WASHINGTON - Forty states may have to forfeit millions in federal funds, allocated for the healthcare of low-income children, because they failed to spend the money in the allotted time. $4.2 billion in federal dollars, part of the Children's Health Insurance Program, has not been spent. Unless it was spent by Sept. 30, these funds will be redistributed to the only 10 states that used their full allotments.
California and Texas, which have 29% of the nation's 11 million uninsured children, account for more than half of the unspent money. States that have successfully taken advantage of the program include New York, Alaska, Massachusetts, Missouri, and Pennsylvania.
The Children's Health Insurance Program was designed to help children in families with too much income to qualify for Medicaid and too little income to be able to afford private insurance.