# § 1397aa. Purpose; State child health plans
**(a)** **Purpose** Except with respect to the rural health transformation program established in section 1397ee(h) of this title, the purpose of this subchapter is to provide funds to States to enable them to initiate and expand the provision of child health assistance to uninsured, low-income children in an effective and efficient manner that is coordinated with other sources of health benefits coverage for children. Such assistance shall be provided primarily for obtaining health benefits coverage through—
or a combination of both.
**(1)** obtaining coverage that meets the requirements of section 1397cc of this title, or
**(2)** providing benefits under the State’s medicaid plan under subchapter XIX,
**(b)** **State child health plan required** A State is not eligible for payment under subsection (a) or (g) of section 1397ee of this title unless the State has submitted to the Secretary under section 1397ff of this title a plan that—
**(1)** sets forth how the State intends to use the funds provided under this subchapter to provide child health assistance to needy children consistent with the provisions of this subchapter, and
**(2)** has been approved under section 1397ff of this title.
**(c)** **State entitlement** section 1397dd of this title
This subchapter constitutes budget authority in advance of appropriations Acts and represents the obligation of the Federal Government to provide for the payment to States of amounts provided under .
**(d)** **Effective date** section 1397ee of this titleOctober 1, 1997
No State is eligible for payments under for child health assistance for coverage provided for periods beginning before .
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**Source Credit**: (Aug. 14, 1935, ch. 531, title XXI, § 2101, as added Pub. L. 105–33, title IV, § 4901(a), Aug. 5, 1997, 111 Stat. 552; amended Pub. L. 119–21, title VII, § 71401(b)(1), July 4, 2025, 139 Stat. 331.)
## Editorial Notes
### Amendments
2025—Subsec. (a). , substituted “Except with respect to the rural health transformation program established in , the purpose” for “The purpose” in introductory provisions.
Subsec. (b). , inserted “subsection (a) or (g) of” before “” in introductory provisions.
## Statutory Notes and Related Subsidiaries
### Implementation
> “The Administrator of the Centers for Medicare & Medicaid Services shall implement this section, including the amendments made by this section [amending this section and sections 1397ee and 1397ff of this title], by program instruction or other forms of program guidance.”
, , , provided that:
### References to SCHIP and State Children’s Health Insurance Program
, , , 1501A–402, which provided that, in official communications concerning this subchapter, the terms “SCHIP” and “State children’s health insurance program” were to be used instead of “CHIP” and “children’s health insurance program”, respectively, was repealed by , , .