Obama Signs Bill to Save Teacher Jobs

(CBS/AP)  Updated 6:05 p.m. ET

Summoned back from summer break, the House on Tuesday pushed through an emergency $26 billion jobs bill that Democrats said would save 300,000 teachers, police and others from election-year layoffs. President Barack Obama immediately signed it into law.

CBS News Correspondent Chip Reid reports that both parties were happy the president signed the bill: Democrats because it gives them a jobs bill to brag about back home and Republicans because it helps them argue that Democrats are leading the nation to financial ruin.

Lawmakers streamed back to Washington for a one-day session as Democrats declared a need to act before children return to classrooms minus teachers laid off because of budgetary crises in states that have been hard-hit by the recession.

Republicans saw it differently, calling the bill a giveaway to teachers' unions and an example of wasteful Washington spending that voters will punish the Democrats for in this fall's elections. The legislation was approved mainly along party lines by a vote of 247-161.

The aid for the states is to be paid for mostly by closing a tax loophole used by multinational corporations and by reducing food stamp benefits for the poor.

Food Stamps Slashed to Pay for Teacher Jobs Bill

Obama, joined by teachers at a Rose Garden ceremony earlier in the day, said, "We can't stand by and do nothing while pink slips are given to the men and women who educate our children or keep our communities safe."

The Senate narrowly passed the measure last Thursday, after the House had begun its August break.

The legislation provides $10 billion to school districts to rehire laid-off teachers or to ensure that more teachers won't be let go before the new school year begins. The Education Department estimates that could save 160,000 jobs.

Education Secretary Arne Duncan said his department would streamline the application process to get the money to local school districts quickly. He said three-fourths of the nation's districts have said they would be opening the school year with fewer teachers and "we wanted to avert a crisis for this year."

An additional $16 billion would extend for six months increased Medicaid payments to the states. That would free money for states to meet other budget priorities, including keeping more than 150,000 police officers and other public workers on the payroll.

Some three-fifths of states have already factored in the federal money in drawing up their budgets for the current fiscal year. The National Governors Association, in a letter to congressional leaders, said the states' estimated budget shortfall for the 2010-12 period is $116 billion, and the extended Medicaid payments are "the best way to help states bridge the gap between their worst fiscal year and the beginning of recovery."

Not all governors were on board. Mississippi Republican Haley Barbour said his state would have to rewrite its budget and would have to spend $50 million to $100 million to get its additional $98 million in education grants.

The $26 billion package is small compared to previous efforts to right the flailing economy through federal spending. But with the election approaching, the political stakes were high.

"Teachers, nurses and cops should not be used as pawns in a cynical political game" resulting from "the Democratic majority's failure to govern responsibly," said Rep. David Dreier, R-Calif.

"Where do the bailouts end?" asked Republican leader John Boehner of Ohio. "Are we going to bail out states next year and the year after that, too? At some point we've got to say, 'Enough is enough."'

But Democratic Rep. Jay Inslee said his state of Washington would get funds to keep 3,000 teachers. Republicans, he said, "think those billions of dollars for those corporate loopholes is simply more important than almost 3,000 teachers and classrooms in the state of Washington."

Rep. Jim McDermott, D-Wash., said Republicans ignore the fact that the law would not add to the federal deficit. "They want to do everything in their power to make certain that President Obama can't get this country going again. I think in November they are going to find it was a dumb policy."

The means of paying for the bill, a result of difficult negotiations in the Senate, were contentious.

Republicans objected to raising some $10 billion by raising taxes on some U.S.-based multinational companies. Advocates for the poor protested a provision to accelerate the phasing out of an increase in food stamp payments implemented in last year's economic recovery bill. Under the measure, payments would return to pre-stimulus rates in 2014, saving almost $12 billion.

James Weill, president of the Food Research and Action Center, said that would be cutting benefits for some 40 million people now receiving food stamps. "Those families will be hungrier and less able to buy healthy diets," he said.

Weill's group estimated that a family of four that may now receive about $464 a month in food stamps stood to lose about $59. Democrats gave assurances that they would look for other ways to pay for the law before the payment cuts go into effect in four years.

"The cutbacks in food stamps in the bill are plain wrong," said House Appropriations Committee Chairman David Obey, D-Wis.

American Federation of State, County and Municipal Employees President Gerald McEntee rejected GOP arguments that the Democrats' primary purpose with the legislation was to reward their friends in organized labor. "We're in tough shape out there with these incredible holes in these state budgets. To the American people it's tremendously important and will give a little lift to the economy," he said of the legislation.

The House on Tuesday also passed a $600 million measure to boost security on the U.S.-Mexican border by hiring more enforcement officers and making greater use of unmanned surveillance drones. That bill still has to go back to the Senate.

[tsigili]

Reducing food stamps for the poor, to provide teachers security, is far from a win for the Dems. That simply shows the true reality......the Dems don't really care about the poor at all. They just give that lip service, and nothing more.

