SCHIP Expansion for Kids in Need Act of 2009 - Amends title XXI (State Children's Health Insurance Program) (SCHIP) to require states to provide SCHIP priority to children in families with gross income below 200% of the federal poverty level.
Declares that no state child health plan shall be considered approved for a fiscal year unless the state has developed and submitted to the Secretary of Health and Human Services a plan to assure that all qualified low-income children are covered by creditable health coverage, such a plan has been approved, and the state implements it beginning with FY2010.
Declares that no payment to a state that increases its state child health plan income eligibility level above the one in effect as of the enactment of this Act shall be made for any amount expended for an individual whose family income exceeds the unincreased income eligibility level unless no more than 10% percent of qualified low-income children residing in the state are still not covered under creditable health coverage.