; and (2) by adding at the end the following new subparagraph: (I) For a violation of any requirement described in subparagraph (A), including a violation of the requirements of section 1932, as applicable under clause (xii) of such subparagraph and paragraph (89) of section 1902(a), rather than disallowing the full amount of a payment under this title to a State for expenditures incurred by the State as described in subparagraph (A), the Secretary may defer or disallow a portion of a payment to the State. In determining the amount deferred or disallowed under this subparagraph, the Secretary may consider factors such as the degree, duration, and recurrence of noncompliance. A State may receive a reconsideration of a decision by the Secretary under this subparagraph to disallow payment in the manner described in section 1116(e). . (c) Effective date The amendments made by this section shall take effect on the date that is 2 years after the date of enactment of this section and shall apply to contracts for rating periods beginning on or after such date. 306. Medicaid and CHIP audits (a) Regular audits Beginning with fiscal year 2025, the Secretary of Health and Human Services (referred to in this section as the Secretary ) shall audit State Medicaid programs and State Children's Health Insurance Programs for purposes of assessing State enforcement of the requirements relating to parity in mental health and substance use disorder benefits (including with respect to compliance with such parity requirements in the case of any mental health or substance use disorder benefits that are separately managed or financed under a carve-out model) applicable under subsections (a)(88) and (uu) of section 1902 of the Social Security Act ( 42 U.S.C. 1396a ) (as added by section 303(a), section 1932(b)(8) of such Act ( 42 U.S.C. 1396u–2(b)(8) ), section 1937(b)(6) of such Act ( 42 U.S.C. 1396u–7(b)(6) ), and section 2103(c)(7) of such Act ( 42 U.S.C. 1397cc(c)(7) ), and related regulations. (b) Rotational procedure