States working to cut Medicaid Deficit

Many states are currently in a bind, as the US Government has cut funding, which will hit close to US homes in the forms of health care, education, public safety and social services. This has resulted in 30 states cutting their spending to avoid big deficit gaps.

The Medicaid provision, which would extend assistance first granted in last year’s stimulus package, was considered such a sure bet by many governors and legislative leaders that they prematurely included the money in their budgeting. But under pressure from conservative Democrats to rein in deficit spending, House leaders in late May eliminated $24 billion in aid to states from a tax and jobs bill that was approved and forwarded to the Senate.

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