To prohibit the implementation of policies to prohibit States from providing quality health coverage to children in need under the State Children's Health Insurance Program (SCHIP).

Makes null and void the August 17, 2007, letter to State Health Officials from the Director of the Center for Medicaid and State Operations in the Centers for Medicare & Medicaid Services requiring states that have established or that expand the income eligibility level for children under title XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act above 250% of the federal poverty level to comply with new requirements as a condition of covering such children. Declares that such letter shall not be applied.

Prohibits the Secretary of Health and Human Services from: (1) promulgating or implementing any requirement, rule, or provision similar to any requirement in the August 17, 2007, letter; or (2) applying any such requirement to any state plan amendment or waiver expanding the income eligibility level for children under title XXI.