Obama Hands States $15B For Medicaid

(CBS/AP)  President Barack Obama said Monday he would begin distributing $15 billion to the states within two days to help them with Medicaid payments to the poor.

The money will begin reaching the states Wednesday from the newly passed $787 billion economic stimulus program, Mr. Obama told the nation's governors during a meeting at the White House.

The recession has had a huge impact on state budgets, and one area public officials are struggling with is in meeting costs in the Medicaid program for the poor. The program is underwritten jointly by states and the federal government.

Speaking to state chief executives at the close of the three-day winter session of the National Governors Association, Mr. Obama also addressed concerns about the stimulus plan raised by a handful of Republican governors who have called the plan overly large and wasteful .

At issue is a proposed expansion of state unemployment benefits for part-time workers and others who where previously ineligible to receive the funding. Some GOP governors - several with an eye on the 2012 presidential contest including Mark Sanford of South Carolina and Bobby Jindal of Louisiana - say they may not accept that funding because it will require a tax increase on employers once the stimulus money runs out.

Mr. Obama addressed that critique directly, and warned against allowing political considerations to cloud a discussion of the stimulus program.

"I think there are some very legitimate concerns on the part of some about the sustainability of expanding unemployment insurance. What hasn't been noted is that that is $7 billion of a $787 billion program. And it's not even the majority of the expansion of unemployment insurance," Mr. Obama said.

He added, "If we agree on 90 percent of this stuff, and we're spending all our time on television arguing about 1, 2, 3 percent of the spending in this thing, and somehow it's being characterized in broad brush as wasteful spending, that starts sounding more like politics. And that's what right now we don't have time to do."

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Click here to read President Obama's full comments

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Mr. Obama also stressed the need for accountability and transparency in how the governors spend the stimulus funds.

He named Earl Devaney, a former Secret Service agent who helped expose lobbyists' corruption at the Interior Department, to head the new Recovery Act Transparency and Accountability Board. Vice President Joe Biden also will be given a role coordinating oversight of stimulus spending, Obama said.

Mr. Obama created the board as an at-large body to oversee how the government spends the $787 billion stimulus package.

The president also was expected to begin showing his budget hand at a White House summit on fiscal policy before he travels to the U.S. Capitol Tuesday for his first address to Congress. Those invited to Monday's summit include independent experts, representatives of unions and advocacy groups, and members of Congress.

Federal regulators, meanwhile, pledged they will launch a revamped program to inject fresh capital into financial institutions starting Wednesday. Several regulatory agencies issued the statement Monday amid growing concern that some of the biggest U.S. banks may need additional assistance to survive the fallout from the worst financial crisis since the 1930s.

The statement did not name any specific banks or respond to reports that the government was considering increasing its ownership of Citigroup Inc. The White House just last week downplayed persistent speculation that some banks could be effectively nationalized by the federal government.

[warlock7734]

the ny state gov is cutting medicare so much for that idea

[mytimehcome]

You need to ask Bush about snorting the cocaine since he was a dope using alcoholic while his father was the head of the CIA. This past year was hard on him. I can tell that he fell off the wagon because he looks like he started drinking again. Too bad, so sad. Now Bush can call up his old pal OSAMA and they can go back in the oil business together again, just like old times.

[mytimehcome]

You people are incredible. I wish you all that you wish for yourselves. It was alright as long as we hard worked in this country and made the corporations more profitable than they have ever been. We (people of America) deserved better, but our greedy politicians and corporate midgets sold this countries productive future down the drain. Remember America (YOU REAP WHAT YOU SOW). Why would people who need so much help today attack and abuse the only entity that has given any thought to your poor mouth problems. Don't worry I'm sure you'll have plenty of time to screw up any recovery made by this great man President Obama!!! You should be writing George and his crew a thank you letter. I know I have... Thank you for being so bad for the country that we (the majority that won) got a wonderful, and decent President FINALLY. Thank God!!!

[roystoll2]

The stock market is in the toilet. Every American carmaker that has union workers, is on their death bed. The banks are dropping like flies. If it is okay with you, I''ll keep my money, my freedom & my guns & you can keep the "CHANGE"!

[markinga]

I dont know if you are being sarcastic when you point out that the Republican states have lower infant mortality rates. Actually, SC, MS, LA, GA, AL KY have the highest. Thats the sad part because their Senators consistently vote against Medicaid. I suspect its because of which babies are dying.

[quickthought]

All except the republican states that voted against it, right?

[markinga]

The U.S. has the highest infant mortality rate of all highly industrialized nations. If you have a problem with thissituation you shouldn't have a problem with increasing Medicaid.

[realamerica3]

Reckon this worthless POS learned to play these shell games on the streets of NY when he was snorting cocaine and supposedly attending Columbia, or is this something he learned in Chicago??

[mjvw2]

and how does this stimulate the economy?

[cattiej]

Does this mean that some people who get Medicaid and SSI because they used illegal drugs and continue to use Illegal drugs, almost everytime they get a SSI Check, will continue to be on the Medicaid rolls?
How many illegal aliens beside Obama's aunt are on Medicaid? If you get Medicaid you should have to do some type of community service when you are able to. Some people could clean along the roads where there is plenty of junk thrown out the car windows by messy people. Do illegal aliens also get unemployment money?