From a press release:

Current SCHIP Program to be Extended to 2009

Veto Override Attempt of Current SCHIP Legislation Unlikely

As you know, the President vetoed the current SCHIP legislation on December 12. The House leadership has scheduled a vote for January 23 to attempt to override that veto. It appears that the House will not be able to muster the 2/3 vote necessary to override the veto.

Late last week there was talk regarding a short term extension of the current SCHIP program through March 31, 2008. However, on December 17, negotiators agreed to extend the current SCHIP program through March 31, 2009 with a small increase in funding necessary for the states to maintain their current enrollment through that date. There will be no increase in tobacco taxes to fund that modest increase.

While it is always possible that Democrats will introduce another SCHIP bill in 2008 to force Republicans to vote on the issue, it now appears likely that the issue will be pushed into 2009.

The International Premium Cigar and Pipe Retailers is a not-for-profit trade association organized as the advocate for the independent retail tobacconist and recognized as the "Voice of Authority and Reason" on premium tobacco related issues.

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.