Monday morning marks lawmakers’ return to the debate of whether it remains more beneficial to continue to spend money stimulating economic recovery, or to quit while ahead in an effort to preserve dwindling coffers.
On one side of the issue lies a party made up of mostly Democrats, arguing that Congress is duty bound to spend to help economically challenged states and their denizens. The other side, mostly consisting of Republicans, charges that adding to the nation’s deficit will contribute to further economic turmoil.
To be completely honest, neither side has much time to argue. Less than a month remains before lawmakers must leave for the extended August recess lasting until after Labor Day, after which campaigning for November elections will tie up decision making efforts. Three pressing issues lie on the table for lawmakers to wrestle with until the recess: unemployment insurance, state aid, and the Temporary Assistance to Needy Families Emergency Fund.
Over 2 million people have lost their weekly unemployment checks due to Congress’s refusal to extend the deadline to file for federal unemployment insurance. Lawmakers have been pushing to pass a bill allowing for the extension of the deadline until the end of November, but Republicans have blocked the measure, citing budgeting issues.
Congress also faces pressure from state governors for aid in balancing state budgets amid declining tax revenue, including a bill to extend $10 billion to states to help pay teachers’ salaries. The House also moved a six month extension of federal funding for Medicaid up the priority list in an attempt to get the necessary votes for passing it in legislation.
Additionally, the Recovery Act injected another $5 billion into the Temporary Assistance to Needy Families program and created an emergency fund. Half the stimulus money has already been used by states to provide grants, food programs, housing assistance, and other aid programs to local denizens. Another $615 million has funded state-subsidized jobs at companies, nonprofits and government agencies.
The House has passed the grab-bag bill that would extend the emergency fund for a year and inject another $2.5 billion into it, but legislation has been hung up in the Senate.