A bill that would increase the federal tobacco tax by 61 cents per pack to pay for healthcare coverage for low-income children was passed by the Senate Finance Committee, but President Bush said he would veto the measure, the Winston-Salem Journal reported July 19.

The committee approved the bill on a bipartisan 17-4 vote, saying the $35 billion expected to be generated by the tax increase would help to roughly double funding for the State Children's Health Insurance Program (SCHIP). But Bush, who has proposed adding $5 billion to the plan, said he viewed the Senate bill as "the beginning salvo of the encroachment of the federal government on the healthcare system."

Sen. Debbie Stabenow (D-Mich.), said, "Everything we do here is about values and priorities. I don't think $7 billion a year to make sure parents, most of whom are working, have the opportunity for their children to go to the doctor is too much."

A group of Bush's fellow Republicans implored the president to support the bill. "To be fair, it does not make any of us Republicans comfortable to face a veto threat from our president," said Sen. Orrin Hatch (R-Utah). "This bill goes a long way to doing what I think is right for our children."