"Fiscal aid to the states is an essential part of an economic growth package, and I am pleased that these desperately needed funds have now been included in the revised economic growth plan,"said Senator Collins. "But instead of writing a blank check, we must ensure that the relief we provide gets to the people who need it most. 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 plan to offer an amendment to ensure that at least $10 billion is directed toward the Medicaid program to help these needy families and avoid adding even more Americans to the growing ranks of the 41 million uninsured."
The amendment Collins will offer will also ensure that the state of Maine receives at least $125 million in assistance. This aid comes as Maine's Governor and Legislature work to balance the state's budget.
Collins, along with Senators Jay Rockefeller, Ben Nelson, and Gordon Smith, has been working since last year to win passage of a proposal that would increase the federal government's share of each state's Medicaid costs and provide block grants for social services. Earlier this year, Senators Collins, Rockefeller, Nelson, and Smith successfully offered a $30 billion fiscal relief package to the budget resolution. The amendment provided for at least half of the aid to be allocated through Medicaid relief. On March 20th, the Senate voted 80-19 in favor of Senator Collins's amendment.
In addition to helping needy families, Senator Collins's proposal 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 proposal 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. Therefore, we must stand beside our partners, the states, as they face a crisis of vast and still-expanding dimensions."