1. Short title This Act may be cited as the Medicaid Expansion Incentive Act of 2017 . 2. Redistribution of Federal Medicaid funds to States electing to meet ACA Medicaid expansion requirements from States not so electing (a) In general Section 1903 of the Social Security Act ( 42 U.S.C. 1396b ) is amended by adding at the end the following new subsection: (aa) Bonus for States electing To meet ACA Medicaid expansion requirements from funds made available by other States not electing To meet those requirements (1) In general In the case of a participating State for a fiscal year as determined under paragraph (2), in accordance with regulations of the Secretary, the State shall be entitled to an increase in payments under its State plan under this title in an amount determined under paragraph (3) of the Secretary’s estimate of the net reduction in Federal expenditures for nonparticipating States (including the amount of the additional Federal financial participation under this title that otherwise would have been paid to such States if they were participating States) during the fiscal year as a result of such States not applying the ACA Medicaid expansion requirements. (2) Notice regarding participation (A) In general Before the beginning of each fiscal year (beginning with fiscal year 2018) each of the 50 States and the District of Columbia is requested to inform the Secretary, in a form and manner specified by the Secretary and accompanied by such assurances regarding State plan amendments as the Secretary may specify, if the State will be applying its State plan under this title for such fiscal year in accordance with the requirements specified in the amendments made by paragraphs (1) and (2) of section 2001(a) of the Patient Protection and Affordable Care Act (in this subsection referred to as the ACA Medicaid expansion requirements ), which include requirements described in— (i) section 1902(a)(10)(A)(I)(VIII)