Within hours of the U.S. House of Representatives passing legislation to extend the Federal Medical Assistance Percentages (FMAP) increase to states, President Obama signed the bill into law.

By extending FMAP through the end of 2011, the federal government will distribute an additional $16.1 billion in Medicaid funding to states.

House Votes Along Party Lines

The representatives voted 247 to 161 to approve the state-aid package (H.R. 1586) during a special emergency session held on August 10. Just two Republicans voted to provide relief to the cash-strapped states; only six Democrats voted against the bill.

House Speaker Nancy Pelosi (D-CA) called the representatives back to Washington, D.C., from summer recess to vote on the legislation, after the Senate unexpectedly passed it.

“We are pleased that Congress did the right thing and voted in favor of extending additional funding to states for their Medicaid programs, funds essential to preventing further erosion of coverage and services,” said PHI Government Relations Director Carol Regan.

“However, this was accomplished, in part, by rolling back a temporary increase in food stamps,” Regan added. “We will work with our allies in the Leadership Council of Aging Organizations to restore assistance to low-income families relying on this program.”

Offsetting the Cost

To offset the cost of the state-aid package, several provisions are in place, including accelerating the timetable to halt temporary increases in food assistance benefits.

The $26 billion bill has been called the Jobs Bill, because it also includes $10 billion for states to prevent teacher and other public service worker layoffs due to shortfalls in state budgets.

A chart (pdf) on how the funding will be allocated in each state is available from the Center on Budget and Policy Priorities.

– by Deane Beebe