US President Barack Obama sees expansion of government health insurance to millions of lower-income children as a first step of several to come in providing coverage for all Americans.

Ending a two-year effort by Democrats, Obama signed legislation on Wednesday that will allow about 7 million children to continue coverage through the State Children's Health Insurance Program (SCHIP) and allow an additional 4 million to sign up. Unlike other developed countries, the United States does not have universal health care.

"The way I see it, providing coverage to 11 million children through CHIP is a down payment on my commitment to cover every single American," Obama said at a White House bill-signing ceremony.