"Fiscal aid to the states is an essential part of an economic growth package. My amendment will help states cope with the worst budget shortfalls in 50 years,"said Senator Collins. "Forty-nine of the 50 states are currently facing huge budget shortfalls and they need our help."
"At least 1.7 million people are at risk of losing their health care coverage because of state cuts to Medicaid that have already taken effect or are looming on the horizon. These are some of our most vulnerable citizens and they need our help. That is why I am particularly pleased that my proposal to provide a $10 billion increase in Medicaid funding was approved to help these low-income families."
Under Collins's amendment, Maine will receive a total of $115.6 million over the next two years: $65.6 million in Medicaid funding and $50 million in grants that can be used for services including education and job training, health care services, and homeland security.
In addition to helping needy families, Senator Collins's amendment has been hailed by analysts as a good way to stimulate economic growth. As states cut spending and raise taxes to balance their budgets, they take money out of the economy. Collins's amendment would put money in the hands of the states that, in turn, would put it directly into the economy.
"If we cut taxes in Washington only to have taxes increased in capitals across this country, we will lessen the very economic stimulus we are trying to provide. We know if we get money into the hands of the states, they will put it directly into the economy, and that is just the kind of stimulus our economy needs."