WASHINGTON, March 23 (UPI) -- The U.S. Senate Friday backed $50 billion in additional spending on children's health insurance as part of a huge federal budget measure.
The move seeks to add the spending over five years to the State Children's Health Insurance Program, or SCHIP, in the Fiscal Year 2008 budget. Architects of the increase said it would double to 12 million the number of low-income children covered under the program.
The Senate also agreed to pay for most of the spending with a large nationwide increase in cigarette taxes.
An estimated six million American kids receive health coverage in the $7 billion-per-year program, which divides spending between Washington and states. But up to 6 million other children were left uncovered even though they qualify. Several states have moved to pare back eligibility.
President Bush's 2008 budget urged Congress to increase spending only slightly, while trimming benefits in an effort to hold back spending.
But lawmakers went the opposite direction Friday, passing a budget resolution including the SCHIP increase. Two Republican senators, Olympia Snowe and Susan Collins, both from Maine, voted with all Democrats present in backing the measure.
"Using surplus funds to keep kids healthy and to improve working families' finances is the right way to go," said Sen. Max Baucus, D-Mont., chair of the Finance Committee and the chief author of the resolution.
The large spending increase riled conservatives, who called it irresponsible.
"We need to help those who need a hand, but we're quickly getting to the point where we're asking too few to shoulder the burden for too many," said Sen. Sam Brownback, R-Kan., who is also a candidate for the 2008 GOP presidential nomination.
The plan doesn't actually increase spending, but merely budgets for it to be included when authorizing committees address SCHIP spending later this year. Baucus's resolution set aside $15 billion in increased spending and then authorized the use of a $35 billion fund.
Senate rules say Democrats must find savings elsewhere in federal spending to pay for the increase.
"Budget resolutions are expressions of assumptions and wishes and so forth. But it's not law," Baucus said. He said the Finance Committee would move later this year to close tax loopholes to pay for part of the bill.
"We will find a way, we'll get it done because this is so important," he said.
A large chunk of the money could come from a 61-cent hike in the cigarette tax approved in an amendment to the budget Friday. The increase would bring the federal excise tax to $1.00 per pack if it becomes law later this year.
Sen. Gordon Smith, R-Ore., who sponsored the increase, said it would provide $30 billion in revenue over five years, enough to pay for most of the SCHIP fund.
"I'm not big on tax increases but the nexus between using tobacco and public health care costs is so powerful ... that this is an appropriate joining together between that cost and this benefit," Smith said. "We've got to have real dollars, we can't be holding out false promise."
Also Friday the House approved $750 million in SCHIP funds in an Iraq war spending bill. The money was targeted to avoid funding shortfalls in 14 states.
