Because I've seen some confusion over this point, the fight over S-CHIP funding is not a fight over a new program, or even substantial changes to an old program. S-CHIP is currently extended to about 5 million fewer uninsured children than qualify for the program. The reason, basically, is that S-CHIP is administered by granting a fixed pot of money to states, who must then figure out how many kids they can insure. During bad financial times, they put down enrollment caps, create waiting lines, change eligibility rules, or just plain don't tell anyone about it. During good times, they increase outreach, take down the waiting lines, etc. But currently, the program isn't funded with anything near the amount of money it would require to fully cover the targeted population. So the states ensure that not all of the target population signs up, either by keeping the program's existence quiet or proactively limiting enrollment.
