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New hope for federal aid to states

Yesterday, U.S. Senate leaders unveiled a reworked version of the jobs legislation passed earlier by the House. Though still inadequate (it still doesn’t include the COBRA extenders that would keep the unemployed eligible for health insurance), this version is far superior to the House version – especially since it includes a six-month extension of extra federal funds to states. If adopted it could fill the close-to-$500 million gap that North Carolina lawmakers have been worrying about in recent days.

For more details, check out this New York Times report.

And, in case you have any doubts about just how critical these proposed changes are, check out the latest comprehensive update from the Center on Budget and Policy Priorities entitled: “Failing to Extend Fiscal Relief to States Will Create New Budget Gaps, Forcing Cuts and Job Loss in at Least 34 States: More Cuts in Health, Education and Other Areas Could Stall Nation’s Economic Recovery.”

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