Following the House’s approval, President Barack Obama yesterday signed into law a legislation that will provide $26 billion to struggling states by closing tax loopholes that encourage businesses to offshore jobs and cutting food aid to the poor.
The House voted 247 to 161 for the bill that will provide $16.1 billion in additional Medicaid money and $10 billion to prevent layoffs of teachers to states that have been hard-hit by the recession.
“We have an opportunity to create jobs,” Speaker Nancy Pelosi said. “At the press of a button, each of us will play a role in creating over 300,000 jobs, saving over 300,000 jobs across the country. Their jobsâthese people are consumers. It’s important to our economy that they are employed.”
According to the Congressional Budget Office, the bill reduces the deficit by $1.4 billion.
“This is really important legislation also because of the way it is paid for,” Pelosi added. “I am not happy about the taking money from our energy sector or from food stamps, but I hope that we can, Mr. Chairman, make that up in another way. I am very pleased about the funds that are obtained by repealing the provision to send jobs offshore. This legislation is fiscally responsible and fully paid for. It invests in American’s communities, again by closing that tax loophole that allows corporations to ship jobs overseas.”