On Tuesday, President Obama quickly signed into law a bill that will give $26 billion to struggling states. Although most media reports are focusing on the aid for teachers, nearly two-thirds of the money, or $16 billion, will go toward helping states cover Medicaid payments for the first half of 2011, Politico reports.
The six-month extension of Medicaid's temporary enhanced Federal Medical Assistance Percentage (FMAP) is designed to help states pay for more Medicaid coverage, according to HealthLeaders Media. Many states had called for an extension earlier this year.
The bill was signed into law after a rare mid-recess session, during which the House approved a $26 billion stimulus package Tuesday in a 247 to 161 vote to help bolster cash-strapped states. Most Republicans voted against the bill in a largely party-line vote, which now goes to Obama for signing perhaps as soon as Tuesday, the Washington Post reports.
Supporters say the bill offers a much-needed additional infusion of funds during a historic cash crunch. Detractors counter that it's another example of wasteful spending.
The aid package is half the size it was two months ago when Obama asked Congress to approve a nearly $50 billion emergency spending bill that would have contributed to the deficit, Politico reports. Unlike past spending efforts, according to the Christian Science Monitor, the bill will pay for itself through a combination of tax reforms and often painful spending cuts.
The Congressional Budget Office estimates that over the next decade, the bill will more than pay for itself.
To learn more:
- read the Reuters article
- read the Washington Post article
- see the Politico story
- read the Christian Science Monitor story
- read The Hill's article
- read the HealthLeaders Media article