Health and Human Services Secretary Michael Leavitt said the administration would be willing to support letting states cover health-care for children in families earning as much as 300% of the federal poverty level, or about $60,000 a year for a family of four, in SCHIP. The administration previously opposed permitting states to cover children above the 200% level.
"In order to find common ground, we are prepared to begin having a conversation about those between 200 and 300," Mr. Leavitt said.
The shift came just before House Democrats announced they would vote on Wednesday on a children's health bill, modified to address concerns raised by House Republicans. Democrats hope to sway enough Republicans to their side to override another expected veto by President Bush.
The shift narrows at least one major difference in the standoff between Mr. Bush and Congress over legislation reauthorizing and expanding the program that provides federal grants to states to help cover health care for low-income children. Mr. Bush vetoed legislation that would have added $35 billion over five years to SCHIP and expanded coverage to about four million more children. House Democrats attempted to override the veto last week, but failed to win the required two-thirds majority.