ANALYSIS
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Education at Heart of Obama Stimulus Plan
$140B in 2-year plan would take other pressures off states
By Matt Cantor
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Posted Jan 13, 09 3:43 PM CST
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(Newser)
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In its current form, Barack Obama’s 2-year economic stimulus plan—currently pegged at $775 billion—will channel some $140 billion to education, Politico reports. As Congress hammers out its plan, changes are likely, but education and Medicaid look set to be major beneficiaries. States will see major block grants, enabling them to focus on filling other budgetary holes exacerbated by the recession.
“When the recession ends, you are still going to need teachers, firemen, policemen, and the question is do we step in now or pay more to rebuild later,” said a House Democrat. About $80 billion could go to new funding, with an additional $20 billion to school construction—meaning the plan’s overall tab looks likely to run up to $850 billion.