CHIP funding was extended in 2009–2013 with support from which funding measure?

• A. Increase in federal excise tax rate on tobacco
• B. Increase in corporate tax rates
• C. Increase in payroll taxes
• D. Expansion of state cigarette taxes

Answer: (A)

The key idea here is how public health programs can be funded through dedicated revenue streams. When CHIP was extended from 2009 to 2013, the funding came from a rise in the federal excise tax on tobacco products. In other words, Congress increased the federal tobacco tax and directed the additional revenue to support CHIP funding during that period. This approach ties health-related policy aims (reducing tobacco use and expanding coverage for kids) to a tax designed to influence health behavior and generate dedicated funds for health programs.

The other options don’t fit this funding pattern. Raising corporate or payroll taxes would affect general federal revenue rather than providing a targeted, earmarked stream for CHIP. Expanding state cigarette taxes is a state-level measure, not a federal funding mechanism, which is what the question specifies.