From what I heard Bush said he would veto the bill?
Yes, but since there is strong Republican support for this Bill, the 2/3 support needed to override a veto could happen.
Better explained from MSNBC:
The president has two objections to the measure, which has attracted strong Republican support on Capitol Hill sufficient perhaps to produce the two-thirds majority needed to override a presidential veto. Mr Bush objects to the fact that the bill would directly expand federal insurance rather than offering better incentives for families to take up private insurance the "thin end of the wedge", according to one official, at a time when Democratic presidential candidates are touting universal health insurance.
Mr Bush also objects to Congress's proposals for steep new taxes on tobacco, designed to help pay for the child healthcare expansion. These would include a $10 tax on cigars a massive increase and an increase on a packet of cigarettes from 39 cents to $1.
Since the insurance coverage would include children in families earning up to $80,000 and since it is disproportionately the poor who continue to smoke, Mr Bush has attacked the spending measure as regressive. "We object to measures that involve the poor subsidising the middle classes," says Mr Fratto. "It is also not self-sustaining, since smoking is a declining habit."
