ATLANTA - Gov. Sonny Perdue announced plans Tuesday to use state money to keep Georgia children insured while Congress continues to hash out ways to fund PeachCare.

Along with House Speaker Glenn Richardson, R-Hiram, and Lt. Gov. Casey Cagle, Mr. Perdue proposed the use of state funds already in the budget for Medicaid to fill the gap in PeachCare, a program that provides health insurance for children whose families earn too much to qualify for Medicaid but not enough to afford private insurance.

In a later news conference, Democratic legislators said they already had proposed such a measure and added that more needed to be done in upcoming weeks to end an enrollment freeze that has kept otherwise eligible families from getting coverage since the funding crunch became critical last week.

Sen. Kasim Reed, D-Atlanta, said he was pleased with Mr. Perdue's announcement but the freeze, effective Sunday, was avoidable.

"We need to stop playing chicken (with Congress) and do what is in the best interest of children," he said.

Earlier this month, U.S. House Appropriations Chairman Dave Obey proposed a bill that would include an additional $735 million to fund similar programs in 14 states.

With the recent developments in Congress, Mr. Perdue said turning to Medicaid funds would be an appropriate short-term solution.

Mr. Reed also criticized a Georgia plan backed by many Republicans and written by Mr. Richardson that would reduce the eligibility rate for the program from 235 percent of the poverty rate to 200 percent.

"If you want to cut the program, stand before the people of Georgia and tell them you are going to cut their program," he said.

This year, 235 percent of the poverty level for a family of four equates to $48,527.50 compared with $41,300 at 200 percent.

The state's current eligibility level is higher than neighboring states, such as Tennessee, where the eligibility begins at 185 percent of the poverty level, according to Mr. Richardson.

U.S. Rep. John Barrow, D-Ga., introduced legislation in Congress on Tuesday that would cover Georgia's $131 million shortfall without reducing eligibility requirements.

In a news release, Mr. Barrow said the program was not intended for the "poorest of the poor" but for children of working families.

State Rep. Nikki Randall, D-Macon, said the state's surplus of more than $500 million could handle the shortfall and added that Mr. Perdue's plan essentially mirrors the language of a bill she wrote.

House Bill 236 called for the sole use of state funds to continue the program if federal funding was unavailable. The bill has stalled in a House committee since the beginning of February.

"I wish I'd thought of it myself," she said of the GOP proposal.

"Oh, but I did think about it myself," she added sarcastically.

According to the Georgia Department of Community Health, more than 270,000 children are currently enrolled in PeachCare.