Kids face cutbacks in health coverage

From an article of the same title in USA Today by Richard Wolf:

A 10-year-old national program that has helped 6.6 million children get health insurance faces cutbacks here Sunday, and more states could follow unless Congress grants new funding. Georgia's PeachCare for Kids program, part of the national Children's Health Insurance Program (CHIP), will freeze enrollment because of a federal funding shortfall that threatens 13 other states. New Jersey, Iowa, Mississippi and other states say cuts may be required later this year. The program - which provides subsidized insurance for children whose families are not eligible for Medicaid - has helped trim the percentage of uninsured kids nationwide to 11.2% in 2005 from 15% in 1997. It is running out of money because of inflation, higher enrollment and program expansions.

Democrats in Congress want to add $745 million to a bill funding the Iraq war to take care of this year's shortfalls. Unless the federal government raises its $5 billion annual stake, however, 35 states could face shortfalls by 2012, and 1.5 million children could lose coverage. Advocates see the program as a precursor to universal coverage. Sen. Edward Kennedy, D-Mass., and others want to spend $60 billion over five years to enroll an additional 6 million eligible children whose families are either unaware of the program or have chosen not to join. President Bush wants to add $4.8 billion over five years but refocus on poor children. Fourteen states cover adults under the children's program.

There's a shortage of funding but states are covering adults under the children's program?