at the end the following new sentence: No amounts paid to a State under this paragraph may be used to offset the cost of health insurance coverage (including through premium or cost sharing reductions) or to provide any other benefit with respect to an individual who is not a citizen or national of the United States or an alien lawfully present in the United States. Any alien who is lawfully present solely because such individual was granted deferred action pursuant to the memorandum of the Department of Homeland Security entitled Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children issued on June 15, 2012, shall not be treated as lawfully present for purposes of the preceding sentence. . (c) Medicaid and CHIP (1) Exclusion from definition of qualified alien under PRWORA Section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1641 ) is amended by adding at the end the following new subsection: (d) Treatment of certain deferred action under Medicaid and CHIP For purposes of this title, the term qualified alien shall not include any alien who is lawfully present solely because such individual was granted deferred action pursuant to the memorandum of the Department of Homeland Security entitled Exercising Prosecutorial Discretion with Respect to Individuals Who Came to the United States as Children issued on June 15, 2012, but only with respect to the designated Federal program defined in section 402(b)(3)(C) (relating to the Medicaid program) and the State Children's Health Insurance Program established under title XXI of the Social Security Act ( 42 U.S.C. 1397aa et seq. ). An individual granted deferred action pursuant to the memorandum described in the preceding sentence shall not be treated as lawfully present or lawfully residing for purposes of the designated Federal program defined in section 402(b)(3)(C) (relating to the Medicaid program) or the State Children's Health Insurance Program established under