The President's budget includes sound improvements to Medicaid and the Children's Health Insurance Program (CHIP), including: Three years of full federal financing for all Medicaid expansion states. The President proposes to have the federal government pay the entire cost of health reform's Medicaid expansion for the first three years -- whether states have already expanded or will in the future. Under current law, the federal government covers 100 percent of expansion costs between 2014 and 2016 and at least 90 percent thereafter, so states expanding after January 1, 2014 get less than three years of 100-percent federal funding -- and states expanding next year or later won't get any. The President's proposal would treat all states equitably.