at such time (but, in the case 
of allocations for 2020, not later than 90 days after 
the date of the enactment of this title and, in the 
case of allocations for a subsequent year, not later 
than March 31 of the previous year) and in such 
form and manner as specified by the Administrator 
containing— 
‘‘(A) a description of how the funds will be 
used; and 
‘‘(B) such other information as the Admin-
istrator may require. 
‘‘(2) AUTOMATIC APPROVAL.—An application so 
submitted is approved unless the Administrator noti-
fies the State submitting the application, not later 
than 60 days after the date of the submission of 
such application, that the application has been de-
nied for not being in compliance with any require-
ment of this part and of the reason for such denial. 
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‘‘(3) 5-YEAR
APPLICATION
APPROVAL.—If an 
application of a State is approved for a purpose de-
scribed in section 1352 for a year, such application 
shall be treated as approved for such purpose for 
each of the subsequent 4 years. 
‘‘(b) DEFAULT FEDERAL SAFEGUARD.— 
‘‘(1) 2020.—For allocations made under this 
part for 2020, in the case of a State that does not 
submit an application under subsection (a) by the 
90-day submission date applicable to such year 
under subsection (a)(1) and in the case of a State 
that does submit such an application by such date 
that is not approved, the Administrator, in consulta-
tion with the State insurance commissioner, shall 
use, in accordance with paragraph (3), the allocation 
that would otherwise be provided to the State under 
this part for such year for such State. 
‘‘(2) 2021 AND SUBSEQUENT YEARS.—In the 
case of a State that does not have in effect an ap-
proved application under this section for 2021 or a 
subsequent year, the Administrator, in consultation 
with the State insurance commissioner, shall use, in 
accordance with paragraph (3), the allocation that 
would otherwise be provided to the State under this 
part for such year for such State. 
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‘‘(3) SPECIFIED
USE.—An allocation for a 
State made pursuant to paragraph (1) or (2) for a 
year shall be used to carry out the purpose described 
in section 1352(1) in such State by providing rein-
surance payments to health insurance issuers with 
respect to attachment range claims (as defined in 
section 1354(b)(2), using the dollar amounts speci-
fied in subparagraph (B) of such section for such 
year) in an amount equal to the percentage (speci-
fied for such year by the Secretary under such sub-
paragraph) of the amount of such claims. 
‘‘SEC. 1354. ALLOCATIONS. 
‘‘(a) APPROPRIATION.—For the purpose of providing 
allocations for States under this part there is appro-
priated, out of any money in the Treasury not otherwise 
appropriated $10,000,000,000 for 2020 and each subse-
quent year. 
‘‘(b) ALLOCATIONS.— 
‘‘(1) PAYMENT.— 
‘‘(A) IN GENERAL.—From amounts appro-
priated under subsection (a) for a year, the 
Secretary shall, with respect to a State and not 
later than the date specified under subpara-
graph (B) for such year, allocate for such State 
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the amount determined for such State and year 
under paragraph (2). 
‘‘(B) SPECIFIED DATE.—For purposes of 
subparagraph (A), the date specified in this 
subparagraph is— 
‘‘(i) for 2020, the date that is 45 days 
after the date of the enactment of this 
title; and 
‘‘(ii) for 2021 or a subsequent year, 
January 1 of the respective year. 
‘‘(C) 
NOTIFICATIONS
OF
ALLOCATION 
AMOUNTS.—For 2021 and each subsequent 
year, the Secretary shall notify each State of 
the amount determined for such State under 
paragraph (2) for such year by not later than 
January 1 of the previous year. 
‘‘(2) 
ALLOCATION
AMOUNT
DETERMINA-
TIONS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the amount determined under this 
paragraph for a year for a State is the amount 
that the Secretary estimates would be expended 
under this part for such year on attachment 
range claims of individuals residing in such 
State if all States used such funds only for the 
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purpose described in paragraph (1) of section 
1352 at the dollar amounts and percentage 
specified under subparagraph (B) for such year. 
For purposes of the previous sentence and sec-
tion 1353(b)(3), the term ‘attachment range 
claims’ means, with respect to an individual, the 
claims for such individual that exceed a dollar 
amount specified by the Secretary for a year, 
but do not exceed a ceiling dollar amount speci-
fied by the Secretary for such year, under sub-
paragraph (B). 
‘‘(B) SPECIFICATIONS.—For purposes of 
subparagraph (A) and section 1353(b)(3), the 
Secretary shall determine the dollar amounts 
and the percentage to be specified under sub-
paragraph (A) for a year in a manner to ensure 
that the total amount of expenditures under 
this part for such year is estimated to equal the 
total amount appropriated for such year under 
subsection (a) if such expenditures were used 
solely for the purpose described in paragraph 
(1) of section 1352 for attachment range claims 
at the dollar amounts and percentage so speci-
fied for such year. 
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‘‘(3) AVAILABILITY.—Funds allocated to a 
State under this subsection for a year shall remain 
available through the end of the subsequent year. 
‘‘(c) ANNUAL DISTRIBUTION OF PREVIOUS YEAR’S 
REMAINING FUNDS.— 
‘‘(1) IN GENERAL.— In carrying out subsection 
(b), the Secretary shall, with respect to a year (be-
ginning with 2021), not later than March 31 of such 
year— 
‘‘(A) determine the amount of funds, if 
any, from the amounts appropriated under sub-
section (a) for the previous year but not allo-
cated for such previous year; and 
‘‘(B) if the Secretary determines that any 
funds were not so allocated for such previous 
year, allocate such remaining funds to States 
for such year, in accordance with paragraph 
(2). 
‘‘(2) ALLOCATION
METHODOLOGY.—For pur-
poses of paragraph (1), of the total remaining funds 
to be allocated for a year pursuant to such para-
graph, the Secretary shall allocate to each State an 
amount that bears the same ratio to such total re-
maining funds as the amount allocated pursuant to 
subsection (b) to such State for such year bears to 
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the total allocations made under such subsection for 
such year.’’. 
Æ 
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