WASHINGTON (MarketWatch) -- The House of Representatives failed on Thursday to override President Bush's veto of a proposal to expand funding for the State Children's Health Insurance Program by $35 billion, more than doubling the program.  The vote, 273-to-156 in favor of the override, missed the two-thirds of votes needed to override the veto.
 
The next step could be for Democrats and Republicans to compromise on a new funding level. Bush has said he's willing to sign a bill that includes a higher expansion than his own $5 billion proposal.
 
The current funding extension for SCHIP expires in mid-November.
Some have also suggested funding SCHIP until shortly before the 2008 election and then bringing up the controversial bill again, perhaps with some small changes, according to Stan Dorn, senior research associate with the Urban Institute.
 
Democrats need to consider whether they want to negotiate a compromise at all. "The alternative is to keep this dispute alive and try to use it to gain political advantages for the 2008 election," Dorn said.
Rep. John Dingell, D-Mich., chair of the Energy and Commerce Committee, said Thursday that the expanded SCHIP would have covered 10 million needy children.
 
"It provides funding for states to enroll millions of low-income children who are already eligible for benefits yet remain uninsured," he said. "Under current law, these boys and girls are entitled to their benefits. Continuing to not provide them with coverage is a travesty."