The U.S. Senate signaled today that it will pass legislation providing $16 billion in additional aid to states, including about $1.28 billion for California in Medicaid dollars, according to the Department of Finance.
That clears a major hurdle for the funding, which is likely to win House approval and President Barack Obama's signature. Congressional Republicans have criticized the proposal for overspending.
State officials praised today's action, but it's about $500 million less than what Gov. Arnold Schwarzenegger and lawmakers were counting on in their budget proposals. State leaders will have to find another budget solution to make up for that money as they tackle the state's $19 billion deficit.
The proposal also includes about $1.2 billion for school districts in California. Those funds likely will not help the state's bottom line, but they are supposed to help districts retain teachers.
PHOTO CREDIT: Then Governor-elect Arnold Schwarzenegger strides through a corridor off the U.S. Senate floor as he visits lawmakers on Capitol Hill in Washington, Wednesday, Oct. 29, 2003, to appeal for federal funds. (AP File Photo/J. Scott Applewhite)
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