Yesterday, the Senate cleared a major procedural hurdle and is expected to vote later this week on a bill that provides $26 billion dollars in aid to states. The bill includes an extension of the increase in the federal medical assistance percentage (FMAP) of $16.1 billion for Medicaid and $10 billion in education funding intended to prevent teacher layoffs. Speaker Pelosi announced that she would be calling House Members back next week from the August recess to vote on the bill. The House of Representatives must pass the exact same bill to send it to the President for his expected signature.
The bill is fully paid for but it reduces the amount of federal support for FMAP from the $24 billion that would have been available under previous versions of the extension. The provision would phase out the enhanced FMAP during the six-month period from January 2011 through June 2011, providing states with a 3.2 percentage point increase in the second quarter of fiscal year 2011 and a 1.2 percentage point increase in the third quarter of FY 2011.
The DPC has actively supported the FMAP extension and the education funding as they are both critically needed to prevent harmful cuts to services and schools. However, we are concerned that it is partially paid for by scaling back future food stamp benefits which serve many people with disabilities.
If you have any questions, please contact Julie Ward.
The Arc
1660 L Street, NW, Suite 301
Washington, DC 20036
p. 202.534.3700 | f. 202.534.3731
www.thearc.org
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