Senate to vote on $26 billion in aid for desperate states

By Tami Luhby, senior writer


NEW YORK (CNNMoney.com) -- Senate Democrats are once again trying to push through a bill that would send $26 billion to needy states.

The measure contains $16 billion in additional Medicaid money and $10 billion in education funding to prevent teacher layoffs. State officials have been desperately lobbying their representatives, saying they need the money to shore up their budgets. President Obama weighed in Monday, asking lawmakers to pass the bill.

Lawmakers will take a procedural vote on Wednesday. It needs 60 votes to pass, meaning some Republicans would have to cross the aisle. If it passes this hurdle, a final vote could come late in the week, just before the Senate is scheduled to recess for the long August break.

Senate Majority Leader Harry Reid, D-Nev., had pushed back the vote by two days to amend the legislation after learning it would increase the deficit by $4.9 billion despite offset measures. The amended bill has no impact on the deficit.

The GOP, however, is not taking kindly to sending more aid to the states, saying the original $787 billion stimulus package was meant to do that. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,730.11 -27.80 -0.16%
Nasdaq 5,009.21 -3.91 -0.08%
S&P 500 2,076.78 -0.64 -0.03%
Treasuries 2.39 -0.02 -1.03%
Data as of 9:41pm ET
Company Price Change % Change
Bank of America Corp... 17.03 0.00 0.00%
Apple Inc 126.44 0.00 0.00%
Intel Corp 30.56 0.00 0.00%
Micron Technology In... 19.07 0.00 0.00%
General Electric Co 26.78 0.00 0.00%
Data as of Jul 2
Sponsors

Sections

Greece votes Sunday in a crisis referendum that will determine the country's future in the eurozone. The result is too close to call. More

Entrepreneur Guillaume Gauthereau is on a mission to build a 50 to a 100 acre sanctuary in New York to provide refuge to honey bees. More

The most expensive schools in the nation are charging close to $50,000 a year in tuition and fees alone. More