Yes, that is normal behavior. You basically read to the end of the file the first time (you can sort of picture it as reading a tape), so you can't read any more from it unless you reset it, by either using f.seek(0)
to reposition to the start of the file, or to close it and then open it again which will start from the beginning of the file.
If you prefer you can use the with
syntax instead which will automatically close the file for you.
e.g.,
with open('baby1990.html', 'rU') as f:
for line in f:
print line
once this block is finished executing, the file is automatically closed for you, so you could execute this block repeatedly without explicitly closing the file yourself and read the file this way over again.