Congress sends kids health care to Bush

By Donna Smith

WASHINGTON (Reuters) - Setting up a veto showdown with President George W. Bush, the U.S. Congress on Thursday approved legislation to expand a popular children's health care program and pay for it with higher taxes on tobacco products.

The Senate solidly backed the bipartisan bill on a vote of 67-29. Bush has vowed to veto it and the Democratic-led Congress lacks the votes to override him. The U.S. House of Representatives earlier this week approved the bill on a 265-159 vote, falling well short of the two-thirds majority needed to override a presidential veto.

"The president will veto this bill because it directs scarce funding to higher incomes at the expense of poor families," White House spokeswoman Dana Perino said in a statement after the Senate vote.

The bill renews the children's health care program administered by the states and adds an extra $35 billion to the current $25 billion, five-year funding level. The program is set to expire on September 30, but is to be given temporary money through mid-November.

The measure aims to insure more children in low-income families that cannot afford health insurance but earn too much to qualify for the government's Medicaid program for the poor and disabled.

Thursday's vote sets the stage for Bush to wield his veto for the fourth time since moving into the White House in January 2001. The president twice rejected legislation on stem cell research. He also vetoed an Iraq war supplemental spending bill because it included timelines for withdrawing troops.

But Bush's threat to veto the children's health care bill has angered some of his own Republicans.

Sen. Pat Roberts of Kansas said Bush should "rethink" his veto threat and sign the bill.

"This bill and this debate has turned into a political showdown," Roberts said during the Senate debate. "Unfortunately, low-income children will be the ones who will ultimately pay the price."

TOBACCO TAX

The bill is an agreement between the Senate, which sought the $35 billion increase, and the House which wanted a $50 billion increase in funding over five years.

Backers said the bill would help provide health coverage for some 10 million children. It would raise taxes on tobacco products to pay for the additional coverage. Taxes on a pack of cigarettes would rise by 61 cents to $1 per pack.

The legislation also would provide dental coverage for the first time and allow states to cover pregnant women.

Opponents argued the legislation goes beyond the program's original intent to help low income children, agreeing with Bush that it was a step toward government-controlled health care.

"I think the children's health insurance program is another move toward universal coverage," said Senate Minority Leader Mitch McConnell, a Kentucky Republican. Bush and his Republican allies in Congress favor using tax breaks to help families afford health insurance.

Sponsors of the bill, including Sen. Charles Grassley, an Iowa Republican, have said White House claims that the legislation would allow families earning as much as $83,000 a year are not accurate. The legislation would not change current eligibility requirements and includes measures to discourage states from covering higher income families, they argue.