States and the Stimulus Emergency Fund for Needy Families

States: We can’t afford costs tied to $5B emergency fund, By Michael Grabell and Chris Flavelle, September 7, 2009, USA Today: “Many states are walking away from a $5 billion federal fund that some economists say is a swift and effective way to help people hurt by the recession and stimulate the economy. The states say they can’t collect their share of the emergency fund for needy families because they can’t afford to put up the 20% of costs required by the federal government. Six months after the money was made available under the $787 billion federal stimulus program, only 27 states have applied for funds, according to the U.S. Health and Human Services Department. Most have tapped only a small fraction of the money they’re entitled to – less than 15% in most cases. As a result, as much as $1 billion could be left on the table when the program ends in September 2010, estimates Jack Tweedie of the National Conference of State Legislatures. The fund can be used to help states cope with growing welfare caseloads, create temporary jobs for the unemployed, pay rent for families facing eviction and immediately put cash in people’s pockets…”