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DEMOCRATIC MEASURE PROVIDES FUNDING FOR MEDICAID AND UNEMPLOYMENT

(WASHINGTON, DC) -  Congressman Carnahan joined the majority of his colleagues in the United States House of Representatives to pass the Job Creation and Unemployment Relief Act, legislation designed to boost our economy and create jobs.  In this critical time of financial crisis, the House has acted to help everyday Americans who are out of work, states struggling with deficits and families trying to make ends meet.  H.R. 7110, the Appropriations for Job Creation and Preservation, Infrastructure Investment, and Economic and Energy Assistance Act passed the House by a vote of 264-158.

H.R. 7110 provides a temporary increase in Medicaid assistance to states, many of whom are struggling with high deficits that threaten to force cuts in key services.  The bill includes a 4% increase in Federal Medical Assistance Percentage (FMAP), which amounts to extra $376 million for Medicaid health costs in Missouri.

"A temporary increase in Medicaid assistance to states is a critical component of this economic stimulus package.  I am a strong supporter of increased funding for health care services for low-income families and have fought for its inclusion in this bill," said Congressman Carnahan.  "This action has precedence.  In fact, Congress increased the federal Medicaid assistance by a similar percentage in 2003."

The bill also extends unemployment benefits for an additional seven weeks for workers who have exhausted regular unemployment compensation and increases funding for food stamp assistance.  Over 18,000 unemployed workers in Missouri will loose benefits by the end of the year if legislation is not enacted.  Nearly 900,000 individuals in Missouri would receive food stamps under this legislation, generating $140 million in economic activity.  Economists believe that increasing funding for unemployment benefits and food stamps is an effective way to stimulate a lagging economy because individuals are most likely to spend, quickly adding money into the economy.

Congress enacted a first economic stimulus package in February of 2008.  Millions of Americans have filed and received rebate checks to help reinvigorate the economy and pay their bills.  The package provided rebate checks of up to $600 per individual and $1,200 per married couple, plus an additional $300 per child. A second stimulus package provides a needed influx of funds for additional proven methods of turning the economy around.

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