Federal Aid To States | featured news

...So Massachusetts used not just federal Medicaid money but federal dollars above and beyond that Medicaid money to finance their health reforms. It is difficult to see how Romney’s proposal to cut Medicaid spending and hand that reduced share over to the states would allow other states to follow Massachusetts’ example. It might not even permit Massachusetts to continue following Massachusetts’ example.

Heavily indebted states could get immediate relief from the Obama administration under a plan to temporarily suspend interest payments they owe the federal government for borrowing money to cover the soaring cost of unemployment benefits.

With one in every eight workers unemployed and empty state coffers,
California is borrowing billions of dollars from the federal government
to pay unemployment insurance.

The House approves the measure on a largely party-line vote and President Obama swiftly signs it. It will save 161,000 teachers' jobs and sustain Medicaid funding.

Congress on Tuesday gave final approval to a $26.1-billion aid package for cash-strapped states that will keep 161,000 teachers and thousands of police, fire and other local government workers from being laid off.