Oct. 6 (Bloomberg) -- President George W. Bush defended his decision to veto an expansion of a children's health insurance program, calling the proposal ``an incremental step'' toward government-controlled health care for everyone.

Bush this week vetoed reauthorization of the State Children's Health Insurance Plan, saying Congress proposed extending the program beyond its original purpose. Legislators voted to increase funding by $35 billion over five years, while the president is endorsing an increase of $5 billion.

``Millions of children would move out of private health insurance and onto a government program,'' under the congressional plan, Bush said in his weekly radio address today.

The national, largely state-run program known as Schip subsidizes health insurance for families that earn as much as twice the federal poverty level -- $41,000 for a family of four.

Bush is calling for states to increase their efforts to enroll more children below the designated income level instead of adding adults or children from families with higher incomes as some states have done.

``Congress's Schip plan is an incremental step toward their goal of government-run health care for every American,'' he said. ``Government-run health care would deprive Americans of the choice and competition that comes from the private market.''

House Speaker Nancy Pelosi, a California Democrat, and Senate Majority Leader Harry Reid of Nevada vowed that Congress would override the veto.

Joining Effort

Labor unions and advocacy groups, including MoveOn.org, said yesterday they are joining the effort to override the veto and expect to spend more than $1 million to persuade lawmakers to oppose Bush.

The campaign will include television advertising and phone calls to lawmakers to argue for expansion of the program, representatives of the groups said in a conference call with reporters yesterday.

The organizations are targeting members of the House, which approved the legislation last month without the two-thirds majority needed to override a veto. The Senate passed the measure with a veto-proof majority.

To contact the reporter on this story: Michelle West in Washington mwest15@bloomberg.net.

Last Updated: October 6, 2007 10:05 EDT