Houses Returns Briefly From Month-Long Recess to Pass $26.1 Billion FMAP Extension and Jobs Bill

Submitted by jsadowsky@ancor.org on Mon, 08/09/2010 - 11:15am
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By a vote of 247 to 161, the House passed H.R. 1586 today at 3:26 p.m. that provides $16.1 billion in additional federal Medicaid funding to states for a phased-down version of  Medicaid support for another six months beyond the current ARRA deadline of December 31, 2010.  The increased Federal match rate provides savings to states by reducing their state Medicaid match rate for drawing down federal funding for Medicaid expenditures.  The bill now goes to President Obama for his signature.

 

The House action follows Senate action last week in passing H.R. 1586 by a vote of 61-39, with Republican Senators from Maine-Snowe and Collins-joining their Democratic and Independent colleagues in providing the FMAP extension to prevent deeper Medicaid cuts and $10 billion in additional federal aid to states to prevent other teacher, police, and firefighter layoffs.

 

The $16.1 billion in additional temporary increase in the funds that the federal government contributes (increased FMAP) toward Medicaid and Title IV-E foster care programs maintains the current ARRA state eligibility maintenance of effort Medicaid requirement.

 

However, the level of temporary funding provides a lower FMAP enhancement from  January through June 2011 than the original ARRA across-the-board federal increase of 6.2% to state Medicaid programs.  The FMAP increase for January through March is 3.2% and 1.2% from April through June 2011.

 

The jobs bill is fully paid for through program rescissions and tax increases.  In addition to softening the blow of hard economic challenges states are facing, the bill is expected to reduce the deficit by $1.4 billion over 10 years according to the Congressional Budget Office.

 

See the Center on Budget and Policy Priorities August 6th report on state-by-state estimated distributions on federal Medicaid and education fiscal relief.  

 


Thanks to everyone for their hard and prolonged efforts to extend the FMAP enhanced federal funding and stem the growing Medicaid cuts in services, DSP layoffs, and provider rates!  Now press your state officials to apply this fiscal relief you fought for to disability programs.