DARREN GERSH, CORRESPONDENT: The White House has threatened to veto a $50 billion expansion of state health insurance programs for children, calling the bill a step towards government-run health insurance. Both sides now seem to be welcoming a veto battle, setting up what budget watchdog Maya MacGuineas believes will be an ugly showdown this fall.

MAYA MACGUINEAS, PRESIDENT, COMMITTEE FOR A RESPONSIBLE FEDERAL BUDGET: The White House is going to look like they are being perhaps somewhat hypocritical when they spent so much money and now they are not letting Democrats do that. But Democrats really do risk the label of tax and spend that they`ve been trying so hard to shed. At this point, we don`t have any party that is clearly the fiscally responsible party.

GERSH: President Bush has issued the fewest vetoes of any president since Abraham Lincoln, a record he is almost sure to lose in the next year and a half...

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