Medicaid Funding Passes Senate, House the Next Hurdle

After weeks of negotiations, last Thursday the Senate granted $26 billion in aid money to states and school districts to halt layoffs of thousands of government employees, teachers, and emergency and law enforcement workers. A large chunk of these much-needed funds will go toward Medicaid programs in states whose administrators have been struggling to make ends meet (our friends at Aging and Disability in America posted on it last Friday). Another $600 million was allocated in the same bill to strengthening border security in vulnerable southern states. Of these funds $10 billion will go to help teachers who might otherwise be laid off because of cutbacks keep their jobs and $16 million will help states close budget gaps left by rising healthcare costs.

Though the bill allocates in the neighborhood of $27 billion, it does not add to the deficit as the money generated by spending cuts and by closing a business tax loophole will cover the cost. The measure was approved by a 61 to 39 vote in the Senate last week. The majority was comprised of 57 Democrats, 2 Independents, and the ladies from Maine – Republicans Susan Collins and Olympia Snowe. 39 Republicans voted against the bill, many on the basis that it is a breach of ordinary federal-state relations.

The House has been called back early from its six-week August recess to vote on the measure tomorrow. Democratic Party leaders expect the House vote to go smoothly with an easy approval. However, though the bill does not increase the deficit some representatives whose districts are vulnerable this fall feel they’re again being asked to “walk the plank” with their party on an unpopular economic-stimulus issue. Vulnerable Democrats are especially irritated at being called back from vacation given they’re already defending their seats because of Senate inaction during the dragged out healthcare debate and budget debates. As a result of this many House Dems have become less responsive to party whips, making estimating a vote count difficult.

Though most legislators agree that states burdened with budget gaps desperately require the funds to keep teachers employed and Medicaid enrollees in the program, Republicans contend that calling House members back from recess to vote on a bill that stalled after two weeks of partisan posturing will reinforce popular perception of Dems as ineffective leaders. This narrative that Dems are haphazard and not unified in their approach to the recession and unemployment will likely be reinforced by Friday’s monthly jobs report, GOP spokespeople argue.

State Aid Bill Extends Funds for Medicaid

Conversely, House Democratic leaders see the bill as a win-win worth the admittedly messy passage as it will create jobs and respond to urgent budget concerns without raising the deficit.

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Tags: house called back to vote on state aid bill, medicaid funds extended to states, senate votes $26 billion for states and schools, state aid bill doesn't increase deficit, state medicaid funding extended