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The five-year-old State Children's Health Insurance Program (SCHIP), which currently benefits 3.8 million low-income children, faces its first real fiscal challenge as states contend with deficits surpassing $36 billion in fiscal 2002. What are the prospects for retrenchment of this joint federal-state endeavor? To answer that question, Urban Institute health policy researchers interviewed SCHIP administrators and other officials in 13 states during the summer of 2002. The study, part of the Urban Institute's multiyear SCHIP evaluation being conducted by its Assessing the New Federalism (ANF) project, looked at how SCHIP is faring in Alabama, California, Colorado, Florida, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, New York, Texas, Washington, and Wisconsin.