Congress Passes Revised SCHIP/Tobacco Tax Legislation

Following the House vote on October 25, 2007, the Senate, on November 1, 2007, by a vote of 64 to 30, passed a revised Children’s Health Insurance Program Reauthorization Act of 2007 (HR 3963). The previous legislation (HR 976) was vetoed by President Bush on October 3, 2007. Although revisions were designed to attract a veto-proof majority to the legislation, neither the House nor the Senate approved the legislation by a veto-proof margin. Democratic leaders continued to work on compromises to win additional votes and indicated that the legislation might not be sent to the White House immediately. Additional funding for the insurance program as proposed is still paid for with a 61-cent increase in the federal tax on cigarettes as well as tax increases on other tobacco products. The Administration indicated that this legislation would also be vetoed.