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Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.
This Act may be cited as the ``CHIP School Behavioral Health Incentive Act''. SEC. 2. DISREGARD OF STATE EXPENDITURES ON HEALTH SERVICES INITIATIVES TO INCREASE ACCESS TO BEHAVIORAL HEALTH SERVICES FOR CHILDREN IN SCHOOLS FOR PURPOSES OF THE CHIP REIMBURSEMENT LIMITATION ON EXPENDITURES NOT USED FOR MEDICAID OR HEALTH INSURANCE ASSISTANCE.
Section 2105(c)(2) of the Social Security Act (42 U.S.C. 1397ee(c)(2)) is amended by adding at the end the following new subparagraph:
``(D) Disregard of expenditures for health services initiative for behavioral health services in schools.--
``(i) In general.--Beginning with the first fiscal year that begins after the date of enactment of this subparagraph (or, if earlier, the fiscal year in which guidance issued by the Secretary to implement this subparagraph takes effect), the amount of any expenditures described in clause (ii) for a fiscal year shall be disregarded for purposes of applying the limitation under subparagraph (A) for such fiscal year, except that in no case shall the amount of payment that may be made under subsection (a) for a fiscal year for expenditures subject to such limitation (including expenditures described in clause (ii)) exceed 15 percent.
``(ii) Expenditures described.--Expenditures described in this clause are expenditures by a State to implement or operate a health services initiative under the State child health plan under this title that would improve the health of children by increasing access to behavioral health services in schools.''.
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