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August 5, 2010

Congress Set to Boost Federal Tax Dollar Aid to States

Naftali Bendavid:

Congress took a decisive step Wednesday toward finalizing a $26 billion bill offering aid to states, a surprise win for Democrats keen to demonstrate they're taking action on an economy showing signs of weakness.

The bill, designed to prevent teacher layoffs and help states with their Medicaid payments, comes after months of foot dragging by Congress. Lawmakers have proven reluctant to spend money on everything from stimulus projects to additional unemployment insurance, amid increasing voter concern about the size of the U.S. budget deficit.

But Wednesday's action, which won the support of two Republicans, suggests members of Congress are sufficiently concerned about the mixed signals from the economy that they're willing to approve narrow spending bills, particularly those with political resonance ahead of this year's midterm elections.

Wednesday's 61-38 vote in the Senate overcame a filibuster and made final passage in the Senate likely as soon as Thursday. House Speaker Nancy Pelosi (D., Calif.) responded by taking the rare move of calling House members back from their summer recess next week to pass the bill and send it to the desk of President Barack Obama.

Related: Forget Your Vacation, Come Bail Out Public Education, EduJobs Clears Senate While Schools Are Rehiring and the spotlight on city pay widens in California.

Posted by Jim Zellmer at August 5, 2010 2:05 AM
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