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States Set for New Trouble

Federalism

GOP wants to roll back aid to pre-stimulus levels.

Get your organ transplants while you can: State governments are set to take a big hit, as the GOP vows to roll back federal aid to pre-stimulus levels. States currently receive about one-third of their funds from the federal government, but the $135 billion stimulus they received is drying up, and the GOP is unlikely to replenish it. That means cuts in programs like Medicaid, education, and transportation. Over the next two years, states will face a budget gap of $175 billion.

Read it at NPR