Under the Balanced Budget Act of 1997, Congress established the State Children's Health Insurance Program (SCHIP) to expand health insurance coverage to uninsured low-income children. This report summarizes the major findings of the first year of a national evaluation of SCHIP. Following a summary of major findings, the report examines state variations in eligibility for SCHIP, trends in SCHIP and Medicaid enrollment, trends in the number of uninsured children before and after implementation of SCHIP, successes and challenges in enrolling and retaining children in SCHIP, and state recommendations for improving Title XXI, authorization for SCHIP. Major findings noted include the following: (1) all 50 states and the District of Columbia have implemented SCHIP programs, which are tailored to each state's need, context, and capacity; (2) states vary in the extent to which they have expanded health insurance coverage for low-income children under SCHIP; (3) enrollment is continuing to increase at an impressive rate; (4) findings on the trend in the uninsured rate by poverty level are at least suggestive of an early influence of SCHIP, though the time series must be extended before valid inferences may be drawn about the direction and magnitude of change; (5) almost all states have made a deliberate attempt to streamline and simplify their application and redetermination policies and forms, and the majority have eliminated assets testing, and many have also reduced verification requirements; and (6) states recommended a variety of changes to coverage, financing, administration, and program orientation, with the constraints of the 10 percent administrative cap being mentioned most frequently. Overall, findings indicate that SCHIP is exhibiting growing momentum. The report's three appendices include a summary of amendments to Title XXI state plans, simulated program eligibility for a hypothetical family at various percentages of poverty, and number of children ever enrolled in SCHIP, by state. (Contains 12 references.) (HTH)