President Barack Obama on Wednesday signed a bill that expands the State Children's Health Insurance Programme (SCHIP).

Obama signed the legislation at a White House ceremony just hours after the US House of Representatives voted 290-135 for the USD 32.8 (EUR 25.3 billion) billion expansion of the SCHIP, which was approved by the Senate last week. The bill aims to increase the number of children covered by SCHIP to 11 million from the 7.4 million currently enrolled.
The expansion is being paid for by raising the federal tax on cigarettes to USD 1 per pack from the current USD 0.39-per-pack tax. Taxes on cigars and other tobacco products will also rise.
"In a decent society, there are certain obligations that are not subject to trade-offs or negotiations – healthcare for our children is one of those obligations," Obama said.
President George W. Bush twice vetoed similar bills, arguing it would raise taxes and encourage businesses and families to drop private insurance and switch to the programme.
Congressman Tom Perriello criticised the increase in the excise tax rate on tobacco products. "The proposed tobacco tax, which amounts to a 156 per cent increase on cigarettes, is likely to have a dramatic impact on jobs and state revenues in every state in the country," he said adding that imposing such a tax would unfairly punish tobacco consumers. "We must all make sacrifices for our children; this means that every American must share the cost of the SCHIP program – not just consumers of tobacco products," he added. (pi)