by Calculated Risk on 8/04/2010 06:55:00 PM

From the NY Times: Senate Vote Clears Way for $26 Billion in Aid to States

The Senate on Wednesday cleared the way to provide $10 billion to states and local school districts to prevent teacher layoffs and an additional $16 billion in federal aid to cash-strapped states ... The cost of the current version of the bill is fully paid with other spending cuts and a provision to close a tax loophole ... The $16.1 billion in aid to states would increase the federal government’s contribution toward Medicaid costs

This bill will provide Medicaid funding through the first 6 months of 2011, and the sponsors say it will help save 140,000 teacher jobs.

I'll have another update on the 2nd half slowdown tomorrow, but this will reduce the cutbacks at the state and local level in the 2nd half of 2010.