House Committees Work on SCHIP Expansion

Following action in the Senate last week, the House Ways and Means Committee approved a tax increase on tobacco yesterday to pay for the expansion of a State Children’s Health Insurance Program (SCHIP). The Committee voted 24-17 to approve H.R. 3162, which would reauthorize and expand SCHIP, due to expire on Sept. 30. The House Energy and Commerce Committee held a separate markup on other elements of the legislation the same day, though no votes were recorded. Republicans attempted to bog down both markups with procedural maneuvers as a way to protest the majority’s legislation.


The bill proposes a $50 billion increase for SCHIP, levying a 39-cent-per-pack tax on "small cigarettes," in order to pay for the expansion. Republicans offered an amendment that would cut out the tax increase, but it was defeated 16-23. Democrats later acknowledged that the bill would have to be altered before it is sent to the floor in order to adhere to budget-neutral "pay-as-you-go" rules. The preliminary Congressional Budget Office analysis found the Ways and Means bill to be short about $76 billion in offsets.
The Senate Finance Committee passed a SCHIP expansion last week, and Senate Majority Leader Harry Reid (D-NV) has stated that the bill will be on the Senate floor on Monday, giving the Senate time to pass the measure before the month-long August recess. The Senate bill expands the program by $35 billion over five years, far short of the $50 billion proposed in the House. The Finance Committee’s proposal faces contentious debate on the Senate floor. More liberal members of the majority feel the expansion is too mild. Sen. John Kerry (D-MA) has pledged to bring an amendment to the floor that will increase the expansion to the $50 billion agreed to in the budget resolution. On the other side of the spectrum, fiscal conservatives feel the expansion is too extreme.
Even if the House were to bring H.R. 3162 to the floor next week, a conference between the two versions would not take place until Congress returns in September. President Bush, who proposed only a $5 billion increase, has already promised to veto the bill, unless Congress draws back the funding increase. Democratic leaders may have to spend the August recess negotiating the expansion, working to make sure they have the votes, not only to pass the bill, but to override the threatened veto. Between SCHIP and appropriations, this recess could prove to be a very busy vacation for members of Congress.
Resources:
Autumn Campbell, “House GOP Lawmakers Stall Work on Children’s Health Insurance Plan,” Congress Now, July 26, 2007.
Author: SAS