The U.S. Department of Health and Human Services (HHS) announced $40 million in grants on August 18 to state agencies, school-based organizations, community health centers, and non-profit groups to promote outreach and enrollment of children in Medicaid and the Children’s Health Insurance Program (CHIP). The grants are authorized by the Children’s Health Insurance Program Reauthorization Act of 2009 (CHIPRA) and include $20 million for technology facilitating enrollment, $10 million for outreach, $5 million for using schools in outreach and enrollment activities, and $5 million for other enrollment and retention initiatives. HHS and the U.S. Department of Education also sent a letter to all Governors on August 12 on the key role of schools in helping to reach out to 4.3 million children without health coverage who are already eligible to enroll under current Medicaid and CHIP rules. The August 12 letter encourages states and school systems to expand use of innovative methods to facilitate Medicaid and CHIP enrollment, such as use of school lunch program eligibility information. In addition, the Centers for Medicare and Medicaid Services (CMS), the Administration for Children and Families (ACF), and the Food and Nutrition Service (FNS) sent a letter on August 10 to all state health and human services directors, Medicaid and CHIP directors, and state health insurance Exchange grantees, promoting the development of interoperable eligibility information technology. The August 10 letter offers an exception to OMB A-87 cost allocation requirements to allow human services programs such as Temporary Assistance for Needy Families (TANF), the Child Care and Development Fund (CCDF), and the Supplemental Nutrition Assistance Program (SNAP) to use eligibility systems designed for Medicaid, CHIP, and the Exchanges under the Affordable Care Act (ACA) without sharing in the common IT systems development costs. That exception is available to states through December 31, 2015.