To amend title XI of the Social Security Act to require that State applications for State plan waivers under the Medicaid program be approved only if such applications are budget neutral, and for other purposes.

Amends title XI of the Social Security Act (SSAct) to require the Secretary of Health and Human Services, as a condition of approval of a demonstration project undertaken to promote the objectives of SSAct title XIX (Medicaid) in a state, to require that the project be budget neutral.