Both the U.S. House and Senate agreed to extend the current State Children's Health Insurance Program, with no increase in the federal excise tax on cigars, through March 2009. However, this does not mean that Congress will not try to pass a new SCHIP bill before that time. In addition, the House will attempt to override the President's second veto of the SCHIP legislation on January 23, 2008, even though the vote is expected to fall short of the two-thirds majority required to override the veto. Although a massive increase in the federal cigar tax no longer appears to be an immediate concern, the threat of higher taxes in the future has not been quashed. We will continue to monitor this situation for further developments, but in the mean time, it is time to relax and enjoy some holiday cigars!