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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

State Budgets and Medicaid Costs

Medicaid money caught in political tug-of-war between states, Washington, By David Klepper, June 15, 2010, Kansas City Star: “If bailout-weary members of Congress have their way, Kansas and 29 other states will lose $25 billion in expected federal aid and face yet another round of gaping budget deficits. The money – amounting to $130 million in Medicaid dollars for the Sunflower State – is caught in the middle of a tug of war between cash-starved legislatures and Washington lawmakers reluctant to pass another bailout that adds billions in debt in an election year. A year ago, Congress increased the federal contribution to state Medicaid programs as part of the American Recovery and Reinvestment Act. But the extra money expires in December. Despite loud protests from Democratic and Republican governors nationwide, a bill extending the higher contributions for six additional months faces an uncertain fate in Congress. A Senate vote is possible this week, but there’s no guarantee of passage…”