SECTION 1. ADDITIONAL AMOUNTS TO ADDRESS SCHIP FUNDING SHORTFALLS FOR 
              FISCAL YEAR 2007.

    (a) In General.--Section 2104(h) of the Social Security Act (42 
U.S.C. 1397dd(h)), as added by section 201(a) of the National 
Institutes of Health Reform Act of 2006, is amended--
            (1) in the heading for paragraph (2), by striking 
        ``remainder of reduction'' and inserting ``part'';
            (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
            (3) in each of subparagraphs (A) and (B) of paragraph (6) 
        (as redesignated by subparagraph (B) of this paragraph), by 
        striking ``and (3)'' and inserting ``(3), and (4)'';
            (4) in paragraph (7) (as so redesignated), by striking 
        ``and (3) in accordance with paragraph (5)'' and inserting 
        ``(3), and (4) in accordance with paragraph (6)''; and
            (5) by inserting after paragraph (3), the following:
            ``(4) Special rules for additional redistribution of 
        amounts necessary to address fiscal year 2007 funding 
        shortfalls.--With respect to months beginning during fiscal 
        year 2007 after April 30, 2007, the Secretary shall apply this 
        subsection in accordance with the following rules:
                    ``(A) Additional redistribution of certain 
                unexpended 2005 allotments.--
                            ``(i) Paragraphs (2)(A), (2)(B), (3)(A), 
                        and (3)(B) shall be applied by substituting 
                        `April 30' for `March 31' each place it 
                        appears.
                            ``(ii) Paragraph (3)(C) shall be applied--
                                    ``(I) by substituting `the amount 
                                described in subparagraph (A)(ii)(I) 
                                shall not be available for expenditure 
                                by the State on or after May 1, 2007' 
                                for `the applicable amount described in 
                                clause (ii) shall not be available for 
                                expenditure by the State on or after 
                                April 1, 2007'; and
                                    ``(II) without regard to clause 
                                (ii).
                            ``(iii) Paragraph (2)(B)(ii) shall be 
                        applied by substituting `paragraph (1) and this 
                        paragraph (for months beginning during fiscal 
                        year 2007 after March 31, 2007)' for `paragraph 
                        (1)'.
                            ``(iv) The heading for paragraph (3) shall 
                        be applied by substituting `7 months' for 
                        `half'.
                            ``(v) Without regard to that portion of 
                        paragraph (6)(A) that begins with `, but in no 
                        case' and ends with `March 31, 2007'.
                    ``(B) Redistribution of certain unexpended 2006 
                allotments.--After applying this subsection in 
                accordance with subparagraph (A), the Secretary shall 
                further apply this subsection in accordance with the 
                following rules:
                            ``(i) Paragraph (3)(A)(i) shall be applied 
                        by substituting `fiscal year 2006' for `fiscal 
                        year 2005'.
                            ``(ii) Paragraph (3)(B) shall be applied by 
                        substituting `fiscal year 2008' for `fiscal 
                        year 2007'.
                            ``(iii) Paragraph (3)(C)(i) shall be 
                        applied by substituting `May 1' for `April 1'.
                            ``(iv) Paragraph (3)(C) shall be applied by 
                        substituting the following clause for clause 
                        (ii) of such paragraph:
                            ```(ii) Applicable amount.--For purposes of 
                        clause (i), the applicable amount described in 
                        this clause is--
                                    ```(I) the amount by which (aa) the 
                                amount described in subparagraph 
                                (A)(ii)(I), exceeds (bb) the total of 
                                the amounts the Secretary determines 
                                will eliminate the estimated shortfalls 
                                for all States described in paragraph 
                                (2)(B) (after the application of 
                                subparagraph (A)) for the fiscal year; 
                                multiplied by
                                    ```(II) the ratio of the amount 
                                described in subparagraph (A)(ii)(I) 
                                with respect to the State to the total 
                                the amounts described in subpargraph 
                                (A)(ii)(I) for all States.'''.
                            ``(v) Paragraph (6)(B) shall be applied--
                                    ``(I) by substituting `2005 or 
                                2006' for `2005'; and
                                    ``(II) by substituting `fiscal year 
                                2005 under subsection (b) that remain 
                                unexpended through the end of fiscal 
                                year 2007 or fiscal year 2006 under 
                                such subsection that remain unexpended 
                                through the end of fiscal year 2008' 
                                for `fiscal year 2005 under subsection 
                                (b) that remain unexpended through the 
                                end of fiscal year 2007'.
                            ``(vi) Without regard to--
                                    ``(I) that portion of paragraph 
                                (6)(A) that begins with `, but in no 
                                case' and ends with `March 31, 2007'; 
                                and
                                    ``(II) paragraph (6)(C)(i).''.
    (b) Additional Conforming Amendments.--Section 2104(h) of the 
Social Security Act (42 U.S.C. 1397dd(h)) (as so added) is further 
amended--
            (1) in paragraph (1)(B), by striking ``paragraph (4)(B)'' 
        and inserting ``paragraph (5)(B)''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``paragraph 
                (5)(B)'' and inserting ``paragraph (6)(B)''; and
                    (B) in subparagraph (B), by striking ``paragraph 
                (4)(B)'' and inserting ``paragraph (5)(B)''.
Output: Amends title XXI (State Children's Health Insurance) (SCHIP) of the Social Security Act to require the Secretary of Health and Human Services to apply specified rules for an additional redistribution of amounts from unexpended FY2005-FY2006 allotments to address funding shortfalls in SCHIP for FY2007.