President calls for FMAP Extension

President Obama on Saturday asked Congress to provide more aid to states and cities to blunt “the devastating economic impact of budget cuts” by local governments. In a letter to Democratic and Republican Congressional leaders, Mr. Obama said the “mounting employment crisis” in the states “could set back the pace of our economic recovery.”

Proponents of aid to the states, including some Congressional Democrats, governors and mayors, have been urging the president to weigh in on proposed legislation, initially providing up to $50 billion in assistance, including a six month FMAP extension (see ANCOR Alert), which has been derailed in the House and Senate. The President did not endorse a dollar figure, reflecting the fact that Democratic leaders were trying to determine what amount could win enough votes in their party, given Republicans’ near-unanimous opposition.