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$2.5B Welfare Expansion Is ‘Stimulus’?

Buried in a typically verbose article from the New York Times we posted earlier is this interesting sentence:

The economic stimulus bills pending in Congress would provide matching grants — estimated at $2.5 billion over two years — to states with caseload expansions.

Apparently, spending $2.5 billion dollars of the taxpayers’ money only warrants a single vague sentence tucked discreetly away in the the 13th paragraph of the NYT’s article.

But who knew that this was in the Obama/Pelosi stimulus package?

These grants are addressed in pages 354-361 of the 647 page bill (a pdf file):

Subtitle B—Assistance for Vulnerable Individuals


(a) IN GENERAL.—Section 403 of the Social Security Act (42 U.S.C. 603) is amended by adding at the end the following: ‘‘(c) EMERGENCY FUND.—

‘‘(1) ESTABLISHMENT.—There is established in  the Treasury of the United States a fund which shall be known as the ‘Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs’ (in this subsection referred to as the ‘Emergency Fund’).

‘‘(2) DEPOSITS INTO FUND.—Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for payment to the Emergency Fund.

‘‘(3) GRANTS.—


‘‘(i) IN GENERAL.—For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that—

‘‘(I) requests a grant under this subparagraph for the quarter; and

‘‘(II) meets the requirement of clause (ii) for the quarter.

‘‘(ii) CASELOAD INCREASE REQUIREMENT.—A State meets the requirement of this clause for a quarter if the average monthly assistance caseload of the State for the quarter exceeds the average month ly assistance caseload of the State for the  corresponding quarter in the emergency fund base year of the State.

‘‘(iii) AMOUNT OF GRANT.—Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be 80 percent of the amount (if any) by which the total expenditures of the State for basic assistance (as defined by the Secretary) in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total expenditures of the State for such assistance for the corresponding quarter in the emergency fund base year of the State…

Of course no actual sums are even mentioned in the bill.

But presuming The Times is right in their estimates, how is increasing welfare caseloads by $2.5 billion going to help stimulate the economy?

(This is a rhetorical question.)

This article was posted by Steve on Monday, February 2nd, 2009. Comments are currently closed.

23 Responses to “$2.5B Welfare Expansion Is ‘Stimulus’?”

  1. RightWinger says:

    I think it’s a stimulus because the welfare cheats recipients will be going out and using their newly found money for buying booze, cigarettes, plasma TV’s, laptops, IPods, Blue Ray Disc players, etc etc.

    I only base this assumption on what a lot of the Katrina people did with money they got handed to them. The image of the one huckster watching her new 50 inch flat screen TV in her apartment while complaing of living in a slum is still “seared” into my memory. :)

    • proreason says:

      Stingy bushhitler only allocated $200+ billion to Katrina, so after the necessities like plasma tv’s, there was nothing left for affordable housing.

      Where is your compassion?

    • sheehanjihad says:

      Almost all of those billions went to everything BUT Katrina relief. Nagin, Blanco, the entire New Orleans government all profited handsomely, the residents all got nice new things to enjoy, but somebody forgot to repair the levees with that money, or stilt the houses, or do anything to rebuild….why? Because all of that money was used just like our current administration is using it. Marked for “A”, appropriated, and then used for everything BUT “A”……I am beginning to dislike these folks…blaming Bush for not giving them more money? The levees failed in the first place because the City of New Orleans and the Louisiana Governor took those funds and spent them on something OTHER than levees, then blamed Bush for it. I gotta stop for a while, I am really getting pissed off at how easily people can steal money outright and not be held accountable as long as the “blame Bush” syndrome replaces common sense.

    • Liberals Demise says:

      I’ll take it from here SJ……CoCo Town need only to look to their neighbors to the north of them, “Kentucky”!! Hundreds of thousands of them without power in the cold and not ONE of them “Bitchin'” that the government isn’t doing enough for them or response time by the government coming to their aid.
      The people are pulling together to take care of themselves. Kentucky is a shining example of what this nation is suppose to be about.

      LowWheesyAnna is a prime example of a welfare state that looked to the gubbamint and not inside themselves to pull them out of a situation that they “chose”!

      If there is any doubt as to where this nation is headed if this non stimuli pact is passed……..”Mayor Nagin is on Line One”!!

