President Bush vetoed the proposed expansion of a health insurance program that would have funded the State Children's Health Insurance program (SCHIP) by increasing tobacco taxes.

Following the veto on 3 October, this is the second time Bush has vetoed the bill. The president said the second, revised version of the bill still provided coverage for children of middle-class families instead of focusing on the working poor and that it will still encourage families to leave the private insurance market for the federally funded, state-run program.
Democrats and some Republicans had argued that the second version addressed Bush's major concern by capping eligibility at 300 percent of the federal poverty line – slightly more than US$ 60,000 for a family of four.
Lawmakers now negotiate a new five-year funding package that can win Bush's approval or draw a veto-proof majority in the House and Senate. The House voted 211 to 180 late Wednesday to put off a vote on overriding the president's veto until January 23. (pi)