May 15, 2003 – The U.S. Senate passed an amendment to the president's tax-cut bill on Thursday which would provide $20 billion in temporary assistance to states and territories — half of it an aid package for the federal share of Medicaid and the other half for general fiscal relief over the next 18 months.
The Democratic-sponsored amendment, according to a release from Delegate Donna M. Christensen, would provide an additional 5.9 percent in Medicaid funds to the territories for this fiscal year "over and above our cap, or approximately an additional $354,000."
She said the other $10 billion for general assistance would provide "at least $6 million for each of the territories."
"While only a temporary boost, any funding that would aid struggling local governments such as our own is welcome," Christensen said.
Many of the 50 states, like the Virgin Islands, are experiencing serious reductions in revenues due to a prolonged recession, the release noted.
Under the terms of the amendment, Christensen said, the territory could use its $6 million in general assistance for "education or job training, transportation or other infrastructure, law enforcement or public safety or other essential government services."
The Senate bill now must be reconciled with a tax-cut package passed last week by the House, where Republicans rejected Bush's proposal to eliminate dividend taxes — something the Senate version includes.
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