Despite Veto Threat, Senate Finance Set to Expand Children’s Health Program

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Despite Veto Threat, Senate Finance Set to Expand Children’s Health Program

Senate Finance Committee leaders plan to go to markup Tuesday evening on a major expansion of the State Children’s Health Insurance Program, defying a White House veto threat.

The State Children’s Health Insurance Program reauthorization would cover children in households with incomes up to 300 percent of the federal poverty line and cover 3.3 million more uninsured children. The five-year, $35 billion agreement, which would be funded by a 61-cent-a-pack increase in the federal tax on cigarettes as well as increased taxes on other tobacco products, would continue coverage for the 6.6 million children now enrolled in the program, committee leaders said.

White House spokesman Tony Fratto said Saturday that senior administration advisers have recommended to President Bush that he veto the Senate package.

The House wants an even larger, $50 billion expansion of the program, which covers children in low-income families who do not qualify for Medicaid.

Senate Finance Committee Republicans Charles E. Grassley of Iowa and Orrin G. Hatch of Utah have urged Bush to withdraw the veto threat against the Senate version, saying a veto would open the door to Democrats attaching a more costly SCHIP package to must-pass legislation later this year.

The president sought only a $5 billion expansion of SCHIP.