  2. caligirl9 says:

    I have a heartwarming welfare story.

    A friend of my daughter installs floors for a living. This past fall he performed a wood floor installation for a home that is/was occupied by a family receiving Section 8 benefits. He worked on the installation while the family was home and he got to know them (by sight) pretty well.

    So imagine his surprise when he was at a Best Buy in early December and saw this family buy two 54-inch HD televisions. Yep, loaded them up into their late-model cherried-out pickup truck and took ‘em home.

    He promptly informed the landlord what he’d seen.

    Family no longer has Section 8 housing and is looking for housing without the benefit of a Section 8 voucher.

    So my friends, there are people willing to do the right thing. In this case, the young man is in his late 20s and this did happen in the kumbaya Bay Area. There are small pockets of decent people here.

    • Colonel1961 says:

      Sounds like your daughter is a good judge of character – and I’m sure that didn’t happen by accident. Good for you, your daughter, and the honest worker! Cheers!

    • caligirl9 says:

      Bless my daughter’s heart, in her circle of close friends—about 25 twenty-somethings—all of her close friends are conservatives. Not that she worked to have it be that way; it just happened. It does my heart good to hear about young people who do indeed get it and refuse to drink the Bambi kool aid. All are in college or college grads who did it via parental assistance, student loans or *gasp* work. Not a grant-taker or fee-waiver-er in the bunch!

      She is studying to be a paralegal and is interested in prosecutorial criminal law. Law school … who knows? She refused to take the immigration law elective because it’s a class on how to do the paperwork—not a class on just how many laws illegals are breaking!

  3. wardmama4 says:

    We The People are (finally) rising up:


    Let the Senate know how you feel about the Stimulus before they vote.

  4. 64dodger says:

    The next story says it all.

    NYT Sobs: Not Enough Are On Welfare.

    If the rolls are decreasing why do we need to spend more?

  5. A Mad Pole says:

    “NYT Sobs”

    Vey well said, 64.

  6. 12 Gauge Rage says:

    Welfare, the government designed opiate of the masses. It’s a shame that generations of Americans are still addicted to this narcotic. But to be truthfully honest it’s not just an American thing. The European welfare benefits are far more lucrative for lazy nonproductive wastrels.

    • Dataisgood says:

      Let’s see, many European countries rank higher in Education and Health than the US. Also, Quality of life is also often better. European companies are competitive in most industries (cell phones, oil [it wasn’t an American country that fouled up the gulf…], electronics, automobiles, alternative energy, etc.) For lazy non-productive wastrels, the do pretty good.

    • Liberals Demise says:

      “Quality of life is also often better.”
      Not from where I’ve been and seen. Had it not been for America after WW II Europe would be next to the Soviet Union and toilet paper rationing. Now Europe has a Mooselimb problem and capitulate to it rather than face it.

    • Adam Moreira says:

      At the same time, however, who is it that brings down the quality of life? The immigrants! Take them away and it’s pretty close to parity.

      That is, if immigration is restricted to those who have major value or talents (i.e., sports athletes, scientists, etc), you won’t have this problem. For Europe…lesson learned? Far from it.

    • BigOil says:

      Sure – lets ignore the fact that capitalism has produced a GDP in America equivalent to all of Europe.

      Lets ignore the fact that Europe spends a pittance on defense because they live under our protective umbrella.

      Lets ignore the fact that France is rioting because their government expects them to work 2 years longer for their lucrative pensions.

      Lets ignore the fact that Greece is bankrupt and Portugal and Spain are on the brink.

      Lets ignore the stagnant growth rates and high unemployment.

      Lets ignore the fact that socialism in its various forms has failed every time it has been tried. Best case outcome is equality of misery – worst case outcome is tyranny and oppression.

      At least the Europeans have plenty of free time on their hands to read poetry and sip their whine and eat their cheese.

  7. BigOil says:

    Truth is the amount of welfare in this Bill is closer to 200 billion dollars. Majority of the 250 billion dollars in so called tax cuts in the Democrat Constituent Payoff Bill go to people that do not pay federal income taxes – which makes it nothing more than a welfare payment.

  8. Confucius says:

    This is especially telling when you read it alongside the next S&L posting titled, “NYT Sobs: Not Enough Are On Welfare.”

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