President Bush told lawmakers Oct. 30 he would not sign a reauthorization of the State Children’s Health Insurance Program with a tobacco tax increase, further widening the gulf on SCHIP between the president and Democratic and Republican SCHIP bill supporters.

The last two versions of the $60 billion reauthorization measure would raise $35 billion by increasing federal cigarette taxes by 61 cents, to $1. The Senate adopted the latest SCHIP measure 64-30 on Nov. 1, one week after the House passed it 265-142. The bill, like its predecessor, faces a presidential veto, despite revisions that would limit SCHIP eligibility to 300% of the federal poverty level and phase out coverage of adults in one year instead of two. SCHIP funding will run out on Nov. 16 unless new legislation is passed. At press time, House and Senate lawmakers were negotiating on a new SCHIP bill in an attempt to reach a veto-proof two-thirds majority in both chambers.