[dadirt]

Save union jobs, to hell with everybody else. Should cut welfare though. tired of seeing people in grocery stores buying better food than me with a nice looking government credit card.

[larrryshrine]

Frankly, I'm surprised to see such anti-teacher sentiment here. I have some experience, having been a college professor for a number of years. First, the bill: More than 300,000 jobs created - including 160,000 teachers - at a time when the federal government is under great pressure to reduce unemployment. And - no increase in the deficit - mainly appropriately taxing multinational corporations Republicans love. (I don't like the cut in food stamp increases.) So let's talk about teachers. Sure, they get extra time off, but their time in the classroom can be quite difficult. Many districts have gangs, parents don't care, students feel entitled, and classrooms are overcrowded. Nights and weekends are spent grading papers and developing lesson plans. Teachers buy supplies out of their own pockets. The burnout rate is high, and the union doesn't help them that much with wages - salaries are relatively low for a degreed professional. And no, teachers do not get unemployment in the summer. We say that teachers are one of the pillars of our society, and that educating our youth is abundantly important. Many teacher jobs have been cut because states and counties can't pick up the tab; this bill will alleviate much of that. It is a win-win situation. Good for students. Good for teachers. Good for the country. Thank you.

[JFK2112]

The bill is going to create 3000,000 new jobs? No increase in deficit, how is that possible? Teachers do get paid in the summer...its either prorated for the entire year or they receive a lump sum before summer. Listen, we all know teachers are very important, however this really doesn't have anything to do with them. Its about this Government throwing money at a problem hoping to fix it. By the way, the next bill to pass with be the wellfare bill to add more money to that program.

[larrryshrine]

My point was to point out to a poster who thought teachers could get unemployment during the summer. Wrong. Regarding how this bill is going to be financed, read the stories: There will be a tax increase for multinational corporations and, starting in 2014, a modest diminishing of food stamp stipends. No - there will be no increase in the deficit. Teachers can choose to be paid over ten months or twelve months, but the gross figure is the same either way.

[jeff-fla]

For all who are complaining. Teachers and cops are important, I think way more important than any Iraqi. You all seem to support spending 9 to 13 billion a MONTH, but complain when 23 billion is spent over a YEAR to educate your kids and protect your streets.

[RobAla]

The jobs may be important, but it is the manner in which these people were funded that ticks me off. We have hundreds of billions of dollars left in unspent stimulus money, and this should have been used to fund this. What are they saving this stimulus money to do? Instead, we have some companies being taxed more to pay for this, and the poor have less in food stamps (at a time of extended high unemployment). I would like to know if all of the $26 billion is being paid for, or if some of it will add to the horrible deficit. What are they saving this stimulus money to do?

[Amazingoly]

Not sure if anyone believes they will slash food stamps in 2014 for this additional boondogle. Slush fund at the finest for the Democrats. We will remember in November, believe us.

[tomrobla]

Public school administrators here say that instead of rehiring teachers they will mostly likely increase salaries of existing teachers and perform repair of facilities. The California state budget is so uncertain that they are reluctant rehire and layoff teachers.

[pohd1]

It's nice to see Obama so concern about saving government jobs I just wish he would have the same concerns allowing private businesses to be able hire. Without government handouts but without the government monkey on their backs.

[realist51]

the goverment gave corperate america handouts under the bush chaney regime and what reward did it reap for the average american? a big republican nothing. worst job growth ever under the bush republican reign. private business has elimenated 800,000 jobs in the last two years. when was the last time you seen a private business build a school ,roads and bridges? but need the use of these facilities more than you or I. when was the last time private business did mass hirings instead of layoffs? when was the last time private business's gave out a good pay raise and benefits? now when private business needs to help out by contributing to american society they all whine and cry. along with the republicant's that were all suppose to feel sorry for them. then theres the continous crying about the deficit and jobs. How does the goverment create jobs without spending money? the private sector needs to step up 125,000 a month need to be created here just to stay even. when was the last time the private sector did this?

[jschmidt27]

Let's all applaud the party of the poor, Democrats, who today cut the food stamp program to give teachers $26 billion bailout so they wouldn't have to be laid off. The teachers can now give money in the form of union dues to their favorite Democrat candidate thereby completing the intended circle of Democrats enriching themselves on the backs of the poor. Any Democrat supporter who doesn't think their party is just interested in power and not the people is really fooling themselves. The corrupt Dems in Congress need to go.

[texasborndemo]

You repugs make me want to puke,can you not comprehend the money is not going on the deficit,it's money that is being cut back,if a family of 4 can't live on $400 mo.of food stamps,they need to quit eating prime steaks and all the other foolish junk they buy then they would be fine,Ive seen them in stores baskets full of junk,candy,sodas,you name it,but all you so called conservatives are too hung up on what you here from Beck,Hannity,O'Rielly and all the bimbo blondes that come on fox,you need to get a reality check cause us demos have enough of you bs for the past 8 yrs,paybacks are hell huh?LMAO

[tomrobla]

Taking money away from food stamps to give to public employee unions. This is bailout money to big irresponsible Democratic states.