1. Short title This Act may be cited as the Kickstarting Innovative Demonstrations Supporting Kids Health Act of 2023 or the KIDS Health Act of 2023 . 2. Establishment of whole child health models Section 1903 of the Social Security Act ( 42 U.S.C. 1396b ) is amended by adding at the end the following new subsection: (cc) Whole child health demonstration project (1) In general The Secretary, acting through the Deputy Administrator and Director of the Center for Medicaid and CHIP Services, shall conduct a demonstration project (referred to in this subsection as the demonstration project ) under which participating States shall design and implement whole child health models in 1 or more target communities in accordance with the requirements of this subsection. The requirements of section 1902(a)(1) (relating to statewideness) shall not apply to the demonstration project. (2) Design phase (A) Grants Not later than 12 months after the date of the enactment of this subsection, the Secretary shall award up to 15 grants to States that submit complete applications for such grants which meet the requirements of subparagraph (C). (B) Selection of grantees In awarding grants under this paragraph, the Secretary shall, to the extent possible, prioritize awarding grants to a geographically diverse selection of States and target communities of different sizes and with varying experience with value-based payment, including rural and urban communities. (C) Grant application A State shall include in an application for a grant awarded under this paragraph the following: (i) A description of each proposed target community in which the State proposes to implement a whole child health model. (ii) For each target community described in clause (i), a statement of the proposed objectives of the State in implementing a whole child health model in that community. (iii) Such other information as the Secretary may require. (D) Use of grant funds (i) In general A State awarded a grant under this paragraph shall use the grant funds to— (I)