Bush vetoes popular bill on kids' health care

By Caren Bohan

WASHINGTON (Reuters) - President George W. Bush on Wednesday vetoed a measure to expand a popular children's health care program, launching the first in a series of major battles with Democrats over domestic spending.

The legislation had bipartisan support in the U.S. Congress and the veto risks angering many Republicans who fear the issue could hurt their party in the 2008 elections.

Democrats called the veto "cruel" and "heartless." The measure would have provided an extra $35 billion over five years for a health program for low-income children. Cigarette taxes would have been raised to fund the expansion from the current $25 billion level.

Supporters of the bill said the extra money would have helped provide health coverage for 10 million children.

While defending his veto, Bush offered to negotiate with Democrats on the program's funding. He had initially proposed a $5 billion increase in funding over five years, a rise that critics said would be insufficient to cover the children currently in the program because of rising health care costs.

"If they need a little more money in the bill to help us meet the objective of getting help for poorer children, I'm more than willing to sit down with the leaders and find a way to do so," Bush told a business forum in Lancaster, Pennsylvania.

He said the bill's funding level would have expanded the health program beyond its original intent and taken a step toward government-run health care.

"The policies of the government ought to be to help people find private insurance, not federal coverage," Bush said.