State Aid Bill
Date:
August 10, 2010
Maximum Amount:
$26.10 billion
Amount Spent:
$24.10 billion
Deficit Impact:
-$1.37 billion On August 10th, 2010, President Obama signed the state aid bill, which provides funding for education jobs and an extension of the increased Medicaid matching to states that was originally enacted in the 2009 stimulus (ARRA). The bill is intended to address the budget shortfalls that nearly every state is experiencing.
Those two provisions will cost $26 billion combined over ten years, with $10 billion coming from the education jobs fund and $16 billion coming from Medicaid. The cost of the bill is fully offset, mainly by tightening the rules for the foreign tax credit and by terminating the ARRA increase in food stamp benefits in 2014, earlier than expected.
The total deficit impact is -$1.4 billion over ten years.
Notes:
Maximum amount reflects the ten-year cost of the two main provisions. Deficit impact is taken from CBO's calculation of the cost of the bill from 2010-2020. Amount spent represents education outlays as reported by FederalTransparency.gov and CRFB projections of FMAP spending as of 4/30/2012.