Bush vetoes children's insurance plan again

WASHINGTON — For the second time in three months, President Bush on Wednesday vetoed legislation that would have expanded the State Children's Health Insurance, or SCHIP, program by $35 billion over five years and would have boosted its enrollment to about 10 million children.

Bush cited the same reasons that led him to veto a version of the bill Oct. 3: It raised cigarette taxes and provided coverage for children of middle-class families instead of focusing on the working poor.

Democrats and some Republicans had argued that the second version addressed Bush's major concern by capping eligibility at 300 percent of the federal poverty line, slightly more than $60,000 for a family of four. Backers of the legislation could not override Bush's first veto, and it is unclear whether they will try to override the second.

The fate of the $5 billion-a-year program remains undecided, but Congress is expected to pass a temporary extension that would fund the program through much of next year.

Democrats agree to spending limit

In a bid to end a months-long feud with the White House, congressional Democratic leaders on Wednesday agreed not to exceed President Bush's spending limit.

Democrats instead were considering funding their priorities at the expense of some of the president's initiatives. Their decision to trim spending by $11 billion to meet Bush's $933 billion limit could clear the way for Congress to complete work on an omnibus spending bill by next week.

The action highlighted restraints on Democrats, who have narrow majorities in the House and Senate and face a Republican president steadfast in his threat to wield his veto. The Senate today is expected to approve an energy bill, but only after removing key provisions opposed by Bush.

The bill would roll 11 of the 12 annual spending bills into one package, funding all government agencies except the Pentagon.

House Dems try again with tax bill

Confronting the Senate and White House, House Democrats for a second time passed a tax cut for 21 million people, going after companies and hedge-fund managers that shelter money offshore. The vote Wednesday was a near party-line 226-193.

The White House responded with a veto threat, and the Senate's top Republican, Kentucky Sen. Mitch McConnell, said the House approach to fixing the alternative minimum tax (AMT) was unacceptable.

The House last month passed legislation providing one-year relief for about 21 million people facing an AMT bill averaging about $2,000. But Senate Republicans last week blocked consideration of the House bill.

The impasse increases the possibility the tax will affect 25 million people in 2007, compared with 4 million in 2006.

Also

The Senate voted late Wednesday to extend the retirement age for commercial pilots to 65, sending the measure to the president's desk.

Seattle Times news services