ALBANY, N.Y., October 1 – Eight states, including New York, have threatened to file a lawsuit against the Bush Administration for violating provisions of the federal State Childrens Health Insurance Program (SCHIP), which is designed to provide affordable health coverage for children in families that cannot afford to buy private health insurance.

New York Governor Eliot Spitzer announced the bi-partisan, multi-state lawsuit, which was triggered in August when the federal Center for Medicare and Medicaid Services issued new rules that set certain guidelines for states wishing to expand their childrens health insurance programs to households above 200 percent of the federal poverty level " a decision that Spitzer and other governors have criticized as arbitrary. States participating in the litigation, either as plaintiffs or by filing supportive briefs, include Illinois, Maryland, New Jersey, Washington, Arizona, California, and New Hampshire.

The SCHIP reauthorization bill, which was passed overwhelmingly by both houses of Congress last week, would roll back the new rules, but President George W. Bush has recently vetoed the legislation.

Prior to the veto, but after the President had signaled his intention to oppose the bill, Spitzer declared, With the health of our nations children hanging in the balance, President Bush is preparing to veto a bipartisan compromise that Congress has forged to ensure that all children receive quality health care, he said. I join with governors from states across the country in urging the President to do the right thing by signing this important legislation. If this bill does not become law, we will proceed with our lawsuit. Our kids deserve nothing else.

The multi-state lawsuit will specifically challenge the rules that, according to Spitzer, conflict with the SCHIP statute and were issued without an opportunity for public comment as required by the federal Administrative Procedures Act. The states are seeking a court ruling declaring those rules to be unlawful and prohibiting the federal government from applying the rules when reviewing individual state plans submitted under SCHIP, Spitzer said.

New Jersey Governor Jon Corzine, in support of the brief, said, SCHIP is an unqualified success in New Jersey and in states across the nation, and the Bush Administrations determination to pursue a course of action that will harm our childrens health is incomprehensible, This same administration previously signed off on our decision to cover the 10,000 New Jersey kids they are now seeking to kick out of SCHIP, and the lawsuit we filed today demonstrates that we will simply not let than happen.