Second Economic Stimulus Package

May 7, 2008

Discussions continue among Members of Congress about a second stimulus package to include provisions left out of the first package. The situation is fluid, but provisions may be attached to the emergency supplemental appropriation, which funds the wars in Iraq and Afghanistan. Specifically, legislators may include an extension of unemployment insurance as written in the stand-alone bill H.R. 5749. This bill would provide an additional 13 weeks of unemployment insurance eligibility for those unable to obtain work in the present job market, and an extra 13 weeks for people experiencing unemployment in states with 6% or more unemployed. This bill passed the Ways and Means Committee on April 16.

Legislators have also discussed including moratoria on the administration’s seven harmful Medicaid regulations, which would cut funding for rehabilitation services, school-based transportation services, case management, payments to teaching hospitals, and other crucial services. Essentially, these regulations make superficial cuts by shifting costs onto states, even as 25 are experiencing budget shortfalls due to the faltering economy. These regulations, if not halted, will force states to make further cuts in programs such as Medicaid, SCHIP and education in order to meet constitutional requirements to balance their budgets. The House passed a bill, H.R. 5613, by a veto-proof majority of 349 to 62 on April 23, but some senators, as well as the president, have expressed opposition to the bill. Including moratoria on Medicaid regulations in the supplemental may aid its passage in the Senate.

A supplemental bill may move in the House as soon as May 8 or 9. A separate second stimulus bill containing provisions not included in the supplemental may move, but it has much less chance of passing. Such a bill would probably not reach the floor until after the Memorial Day recess.

NETWORK continues to support and advocate for inclusion of unemployment insurance, nutrition assistance through food stamps and WIC, LIHEAP, an increase in the federal share of Medicaid expenses, and a repeal of cuts to Child Support Enforcement in the second stimulus package.