After a party-line vote in the House of Representatives, Congress sent a new jobs bill to President Obama's desk, August 10.
Obama administration officials declared the passage of the bill that provides direct aid to states to fund health care and education a "tremendous victory for America's children."
The bill allocates $16 billion to fund state Medicaid programs and $10 billion for teacher and educational salaries and benefits in the 2010-2011 school year. The bill prohibits states from diverting the money to "rainy day" funds or other unrelated spending, administration officials noted. However, by covering shortfalls in health and education spending to protect jobs and allow rehiring of laid-off teachers, states can avoid other cuts they may have been forced to consider, such as for public safety.
The Obama administration estimates the bill will protect 161,000 teacher jobs and allow states to keep another 140,000 plus health and public safety workers on the payrolls.
Following the vote, AFL-CIO President Richard Trumka slammed the Republicans for their near-unanimous opposition to the bill and their ongoing obstructionism.
"House Republicans showed they value Wall Street and tax cuts for the rich over teachers, police and firefighters," Trumka said. "This is yet another example in the laundry list of anti-jobs votes they've taken."
Tom McMahon, of Americans United for Change, said in a statement, “Today the Democratic-led Congress voted to protect the jobs of nearly 300,000 cops, fire fighters, nurses and teachers across America – and congressional Republicans lined up to vote to fire each and every one of them."
Teachers also welcomed passage of the bill. National Education Association President Dennis Van Roekel called the House’s vote a victory for students and educators across the country.
“With this vote, the House reaffirmed that the road to economic security and prosperity runs directly through our nation’s schools,” he said in a post on his union's website. “As a result of this vote, we expect to see less crowded classrooms, reinstated bus routes and restored education programs and services.”
American federation of Teachers President Randi Weingarten applauded passage of the bill. "While it’s too late to restore summer school, the funding will arrive just in time to help reinstate laid-off educators, reverse cuts to Advanced Placement and other classes, reopen school libraries, and end furloughs," she explained. "It is now imperative that states and school districts use the money as the bill intends, so that it’s spent wisely and where it’s needed most."
She added, "Students in classrooms across America will start the 2010-2011 school year in a much better place because of the efforts of these legislators. "
Secretary of Education Arne Duncan told reporters by telephone press conference Aug. 10 the bill is also "fiscally responsible" because it will ultimately cut the deficit over 10 years. According to the Congressional Budget Office, cuts to the expanded food stamps program made under the recovery act and some Defense Department programs, along with revision of the tax code to eliminate loopholes for corporations that move jobs overseas, will help reduce the deficit by $1.4 billion dollars by 2020.
Some critics charged that cutting the food stamps program as partial payment for the jobs bill was a bad choice. In an e-mail to supporters celebrating passage of the law, the United States Student Association also noted that with $1 trillion spent on the wars in Iraq and Afghanistan, "it is deeply concerning that our government doesn't have the political will to use a fraction of that money to help both feed and educate people."
"Congress had to make hard, hard choices," Duncan explained. He noted that the bill keeps the expanded food stamps funding in place for four or five years and the expanded funds for Medcaid will benefit low-income and unemployed families and individuals.
Democratic members of Congress vowed to restore the funding to the food stamps program in the future.
House Speaker Nancy Pelosi, who recalled the adjourned House into session to pass the jobs bill, claimed an important political victory. In addition to funding education and health care, she linked the bill's provision to close corporate loopholes for moving jobs overseas to the House Democrats' "Make it in America" agenda. "Make it in American factories so people can make it on their own in America," she said. "We believe repealing that provision that enables businesses to ship jobs overseas is a very important step."
Congressional Republicans denounced the bill but failed to adequately explain how allowing 300,000 additional layoffs this year and providing tax breaks to companies who move jobs out of the country would create economic growth.
