Obama Signs for Medicaid Aid to States

WASHINGTON — In a rare recess session Aug. 10, the U.S.
House of Representatives voted to send an additional $26.1 billion
in Medicaid and education funding to the states, and President
Barack Obama signed the measure just hours later.

The legislation gives states $16.1 billion in increased Medicaid
matching funds, and $10 billion to preserve jobs for teachers. Many
states had counted on the extra dollars when they approved budgets
earlier this year. Without it, officials warned, looming deficits
could force cuts in Medicaid benefits and reimbursements to comply
with balanced budget requirements.

Called back from their August recess by Speaker Nancy Pelosi,
members of the House voted 247-161 in favor of the bill, mostly
along party lines. Only two Republicans voted for the measure and
only three Democrats voted against it. The Senate passed the
bill Aug. 5.

Under last year’s economic stimulus law, the states got a
temporary bump in their federal medical assistance percentage
(FMAP), but that money was slated to expire Dec. 31. The new
measure extends the enhanced spending for six months to help the
struggling states stave off Medicaid program cuts.

With the recession continuing to hammer tax receipts, some
reports estimate budget gaps for the 50 U.S. states could tally as
much as $120 billion over the next year.