| The plan, which passed with bipartisan support, | | | | original intent of the program, said White House |
| bolsters our national defense, allows additional | | | | Spokesman Tony Fratto. |
| funding for children's health care and increases | | | | 'It's clear that it will have the effect of |
| support for our veterans. | | | | encouraging many to drop private coverage _ |
| This blueprint for America's budget is an important | | | | purchased either through their employer or with |
| milestone because Congress was unable to pass a | | | | their own resources _ to go on the |
| budget in three of the last five years. This budget: | | | | government-subsidized program,' Fratto said. 'Tax |
| -- Improves children's health care by expanding | | | | increases are neither necessary nor advisable to |
| funds available to the State Children's Health | | | | appropriately fund SCHIP.' |
| Insurance Program. | | | | Congress is considering renewing the program |
| -- Invests in education by increasing funds for No | | | | before it expires Sept. 30. When Congress |
| Child Left Behind and Pell grants. | | | | approved the program in 1997, it provided $40 |
| -- Creates a deficit-neutral $20 billion reserve fund | | | | billion over 10 years. States use the money, along |
| to increase funding for energy, disaster assistance | | | | with their own dollars, to subsidize the cost of |
| and commodity support in the next Farm Bill. | | | | health insurance. The federal government covers |
| The Bush administration said Saturday that senior | | | | about 70 percent of the cost. |
| advisers would recommend the president veto | | | | 'Congress needs to deliver a bill the president can |
| Senate legislation that would substantially increase | | | | sign or they need to send him an extension so |
| funds for children's health insurance. | | | | that people don't worry about losing their current |
| The legislation calls for a 61-cent increase in the | | | | coverage,' Fratto said. 'It's important that |
| federal excise tax on a pack of cigarettes. The | | | | Congress understands the serious consequences |
| revenue would be used to subsidize health | | | | of delaying this or sending the president legislation |
| insurance for children and some adults with | | | | that he clearly cannot sign.' |
| incomes too high to qualify for Medicaid but not | | | | Fratto also called on the Senate Finance |
| enough to afford insurance on their own. | | | | Committee to consider the president's |
| Members of the Senate Finance Committee | | | | recommendation to tax employees on the health |
| brokered a bipartisan agreement Friday that | | | | insurance premiums paid by their employers. The |
| would add $35 billion to the program over the | | | | president would offset the increased taxes by |
| next five years. The Bush administration had | | | | giving taxpayers a deduction or credit. The result |
| instead recommend $5 billion. | | | | would be a tax cut for most families, but not for |
| The Senate legislation expands the State | | | | those with the highest-priced insurance plans. |
| Children's Health Insurance Program beyond the | | | | |