Fiscal Accountability, Integrity, and Responsibility in SCHIP Act of 2006, or FAIR-SCHIP Act of 2006 - Amends title XXI (State Children's Health Insurance) (SCHIP) to set forth special rules to fund the FY2007 SCHIP allotment shortfalls, including through a redistribution of certain unused FY2005 allotments.
Extends authority for qualifying states to use certain funds for Medicaid (SSA title XIX) expenditures.