Washington, DC - Congressman Ed Towns (D-Brooklyn) is pleased to announce that New York will receive nearly $1 billion in additional funding for children's health coverage under legislation passed both the House and Senate prior to the August recess.   As a senior member of the House Committee on Energy and Commerce, where this bill originated, Towns says it was important for Congress to pass this legislation to strengthen the State Children's Health Insurance Program (SCHIP).

"This action alone will prevent 360,000 children nationwide from losing coverage between now and Fiscal Year 2007 and will provide New York State with nearly $1 billion in additional funding," Towns said.  "Americans are already suffering in the current economic climate. In this gloomy environment, it is critical that programs such as SCHIP, which serve as a crucial safety net for the Americans most affected by the current economy, be preserved."

If not for this legislation, about $2.7 billion SCHIP funds would have been returned to the Federal treasury.  This legislation ensures that those expiring funds will go to the states for their intended purpose ? health coverage for children. 

"New data released yesterday shows that between 1999 and 2002 the number of uninsured children decreased by 20% and most of that was due to programs like SCHIP," Towns said.  "Now more than ever, our support of SCHIP will make a critical difference in the health of our children.  As a member of the House Energy and Commerce Committee, I worked on the initial creation of this program and I am pleased that Congress has ensured the necessary federal funding for states,  like New York, that want provide health insurance for children through SCHIP."

According to the Center on Budget and Policy Priorities, without the measures this bill proposes, New York would lose to the Federal treasury roughly $550 million in unspent 1998-1999 funds. Additionally, the bill would give New York an extra $400 million in funds redistributed from other states that, unlike New York, do not use all of their SCHIP allotment funds.

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