Senate Approves Medicaid Funds for States

August 5, 2010

The US Senate has passed a stimulus bill that will send $16 billion in additional Medicaid funding to help states that are struggling with budget shortfalls.

Approval of the bill came after two Republican senators – Olympia Snow and Susan Collins – joined Democrats to break a deadlock over the measure. The legislation passed on a 61-39 vote.

The legislation also included $10 billion to help cash-strapped states avoid laying off teachers, but deleted additional money for the food stamp program.

Earlier versions of the bill had earmarked between $23 and $26 billion in additional Medicaid assistance for states. Opposition to the stimulus package was mostly centered over its impact on the Federal deficit.

Congressional budget analysts determined that the final language would not add to the deficit.

The Senate action went down to the wire, with the leadership pushing for action before senators started their August recess. While the House is already in recess, Speaker Nancy Pelosi said she would call members back to Washington early next week to approve the Senate version.

The House had previously voted on a stimulus package that contained a larger Medicaid enhancement. 

Some states that had based their 2011 fiscal year budgets on the higher level of Medicaid assistance in earlier versions still may have to trim spending to balance their budgets.