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Title 42 — The Public Health and WelfareRelease 119-73not60

§1318 Alternative Federal Payment with Respect to Public Assistance Expenditures

Title 42 › Chapter 7— SOCIAL SECURITY › Subchapter XI— GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE SIMPLIFICATION › Part A— General Provisions › § 1318

Last updated Apr 5, 2026|Official source

Summary

If a State has an approved plan under subchapter XIX for any calendar quarter, the State can choose to have the federal payments it gets for that quarter and for each later quarter in the same fiscal year (the four calendar quarters ending with September 30) figured by using the Federal medical assistance percentage from section 1396d. That percentage replaces the different percentages in sections 303(a), 1203(a), 1353(a), and 1383(a). The percentage is applied to the spending under the State plans covered by subchapters I, X, XIV, and XVI that would count toward those payments, but any per-person dollar limits in those sections are ignored. For Puerto Rico, the Virgin Islands, and Guam, the Federal medical assistance percentage is 75%.

Full Legal Text

Title 42, §1318

The Public Health and Welfare — Source: USLM XML via OLRC

In the case of any State which has in effect a plan approved under subchapter XIX for any calendar quarter, the total of the payments to which such State is entitled for such quarter, and for each succeeding quarter in the same fiscal year (which for purposes of this section means the 4 calendar quarters ending with September 30), under paragraphs (1) and (2) of section 303(a),11 See References in Text note below. 1203(a),1 1353(a),1 and 1383(a) 1 of this title shall, at the option of the State, be determined by application of the Federal medical assistance percentage (as defined in section 1396d of this title), instead of the percentages provided under each such section, to the expenditures under its State plans approved under subchapters I, X, XIV, and XVI, which would be included in determining the amounts of the Federal payments to which such State is entitled under such sections, but without regard to any maximum on the dollar amounts per recipient which may be counted under such sections. For purposes of the preceding sentence, the term “Federal medical assistance percentage” shall, in the case of Puerto Rico, the Virgin Islands, and Guam, mean 75 per centum.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Paragraph (1) of section 303(a), 1203(a), and 1353(a) of this title, referred to in text, were repealed by Pub. L. 97–35, title XXI, § 2184(a)(4)(A), (c)(2)(A), Aug. 13, 1981, 95 Stat. 816, 817. section 1383(a) of this title, referred to in text, is a reference to section 1383(a) of this title as it existed prior to the general revision of subchapter XVI of this chapter by Pub. L. 92–603, title III, § 301, Oct. 30, 1972, 86 Stat. 1465, eff. Jan. 1, 1974. The prior section (which is set out as a note under section 1383 of this title) continues in effect for Puerto Rico, Guam, and the Virgin Islands.

Amendments

1996—Pub. L. 104–193 struck out “603(a),” before “1203(a),”, “and part A of subchapter IV,” after “XVI,”, and “, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of subchapter IV” after “the Virgin Islands, and Guam, mean 75 per centum”. 1988—Pub. L. 100–485 inserted before period at end “, and shall, in the case of American Samoa, mean 75 per centum with respect to part A of subchapter IV”. 1980—Pub. L. 96–272 struck out “when applied to quarters in the fiscal year ending September 30, 1979” after “means 75 per centum”. 1978—Pub. L. 95–600, inserted provision relating to definition of “Federal medical assistance percentage” in the case of Puerto Rico, the Virgin Islands, and Guam. 1976—Pub. L. 94–273 substituted “September” for “June”. 1968—Pub. L. 90–248 struck out “IV,” after “I,” and inserted “and part A of subchapter IV,” after “XVI”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1996 AmendmentAmendment by Pub. L. 104–193 effective July 1, 1997, with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see section 116 of Pub. L. 104–193, set out as an

Effective Date

note under section 601 of this title.

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–485 effective Oct. 1, 1988, see section 601(d) of Pub. L. 100–485, set out as an Effective and Termination Dates of 1988 Amendment note under section 1301 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 1318

Title 42 — The Public Health and Welfare

Last Updated

Apr 5, 2026

Release point: 119-73not60