To amend title XIX of the Social Security Act to increase by 10 percentage points the required State match for certain newly eligible individuals under the Medicaid program and to apply savings against sequestration reductions otherwise required, and for other purposes.

Amends title XIX (Medicaid) of the Social Security Act (SSA) to increase by 10% the required state matching funds for certain newly eligible individuals under the Medicaid program who, as of January 1, 2014, are under age 65, not pregnant, not entitled to or enrolled for benefits under SSA title XVIII (Medicare), and whose income does not exceed 133% of the poverty line for a family of the size involved.

Directs the Director of the Office of Management and Budget (OMB) to increase the discretionary spending limit under the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) for the security category by $20 billion for FY2014 and then to increase the security and nonsecurity categories for that fiscal year each by half of the remaining estimated reduction in new budget authority resulting from enactment of this Act.