President Bush Vetoes SCHIP Expansion Bill For The Second Time

President George W. Bush on December 12th vetoed for the second time legislation aimed at expanding the State Children's Health Insurance Program (SCHIP) by $35 billion over five years exclusively funded by increases in the Federal excise tax rates on tobacco products, saying "our nation's goal should be to move children who have no health insurance to private coverage, not to move children who already have private health insurance to government coverage." 

President Bush had vetoed the original SCHIP bill on October 3rd, arguing that the $35 billion expansion is too costly, took the program too far from its original intent to help the poor, and would be a step toward federalizing healthcare. The US House on October 18th sustained the presidential veto in a 273-156 vote. In a bid to win over more Republicans, US House Democrats on October 24th proposed a new version of the SCHIP bill that retained the amount of expansion and funding source, but tightened eligibility rules, generally barring coverage to illegal immigrants, childless adults and children of families with incomes exceeding three times the poverty level. However, the revised measure secured a veto-proof margin only in the Democrat-controlled Senate, while House Republicans held enough of their members together to sustain a presidential veto. With only a few days left in the congressional session, it is not clear if Congress would schedule a veto override vote, which is expected to almost certainly fail (Politico.com 12/12).

Extension Expected to be Approved by Congress

As we are in constant contact with our federal lobbyists who have been closely monitoring this SCHIP issue, popular consensus, both public, from the media, and more private channels within the "Beltway," holds that a veto override vote will fail for there remains the lack of support to muster a two-thirds vote in the House of Representatives to override the president's veto.

At this point, as the current congressional extension (following the first failed veto override vote)  for SCHIP program expires December 14th, there will most likely be another extension to fund the program into 2008. 

As this issue continues becoming more contentious on Capitol Hill, we urge all of you to remain calm, but vigilant. At this time, it is not necessary to contact your Congressmen and urge them to oppose a veto override attempt, as there is not enough support to approve such a legislative attempt.

The current Congressional session adjourns Dec. 22.