Page 244

139 STAT. 314 PUBLIC LAW 119–21—JULY 4, 2025 ‘‘(II) based on the information provided pursu- ant to subparagraph (D), failed to make continued good faith efforts toward compliance with the requirements of this subsection. ‘‘(D) REPORTING REQUIREMENTS.—A State granted an exemption under subparagraph (A) shall submit to the Secretary— ‘‘(i) quarterly progress reports on the State’s status in achieving the milestones toward full compliance described in subparagraph (B)(iii); and ‘‘(ii) information on specific risks or newly identi- fied barriers or challenges to full compliance, including the State’s plan to mitigate such risks, barriers, or challenges.’’. (b) CONFORMING AMENDMENT.—Section 1902(a)(10)(A)(i)(VIII) of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(i)(VIII)) is amended by striking ‘‘subject to subsection (k)’’ and inserting ‘‘sub- ject to subsections (k) and (xx)’’. (c) PROHIBITING CONFLICTS OF INTEREST.—A State shall not use a Medicaid managed care entity or other specified entity (as such terms are defined in section 1903(m)(9)(D)), or other contractor to determine beneficiary compliance under such section unless the contractor has no direct or indirect financial relationship with any Medicaid managed care entity or other specified entity that is responsible for providing or arranging for coverage of medical assist- ance for individuals enrolled with the entity pursuant to a contract with such State. (d) INTERIM FINAL RULEMAKING.—Not later than June 1, 2026, the Secretary of Health and Human Services shall promulgate an interim final rule for purposes of implementing the provisions of, and the amendments made by, this section. Any action taken to implement the provisions of, and the amendments made by, this section shall not be subject to the provisions of section 553 of title 5, United States Code. (e) DEVELOPMENT OF GOVERNMENT EFFICIENCY GRANTS TO STATES.— (1) IN GENERAL.—In order for States to establish systems necessary to carry out the provisions of, and amendments made by, this section or other sections of this chapter that pertain to conducting eligibility determinations or redeterminations, the Secretary of Health and Human Services shall— (A) out of amounts appropriated under paragraph (3)(A), award to each State a grant equal to the amount specified in paragraph (2) for such State; and (B) out of amounts appropriated under paragraph (3)(B), distribute an equal amount among such States. (2) AMOUNT SPECIFIED.—For purposes of paragraph (1)(A), the amount specified in this paragraph is an amount that bears the same ratio to the amount appropriated under para- graph (3)(A) as the number of applicable individuals (as defined in section 1902(xx) of the Social Security Act, as added by subsection (a)) residing in such State bears to the total number of such individuals residing in all States, as of March 31, 2025. (3) FUNDING.—There are appropriated, out of any monies in the Treasury not otherwise appropriated— Effective date. 42 USC 1396a note. Deadline. 42 USC 1396a note. 42 USC 1396b note.