U.S. Sen. Charles Grassley criticized the Bush administration after the president threatened to veto bipartisan legislation that would expand health insurance for children, including those covered under the HAWK-I programin Iowa.

Grassley, the ranking Republican of the powerful Senate Finance Committee, said he has asked Bush to reconsider his position.

“Drawing lines in the sand at this stage isn’t constructive.  I’m working to negotiate a good compromise bill that will have broad bipartisan support,” said the five-term senator from Iowa. “I hope that after we get a deal, the president will review it and reconsider his position.

Bush said he was opposed to the bill in part because it allows families of four making $80,000 or less to enroll their children in the State Children’s Health Insurance Program. Bush also reportedly said it’s a “step toward federalization of health care.”

Grassley said in a press release that Bush is incorrect, and that current law is insufficient to meet the health care needs of low-income Iowa families.The president was referring to a SCHIP expansion proposed by the state of New York that was recently rejected by the Bush administration, Grassley said.

“The president and I agree on a lot of principles for increasing health insurance coverage.  I wish he’d engage Congress in a bill that he could sign instead of threatening a veto, and I hope he’ll still do that,” Grassley said.”A long-term extension of current law leaves a lot of kids without coverage, leaves adults covered in a program for children, and could lead to more waivers to cover adults and other things the White House and many Republicans oppose,” Grassley said. “I talked to thepresident this morning.  I pointed out that his limit of $5 billion over five years isn’t enough to accomplish what he said he wants to do, and that’s cover more kids.”

Grassley said he has shepherded the bill because of its importance to low-income Iowans and that Bush’s conclusions about raising the ceiling on qualified families is wrong. A waiver that allowed higher-income families to use SCHIP was taken out of the conference committee compromise forged between House and Senate negotiators, he said.

The House is scheduled to vote on the bill next week; the Senate will vote when the House approves the act. The Senate is expected to have the 68 votes necessary to override a veto, but the House is short of the number it needs.

Grassley said the $35 billion compromise package that he helped negotiate is $15 billion less than what many Democrats in Congress wanted. “The landmark bipartisantax-relief plans required some give on the part of congressional Democrats and Republicans and the White House. The same is true here.  The White House must recognize that bipartisan compromise is necessary with the SCHIP package being negotiated.”