Chuck Grassley: “I would like to speak on concerns I have with the Medicaid and welfare provisions in the conference agreement we will be…”

“I would like to speak on concerns I have with the Medicaid and welfare provisions in the conference agreement we will be voting on shortly. This bill would provide an $87 billion slush fund for the States. As I have said on the Senate floor numerous times during this debate, States don't need $87 billion for their Medicaid Programs. The Congressional Budget Office analyzed an amendment I wrote to target funds just for enrollment-driven increases in Medicaid spending. The nonpartisan Congressional Budget Office gave us the answer for how much it would cost to provide federal funding for the additional Medicaid enrollment caused by the economic downturn. And that cost is not $87 billion; it is 1.8 billion. The remaining $75 billion in this bill goes to helping States fill in their deficits. Giving States almost eight times what they need for enrollment-driven Medicaid does not meet the definition of targeted in my book. Now, we will hear that this $87 billion Medicaid slush fund for States is necessary to avoid tax increases at the State and local level. We will also hear that vital State services will be cut unless the Federal Government cuts this big blank check to the States. But when asked to tie the taxpayer dollars to guarantees that the States will not raise taxes or cut services, we have been turned back by Members on the other side.”