Children's Health Protection and Improvement Act of 2004

Children's Health Protection and Improvement Act of 2004 - Amends title XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act (SSA) to revise the extended availability through FY 2004 of SCHIP allotments for FY 1998 through 2001.

Specifies formulae for amounts to be used in computing redistributions for FY 2003, 2003, and 2004. Provides for reallocation of 70 percent of the expiring FY 1998, 1999, and 2000 funds to States that have fully expended their annual allotments. Extends the availability of the remaining 30 percent of such expiring funds with the States that currently have them.

Permits 50 percent of the total amount of a State's unexpended FY 2002 SCHIP allotments to remain available through FY 2006. Permits 50 percent of the total amount of a State's unexpended FY 2003 and 2004 SCHIP allotments to remain available through the end of FY 2007. Requires redistribution of the other 50 percent of such funds to States that have fully spent their allotments during the three-year period they were available.

Requires a second redistribution according to the same 70-30 formula of any retained or redistributed funds still unexpended at the end of the two-year extention or redistribution.

Provides for continued authority for qualifying States to use certain funds for Medicaid expenditures.