Eight states will back a lawsuit to stop the federal government from imposing new rules which they fear will force them to cut children from a health insurance program, New York Governor Eliot Spitzer said on Monday.

The State Children's Health Insurance Program, which relies heavily on federal funding, initially focused on poor children but governors increasingly have sought to add children from more moderate income families who also say they cannot afford to buy private insurance.

"The states are seeking a court ruling declaring those rules unlawful and prohibiting the federal government from applying the rules when reviewing individual plans," Spitzer said in a statement. He added that the Bush administration put out the rules without the required public comment period.

The lawsuit is not the only battle over the health plan. President George W. Bush has vowed to veto the reauthorization Congress enacted last week.

The Republican president says the bill, which will cost $35 billion over five years and be partly paid for with a 61-cent per pack cigarette tax hike, is a step toward nationalized healthcare.

In addition to New York, Illinois, Maryland, New Jersey, Washington, Arizona, California and New Hampshire will take part in the litigation, either "as plaintiffs or by filing supporting briefs," New York's Democratic governor said.

New Jersey estimates it may have to stop covering 10,000 children if the new rules go into force.

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