The U.S. Department of Health and Human Services is offering up to $40 million in grants to provide increased insurance coverage to uninsured children.

HHS Secretary Kathleen Sebelius, speaking in Colorado July 6, said the grants are targeting families whose children qualify but are not yet enrolled in state Medicaid and Children’s Health Insurance Programs (CHIP).

More than 30 million children are enrolled in Medicaid and more than 7 million are enrolled in the CHIP program, which has been the primary vehicle for states to lessen their ranks of uninsured children.

The funding is part of the new Children’s Health Insurance Program Reauthorization Act (CHIPRA) that President Barack Obama signed as one of his first acts upon assuming office.

“We know there are millions of children who are eligible for coverage but don’t utilize their state health care programs,” Sebelius said in a statement.  “These grants will help community organizations, tribal organizations, as well as states and local governments reach out to children and families to ensure more children get the health care they need and deserve.”

The solicitation Sebelius announced is the first cycle of outreach funding under CHIPRA. The new law provides a total of $100 million for outreach campaigns aimed at reducing the number of low-income, uninsured children.

Administered through the Centers for Medicare & Medicaid Services, the grants to states and organizations will total $80 million. The remaining funds going to other outreach efforts

“There are still millions of uninsured, low-income children who are not enrolled in these programs even though they are eligible,” said Cindy Mann, the director of the CMS Center for Medicaid and State Operations, in a statement. “We are looking forward to innovative grant proposals ranging from grass roots efforts to reach eligible but uninsured children to technology-driven initiatives to modernize and streamline enrollment systems.”